Organizing My Debts

I recently posted about making my first step in tackling my scary debt folder, which was acknowledging that it exists and committing to get rid of it. When I talk about that first step, it sounds like it would be the easiest, but it was REALLY hard. The second step was actually kind of fun, and I’m excited to share it!

I felt like after acknowledging my scary debt folder and committing to the scary debt folder, I needed to organize it before I could do anything else. As I mentioned before, I would open a bill, shove it into the folder, and then pretend like it didn’t exist. Okay okay, sometimes I wouldn’t even open the bill… But my point is, my scary debt folder was SO UNORGANIZED.

Sort & Purge

I started by opening all of the bills, unfolding them, stacking them in a neat pile, and shredding the envelopes. As I did this, I realized that there was actually a bunch of duplicates because apparently places will send you the same bill eight times??? Good to know for future adulting.

Once I got rid of all of the duplicates, which was a surprising amount, I organized them by total amount due. This made most sense to me because I’ll work on paying off the smallest bills first. Definitely consider what you want your approach to be so that your organization makes the most sense to you. If you’re planning on putting all of your debts on payment plans (or if they already are) maybe consider sorting them by what your monthly payment is, or when each one will be paid off. If you want to pay off the oldest one first, consider sorting them by the date you received them. It doesn’t matter how you organize them, as long as it makes sense to you.

My Scary Debt Binder

I bought an affordable binder, dividers, lined posties, and a lined notebook from Target ( I always LOVE their Yoobi line because for every item you buy, a Yoobi item is donated to a classroom in the US). I hole punched all of the debts and put them into the binder organized by total amount due. I decided that I would have tabs for Unpaid, Currently Paying, and Paid in Full. The Unpaid tab is for the debts that I haven’t made ANY payments on yet. The Currently Paying tab is for the debts that I’ve made even one payment on, even if my payments aren’t regular. The Paid in Full tab is for the debts that are completely paid with no remaining balance. Again, it doesn’t matter what your tabs are, as long as it makes sense to you.

UPDATE: I made my binder more fun with washi tape and sticker letters! It makes me more excited to get it out!

Paid In Full Debts

I considered just getting rid of the bills once they were completely paid, but I decided to keep them so that I could visually see my progress as they’re paid off, and have the satisfaction of moving them to a new tab. Also, I think it will be much more exciting to throw out the ENTIRE scary debt folder (now a scary debt binder) at one time!

This whole step made me feel much more organized and actually made my scary debt binder a lot less scary! Do you have any tips for organizing your debts? Comment them below!

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