When making a budget it is really important you don’t lie to yourself or make the whole picture better than it really is. Most of the time when I help people sit down and find out how much debt they really have there is always something they forget about. It usually adds up to about five to ten thousand dollars that they forget about or didn’t think of as debt. Like any student loans or a time share they are paying on.

If you owe someone else money it is called debt and yes it needs to be counted. The best way to find out what you have and what you need to do to get yourself into a better position you have to make a list of all the debt you owe and the interest you owe on all that debt and the best way to pay it off is on all the other debt you just pay the minimum. But on the one that has the highest interest you put as much in it as you can to pay it off. Once you have paid that one off you then move onto the next piece of debt with the next highest interest and so on until they are all paid off and you are debt free.