Step 5 – Inventory your Debt

I can’t wait to inventory my debt… said no one ever! But to understand our retirement readiness, we must have the entire picture. That includes an inventory of our debt. Ugh!

In this step, we’ll take a look at short term and long term debt. Short term debt is usually paid off within a year and consists of credit cards, medical bills, and consumer loans. Long term debt has a longer payment term and may have collateral like your home or car against it. Your mortgage, car loan and student loans are examples of long term debt.

step 5 inventory your debt

Let’s Get Started – Inventory your Short Term Debt

Start by listing your credit cards (store credit cards, Visa, Mastercard, etc.) include:

  • Company
  • Credit card number
  • Interest rate
  • Balance due
  • Minimum payment amount
  • Date due
Debt Inventory for short term debt and long term debt.

To make your life easier, here is the debt inventory tool that you can download for FREE.

Now inventory your other short term debt like medical bills, personal loans, etc. Include:

  • Company
  • Account number
  • Interest rate
  • Balance due
  • Minimum payment amount
  • Date due

Ok, this is starting to give you a picture of your debt. It might be overwhelming. But awareness sets you up to tackle the problem. Remember you need to know where you are, so you can figure out where you want to go and how you’re going to get there.

Long Term Debt

Basically, we’ll follow the same process to inventory our long term debt.

Long Term Debt, mortgage, car loan

If you haven’t downloaded the Retirement Net Worth Tracker, please do it now. This tracker gives you a complete picture of your assets and debts in one easy place.

Retirement Net Worth – Debt

Now that you’ve created your debt inventory, let’s add these items into your Retirement Net Worth Balance Sheet. Access the 2nd tab to enter your debts.

Congratulations! You have now inventoried your assets and your debts. I know it was hard work. In our next step we’re going to complete your Retirement Net Worth Balance Sheet. This is so exciting because it will let you know where you are at with your finances.

Blue Skies!

Connie

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