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How To Find Out How Much Debt You Have

Epic Loans Editorial Team

How to find out how much debt you have

A quick look at the debt landscape reveals an overwhelming scenario where the average person has $6,365 in debt. Now, you might find yourself pondering, “How much debt do I have?” or “How do I find out all the debts I owe?”.

In this blog, we will guide you through the simple yet effective process of determining the exact amount of debt you have and, once identified, coming up with a plan to pay it off.

Check Your Credit Score Reports

Obtaining your credit reports from reputable credit bureaus is the first step to finding out what debt you owe. Creditors typically provide information about your debt accounts to these bureaus, which, in turn, incorporate it into the credit reports that they monitor. These reports include information on a variety of accounts, including mortgages, credit cards, and personal loans.

Although most large lenders usually notify credit bureaus of account activity, this step is optional, so a creditor may decide not to provide them with information about your account.

Old Debts That May Not Show up on Your Credit Score Report

The duration of the debt determines whether it appears on your credit report: accounts that are closed in good standing are erased after ten years, while accounts that are closed after late payments are erased after seven. If a debt is missing from your credit report, check old bills or get in touch with creditors to find all outstanding debts.

Certain types of debt are exempt from the credit score report, such as medical debt, which is typically not reported to credit bureaus unless it is overdue.

Check Out Your Financial Accounts

Keep an eye on your debts by examining the statements from your financial accounts. These statements are readily accessible to you by checking your online bank account or reviewing the monthly paper statements that arrive in your mailbox. Occasionally, you might see automatic debt payments disappearing from your account without your knowledge. If you’re wondering how to find all debts owed, looking at your bank statements more closely can provide important information.

Contacting Your Creditors

Creditors may write or email you more letters or correspondence if you fail to make your payments on time. Reading these messages can help you plan how to make up for past-due payments, outline your options for getting help, and direct you toward the right support resources.

Make direct contact with creditors to gain a clear and thorough understanding of your debts. If you are unable to find the necessary contact information, find the phone number on the back of your credit card or check your credit reports.

Read More : How to Pay Off Credit Card Debt With No Money

How to Pay Off Debts After Listing Them Down

Using one of the many methods listed above, you can get a detailed overview of all the debts you owe. Once you see these financial liabilities clearly, you can proceed to address them. Here are some means to do that:

How to find out how much debt you have

Prioritize Your List of Debts

Selecting which debt to pay off first may seem daunting when money is tight, and stress levels rise. Consider the following recommendations in order to identify the debts that require your immediate attention:

  • Secured Debt: First, pay off debts that are backed by assets, like mortgages and auto loans, to avoid losing the assets. Talk to your creditor about options such as payment delays or assistance programs before sending in a payment. However, if there is no other alternative, your main priority should be ensuring that these payments are made on time.
  • Legal Liabilities: If you learn that a debt collector intends to file a lawsuit, take swift action. Check if the debt is legitimate and be informed about your legal rights. If it is valid, consider making a full or partial payment offer to avoid a lawsuit.
  • Fees and other Consequences: Prioritize the rest of your outstanding debts in order of possible consequences for nonpayment. Your credit score could be severely harmed by falling behind by 30 days or more. Pay close attention to those with the highest interest rates while also considering other factors like late fees, account closure, and the effect on your credit scores

Create a Budget

It’s important to look at your budget and determine what you can afford to shell out before paying creditors. Though paying off debt is crucial, it shouldn’t take precedence over your essential spending. Prioritize necessary expenses in your budget, like food, housing, utilities, medical needs, and work expenses.

After you’ve taken care of these necessities, carefully examine every expense and determine what can be lived without, even if it’s just temporary. With this approach, you can effectively manage your debts while also tending to your immediate needs.

Choosing a Payoff Method

Choosing a repayment plan is essential to creating and preserving financial stability when handling particular kinds of debt.

With the debt avalanche method, the highest interest rate accounts are prioritized, and repayment cost savings are maximized, thereby accelerating total debt elimination. On the other hand, the debt snowball strategy prioritizes paying off the accounts with the lowest balances first. This approach promotes faster debt elimination and maintains motivation to reach financial objectives.

Whichever approach you decide on, make sure to follow these steps:

Prioritize Your Debts: Sort your debts according to importance.

Set Maximum Payments: Put all of your money toward the first debt on your list and pay the minimum amount owed on the other debts.

Rolling Over Payments: After the first loan is paid off, transfer the remaining money to the second account on your list.

Repeat the Process: Until all debts are successfully paid off, keep up this pattern of repayment.

Read More : How to Negotiate Credit Card Debts

What if Your Debt Is Already in Collections?

Managing loans and credit cards requires a different strategy than navigating collections and debt settlement. In addition to dealing with possible legal consequences, paying off collection debts might not result in many advantages, like an instant improvement in your credit scores.

If you have a debt in collections, follow the steps below:

  • Request Verification: Do not confirm your debt ownership when a debt collector contacts you. First, request written confirmation to ensure the claim is genuine.
  • Investigate the Debt: Examine your credit reports and personal documents to ensure the debt is legitimate and correctly attributed to you.
  • Determine the Necessity of the Payment: Review the statute of limitations in your state and determine whether you are immune to a judgment, accounting for things like a fixed income or current salary.
  • Create a Settlement Fund: Gear up to negotiate a settlement with the debt collector by setting aside between 40% and 50% of the entire collection balance, if possible.
  • Contact the Debt Collector: Connect with the collector and work out a settlement if it is decided that payment is required. Request a written copy of the agreement, and upon receiving the paperwork, mail a payment with a cashier’s check. You can opt out of payment if the collector isn’t actively pursuing you or threatening legal action. Maintain your savings in the meantime for a possible settlement.
  • Maintain Detailed Records: Carefully record every transaction to refute any errors or out-of-date collection data that may surface on your credit reports.


The first step to achieving financial well-being involves understanding the extent of your debts. By carefully examining credit reports and setting sensible debt priorities, you develop the ability to make informed decisions.

If you’re wondering how to find out what debts you owe and exploring ways to address and consolidate them, schedule a complimentary consultation with Epic Loans for personalized guidance and solutions, especially in the realm of credit card debt consolidation loans. With our extensive network of lenders and service providers, you’re guaranteed to discover the ideal plan tailored for you.

Frequently Asked Questions

How to pay off your debts after finding the

After locating all of your debts, you can pay them off by prioritizing them, creating a budget, and deciding on a repayment plan.

What to do when debt is in collections?

If you are facing a debt in collections, ask for confirmation to support the claim before determining whether payment is required. Create a settlement fund and try to contact the collector to work out a possible arrangement. To protect yourself from any inaccuracies on your credit reports, it is necessary to document every transaction carefully.

How much debt can you get into before you need to file for bankruptcy?

There is no minimum amount of debt required by the U.S. bankruptcy code for an individual to be eligible for a qualified filing. To put it simply, any amount of debt is sufficient to file for bankruptcy.