This Dave Ramsey Debt Snowball Worksheet is part of his guide to debt. It outlines how to stay on top of your finances, how to prevent your debt from getting out of control, and how to eliminate credit card debt for good. If you’re in over your head with credit card debt, this guide is definitely something to keep close to your side.
The debt snowball worksheet has been updated to include seven key steps to eliminate unsecured debt. You should pay attention to the suggestions listed here. By taking action on them now, you can ensure that you have only your best interests at heart when negotiating with your creditors.
Taking control of your finances is the most important step. Set up a new budget and stick to it. Once you’ve established a budget, establish a monthly spending limit. You’ll be amazed at how much money you can spend on anything you want when you have a firm grasp on your finances. Your finances are your own and you control them.
Next, make sure that you write down a detailed cash flow plan. How much money do you anticipate going out each month? Now, make a list of everything that you want to do with your money: paying off your debt, buying a new car, buying a vacation, etc.
Take the money that you use to pay off your debt and put it in a separate bank account. You’ll want to set aside some money for unexpected expenses. This will give you the opportunity to live beyond your means, as well as the chance to get prepared for your future finances.
The debt snowball worksheet also has a section that shows you how to close out a credit card account. By setting up a withdrawal from your emergency fund and withdrawing the money from your bank account, you’ll make it a lot easier to pay off your creditors. It’ll also give you some financial relief.
Make a list of all the bills that you’re paying on time, and then close those accounts. You’ll save yourself from more stress and a possible bankruptcy. Closing credit card accounts is a very good way to reduce your debt, but is not the only way to do it.
If you take a couple of minutes to do this, you can easily close more than half of your credit card accounts without breaking a sweat. As soon as you have all of your bills in one place, you’ll be in a much better position to negotiate with your creditors. You don’t have to make compromises or agree to any terms. By doing this step now, you’ll save yourself years of headaches and heartache.