Own your debt!

Knowing your debt.......wow!

In the world of credit cards, debit cards, lines of credit, mortgages......it is important that we all own our debt. If we don't own it, we can't do anything with it, right?

This week I say the Dutches of York on Oprah, aside from everything she has going on, I wasn't surprised she was way over her head in debt; I was surprised she didn't know how much she was in debt for (way in the millions I assume, but nothing she could even swag at). I thought about this for a while.....how many of us don't know how much we are in debt for?

How can you eliminate or start getting rid of something when you don't know what exactly it is you are trying to get rid of? Imagine running a race and not knowing where the finish line is? Better yet, imagine if you didn't know where the finish line was; and the finish line kept on changing the longer you took to figure out where it was?

DEBT is exactly like a race. We begin getting in debt, and then we should be able to eliminate that debt, and have a plan on how to get there.

Debt includes anything and everything that you are making payments on. It all counts: student loans, car payment, mortgage, the awesome red sweater you bought on super sale on your credit card, even the money you borrowed from your mom (if you borrowed it, it is debt - not just something between you and your mom).

I can't tell you all how important it is for you to know what your own debt is, but if you are married or have a partner, know what they're debt amounts to, know what your household's debt amounts to. I have had so many friends go through divorce/separation, and they are surprised when they have to assume 1/2 of their ex's debt. For many of us women it is easy to let our husbands handle all the finances, the mortgage, etc.; but then the unthinkable happens, divorce, separation, death....and then go into shock when they find out what the outstanding debt amounts to.

In the next few days I want to take some time and define all the terms associated with debt. We all sort of know, but don't really know. I want to make sure everyone understands and knows not only how much they are in debt for, but also what all the terms mean: interest, principal, compounding, amortization....(oh my!)

So people...add it up, write it down. Own your debt.