How to Organize Your Debt Expense Sheet

Whether you operate a business or need to manage a home budget, it's beneficial to create a debt expense sheet. This form simply lists all of your debts, including loans and credit card balances, in one convenient location. It allows you to see your financial situation at a glance and make important decisions and plans for how to eradicate the debts. Organize your debt expense sheet so that you can reference the information quickly.

• 1

  Create a separate worksheet for your business and personal debt if you run a company. Use a computer spreadsheet. List each debt account including the name of the credit, balance, interest rate, monthly payment and any additional fees you're responsible for paying.

• 2

  Categorize the debt listing into two main categories --- revolving and installment loans. Revolving debt (credit cards and lines of credit) stay open continuously until you close the account. Installment loans have a definite end (for instance, a five-year car loan).

• 3

  Identify the order of priority for your debts. Decide which debts are urgent for you to pay off quickly and which debts are lower on the totem pole. Secured debt (tied to a piece of property) is often higher on the list of priorities, since you could lose the asset. For example, mortgage and car payments are higher on the priority list compared to a debt to a fitness club. Assign an "E" next to each debt that is essential and an "N" next to each debt that is not urgent.

• 4

  Go through your list of debts again and assign a specific number of priority (one, two, three and so forth) next to your "E" or "N" to further clarify which debts you should focus on paying off first. Consider the interest rate when making this decision on the priority numbers. For example, you may decide that paying off a credit card debt with a 20 percent interest rate is a higher priority than a similar one with a 5 percent interest rate. In that case you might assign the first debt as E2 and the second as E3.

• 5

  Order your debts now that you have assigned letters and numbers. Save the sheet for reference.