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The 5 W’s of Debt ~ Who, What,Where, When, Why

 

 

The 5 W's of Debt

 

where has money gone

Who: You, you are the reason why you got into debt, you can't blame it on anyone but yourself I know people who will try and blame other family members or friends, Example oh but my friends wanted to go eat out at the movies and go for dinner, My spouse had to have a new phone and computer. My brother needed $100

What: What are you going to do about all this debt?  Creating a budget and a track plan is the first road to success on becoming debt free. You need to write down all your current debt, and add it up, you also need to write down how much your bills are every month, You need to find out how much cash you will have left over after taking care of all your bills and paying money towards your debt. Then with the amount of money you have left over you will then need to divide that up between groceries, going out, clothes, etc. If you do not have enough money for any of this, well then you will need to find a part time job or consider canceling your cable, phone etc. Because if you are putting more money out then you are making then this is the obvious reason why you are in debt

Where: Where has your money been going? You need to really go over your bills, and spending over the last 6-12months and really see what you are spending your money on. Add up the totals, eating out, going out, bills, groceries, clothes, etc. If you don't have receipts or statements, then you need to start keeping track of these things. This is what is going to help you get out of debt.

When: When are you going to start? You should of started yesterday, People with thousands of dollars of debt are not going to see it magically disappear over night. You are going to have to suffer now for 3-5 years maybe more just to pay off all this debt you have accumulated. You are going to need remember the rewards of being debt free, and just deal with the "suffering" of not being able to go out with your friends, buying a new television, being able to buy your coffee at a local coffee shop everyday, buying new clothes and shoes. You got yourself in this mess now you need to grow up and deal with.

WHY: Why are you in debt in the first place, you need to really sit down and think about this, was it because you are a impulsive buyer? is it because you were to lazy to cook your own food and have to eat out? Is it because you really had to buy yourself another new outfit, purse, shoes, television etc.

You need to figure out the why so you stop doing it to yourself which is going to create you more debt. Before you decided to do anything really stop and think about what you are doing and is going to help you or hurt you. Don't think oh, well I am already in debt what is another $20 well that $20 more is everything

 

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