How To Make Debt Payments

Making debt payments will not be an unpleasant task, if you have the resources and a plan. It can actually be enjoyable if you follow your plan and congratulate yourself when you see the balances getting smaller and smaller.

Begin by creating a plan that fits your budget. If you have some old debts, it's best to get rid of those first. Older debts or ones that have been reported to the credit bureaus will usually accept whatever arrangement you create, provided it's reasonable. Remember, if you create a letter to send to your creditors you are obligated to fulfill your agreement. You need only decide how much you can put toward debt repayment each pay period.

For example, let's say that you want to pay off 6 creditors and you have $150.00 a month that you can put toward your goal.  Simply divide the $150 by 6 and you will see that each creditor will get $25 per payment. Each pay period you must take out an amount that will equal the $150 for the month. So, if you are paid weekly you must set aside $37.50. Don't put the money in the bank and leave it, follow this plan:

Week 1- Pay creditor #1- $25
              Save $12.50 for next week

Week 2- Pay creditor #2- $25,
              Put the $12.50 with the $12.50 from last week
              And pay creditor #3- $25

Week 3- Pay creditor #4- $25
              Save $12.50 for next week.

Week 4- Pay creditor #5- $25
              Put the $12.50 with the $12.50 from last week
              And pay creditor #6

Then start with week 1 again and repeat these payments until the debts are paid off.  If you are afraid that the saved $12.50 may get used before the next payment is due, buy postal money orders. Postal money orders are very safe to use for making payments and will also avoid creditors gaining access to your bank information.

To create a more specialized plan, divide the amount of the debt by 12 if you want to pay it off in one year. For larger debts you may have to divide the amount by 24 or 36 months.

So many times seeing a huge pile of debts can make you feel defeated and beaten. Don't let it happen. Create a plan, and stick to your plan.

Congratulate yourself each pay period when you see the balances going down, even if it's just a Latte!


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