Can you calculate the real value of your debt?

Have you ever put on paper how much your debt is actually worth? Or have you never made the calculation because you don’t even know where to start?

The most important thing here is that if you don’t know that value, you can’t start trying to change it. And you can’t live in debt, can you?

And only from the moment you know how much you owe and for whom you owe it, will you be able to have a healthy financial life again.

Here’s how to calculate the real value of your debt, pay off all your debts and more.

How to calculate the real value of your debt

You’re in debt, but do you realize what the real value of your debt is? Do you owe a credit card, a special check, do you have any loans? It’s important to know what your current situation is.

But if you don’t know where to start making that calculation, see the steps below.

Step-by-step to calculate the actual amount of your debt

The first step is to write it down on a piece of paper or on a spreadsheet on the computer, to whom you owe it. Actually, at this point, you don’t even have to write down the amount, but the people, banks, stores you owe.

Then write down the amount you owe each one of them. In the case of banks and credit cards, just ask for your account statement and credit card statement.

Remember that in the case of any loan or financing, pay close attention and write down the balance due. If by any chance there is an overdue account, you should also remember to post it.

Calculating in practice

Let’s say you put it all on paper and already know the real value of your debt. What do you have to do to figure all that out?

The first thing is to know what your recipe is, too. That’s the only way to think about the strategies to be taken to pay off your debts.

Based on the information you have about your debts, also add all your monthly fixed costs such as rent, electricity, gas, school fees, supermarket, etc.

And what to do now? Add your debts to your monthly expenses. Ideally, separate the two, as this will help you to better elaborate your payment spreadsheet.

Then, just take your revenue and decrease what you owe. This way, you have a clearer vision and with this financial planning in hand, you can assess what steps you should take to start ending your debts once and for all.

How to set up a financial plan

If you’re still in doubt, here are some tips:

  • Write down all your fixed expenses: rent, condominium, household bills, etc.
  • Record any expenses: buying a medicine, a gift, etc.
  • Write down all your daily expenses.
  • Write down your leisure expenses.
  • Once you have noted everything, compare it now with your income. Ideally, you should pay all your bills and some money. But if there is nothing or worse, it is time to act.

Review your accounts and evaluate what is really indispensable. For example, you have a cell phone plan that entitles you to X mega internet, X minutes of calls. Do you need all that? Do the same for all your accounts.

The goal here is to reduce your expenses, so that you have money to start repaying your debts.

Renegotiating your debts

You’ve already made a list of all your creditors. It’s time to renegotiate your debts. Talk to your bank manager and see if you can reduce your interest. Another idea is to take out a personal loan (at a lower interest rate) and pay off debts at a higher interest rate.

The tip is always to start with those debts that charge the highest interest, but be careful if you take a personal or consigned loan that you are sure you can afford the installments.

Credit card debt and special checks are the highest. So for a period, avoid using the card and the special check. Otherwise, you will never be able to catch up on your financial life.

The importance of having an emergency reserve

You know that we live in somewhat unstable times in our country, so it is very important that you have an emergency reserve.

Some experts recommend that the amount of this reservation should be the equivalent of 6 months of all your expenses.

This way, in case of any unforeseen event or emergency, you will have, at least for a while, how to fulfill your commitments.

Make your money work for you

If you have considered your debts and have control over your finances, of course you do not want to go through that again.

So look for ways to invest your money. Today it is possible to invest little money, as is the case with Treasury Direct. Find out more and find a type of investment that fits your profile.


It is not so difficult to calculate the real value of your debt, but it is essential to assess the whole situation and start thinking about strategies so that it does not grow further.

Depending on your debt, it may take a while to get your financial life in order, but you have to start.

These are small attitudes that can be incorporated into your everyday life, but have a lot of discipline and determination. And in the end, you’ll realize it was worth all the effort.

Have you reorganized your debts? Tell us what your biggest difficulty is in planning your finances.

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