Millions of people in the United States are swimming in debt, and they do not know how to pay them off. A recent survey shows that most Americans have an average of $17000 debts. Debts will give you sleepless nights. If you want to cut down your debts, follow these tips:

Know your creditors and how much you owe

If you want to live a debt-free life, the first thing is to make a list of your debts, the total amount of debts and the creditors. The due date of the debt should be listed too. If you have a credit report, it will be easier to confirm the debts indicated in the list. When you have the list in front of you, you will see a clear and better picture of your debts. You will be more aware of the situation at hand.

Never create the list then forget it. It is crucial to keep on checking the list from time to time. Experts say that the best time to check the list is when you are about to pay your bills. As the amount indicated keeps changing, make sure that you update the list periodically.

All your bills should be paid on time

People who pay their bills late find it hard to clear their debts since they are forced to pay a certain amount of late fee. This charge applies to all the payment that has been done late. If you make two late payments, the finance charges and interest rates will increase significantly.

When making the special list, you can opt to use the calendar system that is available on your computer. Your smartphone can come in handy when making this list too. Whenever you have made a payment, enter the details in the smartphone or computer and set the alarm for the next payment. If you happen to miss the payment, never wait for the next due date. Most of the lenders will have reported you to the credit bureau due to late payments.

Have a monthly bill payment calendar.

People who have a bill payment calendar will rarely make their payments late. This is the perfect way to figure out the bills you will need whenever you get money. Use the calendar to write every bill payment date and amount. The date of all your paycheck should be clearly stated on the pay bill calendar. Some people receive their salaries on the same date each month. In this case, they can use just one calendar. However, if you will receive your money on different dates of the month, create a pay bill calendar for all the months.