Many people make statements such as the following (how many of them are statements you might make?):
If four or more of these statements ring true, then your spending habits may need some serious scrutiny.
The first step is to take a look at your debt as a whole. Fill out the Debt Worksheet. It will help you put together a list of all the money you owe, and is your best starting point for the calculations and strategies that are necessary. Put down every item, no matter how small. For credit cards, put down the outstanding balance, not the amount you pay off each month. Then use your totals to calculate your consumer debt ratio and your total debt ratio. You might also want to look at the section Why Have I Gotten into Debt?