Have you had that “holy crap!” moment regarding your debt?
You know, it’s that point where you say, “What the %#!& have I been doing?”
If you have, I’m hoping that you’ve taken the steps to start attacking your debt like crazy.
If you haven’t had that moment, I want to get you to utter that phrase right now.
It’s time to sit down and find out just how much interest you’re paying on a monthly basis.
I’m not talking about just skimming over your credit card statements. I mean totaling the interest from all of your debts.
There’s nothing more motivating than seeing that you are paying $100, $500 or more in monthly interest. Wouldn’t that money be better focused somewhere else?
Start this exercise by gathering the following information for your debts:
- Total Balance
- Annual Interest Rate
- Most Recent Payment
When you have all of that information ready, use the following spreadsheet to calculate the cost of your debt.
Download: Personal Debt Cost Calculator
Note: This download requires Microsoft Excel. If you do not own Excel, you can open the file in Google Drive. You will need to be careful not to overwrite the formulas if using Google Drive. Click the “Use This Template” button at the top to enter in your numbers.
So how did you make out? Were the numbers a little surprising?
I hope those numbers triggered an emotion in you so intense that you are now considering selling your expensive car and buying a cheaper alternative (or something equally as extreme). That’s the kind of commitment you need to end your reliance on debt forever! Start attacking it!
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How did the numbers affect you? Were you surprised at how much your debt is costing you? Share in the comments!