A full picture of your financial situation will help you design a plan to payout what you owe, and put you back on the path to good financial health.
This section contains tools to help you measure your debt, calculate your interest rate; understand your rates and monthly expenses, and to realize that by paying more than the minimum will help you liquidate your debt faster.
Assets
Assets are everything that you own, they are divided into the following categories:
Quick Assets - Money and financial assets that can easily be converted into cash (checking account, financial market accounts, savings accounts, etc).
Investment Assets - These assets are maintained because of its financial return, contrary to quick assets, these assets values tend to increase with time (stocks, bonds, mutual funds, etc).
Real estate – Are land and properties (your home).
Personal property – Everything that is moveable and of personal use. These assets tend to depreciate in value (cars, furniture, clothing, etc).
Inside these basic categories, assets can be classifieds as:
Collectibles – Assets that can be maintained either for personal use or financial gain (art, antiques, etc).
Fixed Income Assets – Investments generating fixed income, usually warranted (certificates of deposit, promissory notes, etc).
Business Participation - This classification refers to any capital you own in any business you are part of.
Raw materials/Tangibles - Gold, silver, gemstones, etc.
Liabilities
Liabilities are everything you owe.
Current liabilities - bills that will be paid in full, during a specific time period (rent, utilities, medical bills, credit card debts, etc).
Long-term liabilities: liabilities that will take longer than one year to be settled (mortgages, car payments, college).
Inside these basic categories, liabilities can be classifieds as:
Credit Card bills - the total balance must have been used, regardless the amount of payments made.
Taxes – Taxes paid over the property value (property or tenancy taxes), taxes paid over generated income (income taxes).
Current portion of long-term debt - the portion of long-term debt due within the next 30 days.
Net assets - Is the amount of assets you possess, based in your assets and liabilities. It is calculated subtracting liabilities from assets. The net assets grow when assets are accumulated while liabilities are reduced or eliminated.