Calculate The Monthly Cost Of Your Debt — Then Get Rid Of It

It can be easy to get lazy about debt because the more it grows, the more we tend to avoid it. The problem is harder to run from when you know exactly how much that debt is costing you every month.

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Money blog Get Rich Slowly suggests creating a list of all the debt that you owe. By creating a master list, you're ensuring that you're fully aware of all of your debt, and you're building motivation to tackle the problem. For some people, that may be enough to get started tackling the problem.

If that doesn't jump start you, the author details a step-by-step for calculating the cost of your debt, start to finish. It's a quick way to assess your situation without getting bogged down in the details. The post also suggests calculating how much interest you pay daily, monthly, yearly or even over the entire life of the loan to help put the cost of your debt in perspective. If your financial statements aren't clear on how much interest you pay, use an amortisation calculator.

Lifehacker readers are normally pretty allergic to debt, but if you've let your debt grow a bit too much and it's become one of those things you avoid addressing at all costs, getting to know your debt more intimately is an important step in motivating yourself to tackle it.

Calculate How Much Your Debt Costs You Per Month [Get Rich Slowly]


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