Creating a Debt Inventory
How to list, organize, and track all your debts in one place
Creating a Debt Inventory
You can’t manage what you don’t measure. A debt inventory is the first step to becoming debt-free.
Why Create a Debt Inventory?
The Problem
Most people don’t know:
- Exactly how much they owe
- Which debt costs the most
- When each debt will be paid off
- How much they pay in interest yearly
The Solution
A complete debt inventory shows:
- Total debt amount
- Monthly payment obligations
- Interest costs
- Priority order for payoff
Gathering Your Information
What to Collect
For each debt, you need:
| Information | Where to Find |
|---|---|
| Current balance | Statement, app, website |
| Interest rate | Loan agreement, statement |
| Monthly EMI | Auto-debit amount |
| Minimum payment | Credit card statement |
| Remaining tenure | Bank/lender statement |
| Original amount | Loan agreement |
| Prepayment terms | Loan agreement |
Sources to Check
Bank accounts:
- Net banking → Loans section
- Bank statements
- EMI debit history
Credit cards:
- Credit card statements
- Card app
- Call card helpline
Other loans:
- NBFC portals
- Original loan documents
- Payment records
Credit report (comprehensive check):
- CIBIL, Experian, Equifax, CRIF
- Shows all loans reported
- May reveal forgotten debts
The Debt Inventory Template
Basic Template
| Debt | Balance | Rate | EMI | Remaining Months | Payoff Date |
|---|---|---|---|---|---|
| Home Loan | ₹45,00,000 | 8.5% | ₹40,000 | 180 | Dec 2038 |
| Car Loan | ₹4,50,000 | 9.5% | ₹12,000 | 48 | Jan 2028 |
| Personal Loan | ₹2,00,000 | 14% | ₹6,500 | 36 | Dec 2026 |
| Credit Card 1 | ₹75,000 | 42% | ₹3,750 (min) | – | – |
| Credit Card 2 | ₹35,000 | 40% | ₹1,750 (min) | – | – |
| TOTAL | ₹52,60,000 | – | ₹64,000 | – | – |
Advanced Template
Add these columns for deeper analysis:
| Debt | Balance | Rate | EMI | Monthly Interest | Principal/Month | Total Interest Left |
|---|---|---|---|---|---|---|
| Home Loan | ₹45,00,000 | 8.5% | ₹40,000 | ₹31,875 | ₹8,125 | ₹27,00,000 |
| Car Loan | ₹4,50,000 | 9.5% | ₹12,000 | ₹3,562 | ₹8,438 | ₹1,26,000 |
Calculating Monthly Interest
Monthly Interest = Balance × (Annual Rate ÷ 12)
Home loan: ₹45,00,000 × (8.5% ÷ 12) = ₹31,875
Sample Debt Inventory
Ravi’s Debt Inventory (April 2024)
Monthly income: ₹1,20,000 Debt-to-income ratio: 53% (concerning!)
| # | Debt Type | Lender | Balance | Rate | EMI | Tenure Left | Notes |
|---|---|---|---|---|---|---|---|
| 1 | Home Loan | HDFC | ₹42,00,000 | 8.5% | ₹38,500 | 168 months | Fixed rate |
| 2 | Car Loan | ICICI | ₹3,80,000 | 9.2% | ₹9,800 | 42 months | Can prepay |
| 3 | Personal Loan | Bajaj | ₹1,50,000 | 15% | ₹5,200 | 33 months | 2% prepay fee |
| 4 | Credit Card | SBI | ₹85,000 | 42% | ₹4,250 min | Revolving | Highest priority |
| 5 | Credit Card | HDFC | ₹45,000 | 40% | ₹2,250 min | Revolving | |
| 6 | Gold Loan | Muthoot | ₹75,000 | 12% | ₹3,500 | 24 months | Can close anytime |
| TOTAL | ₹49,35,000 | ₹63,500 |
Analysis
Non-home debt: ₹7,35,000 Non-home EMIs: ₹25,000 Credit card interest/year: ~₹50,000
Priority order (by rate):
- SBI Credit Card (42%)
- HDFC Credit Card (40%)
- Personal Loan (15%)
- Gold Loan (12%)
- Car Loan (9.2%)
- Home Loan (8.5%)
Understanding Your Numbers
Total Debt
Add all balances:
Total Debt = Sum of all current balances
This is your debt mountain to climb.
Total Monthly Obligations
Add all EMIs and minimum payments:
Monthly Obligations = Sum of all monthly payments
This is your fixed monthly debt cost.
Debt-to-Income Ratio
DTI = Monthly Debt Payments ÷ Monthly Income × 100
| DTI | Status |
|---|---|
| <20% | Healthy |
| 20-30% | Manageable |
| 30-40% | Concerning |
| 40-50% | Stressful |
| >50% | Crisis mode |
Monthly Interest Paid
Total Monthly Interest = Sum of (Balance × Monthly Rate) for each debt
This is money going to banks, not to you.
Annual Interest Cost
Annual Interest ≈ Monthly Interest × 12
This number is what you’re fighting against.
The Interest Reality Check
Example Calculation
| Debt | Balance | Rate | Monthly Interest | Annual Interest |
|---|---|---|---|---|
| Home Loan | ₹45,00,000 | 8.5% | ₹31,875 | ₹3,82,500 |
| Car Loan | ₹4,00,000 | 9.5% | ₹3,167 | ₹38,000 |
| Credit Card | ₹1,00,000 | 42% | ₹3,500 | ₹42,000 |
| Personal | ₹2,00,000 | 14% | ₹2,333 | ₹28,000 |
| TOTAL | ₹40,875 | ₹4,90,500 |
You’re paying ₹4.9 lakh per year in interest!
This is the cost of your debt. Every rupee used to reduce principal reduces this.
Organizing Your Inventory
By Interest Rate (Highest First)
Use for Avalanche method payoff:
- Credit Card 1 (42%)
- Credit Card 2 (40%)
- Personal Loan (15%)
- Car Loan (9.5%)
- Home Loan (8.5%)
By Balance (Smallest First)
Use for Snowball method payoff:
- Credit Card 2 (₹35,000)
- Credit Card 1 (₹75,000)
- Gold Loan (₹75,000)
- Personal Loan (₹1,50,000)
- Car Loan (₹3,80,000)
- Home Loan (₹42,00,000)
By Type
Secured:
- Home Loan
- Car Loan
- Gold Loan
Unsecured:
- Personal Loan
- Credit Cards
Keeping Your Inventory Updated
Monthly Updates
Every month, update:
- Current balance (it reduces with EMI)
- Any extra payments made
- Any new debt added
Quarterly Review
Every quarter, assess:
- Total debt trend (up or down?)
- Interest rate changes
- Prepayment opportunities
- Payoff timeline changes
Annual Audit
Every year:
- Get credit report
- Verify all debts are captured
- Recalculate payoff strategy
- Celebrate progress
Digital Tools for Tracking
Spreadsheet (Recommended)
Google Sheets or Excel:
- Custom formulas
- Automatic calculations
- Charts for progress
- Free
Apps
| App | Features |
|---|---|
| Debt Payoff Planner | Visual payoff tracker |
| Undebt.it | Multiple strategies |
| Vertex42 (template) | Excel templates |
Simple Notebook
If digital isn’t your thing:
- Physical register
- Monthly balance updates
- Visual crossing out as debts clear
Action Items from Your Inventory
Once complete, you can:
- See total debt clearly — no more hiding
- Identify expensive debt — attack high-interest first
- Calculate monthly cost — understand your obligations
- Plan payoff strategy — choose snowball or avalanche
- Track progress — monthly updates show improvement
- Negotiate rates — armed with data
- Prevent new debt — seeing total is sobering
Red Flags to Watch
In Your Inventory
⚠️ Credit card debt > 1 month income — Danger zone ⚠️ DTI > 40% — Overextended ⚠️ Multiple high-interest debts — Need consolidation review ⚠️ Debt increasing monthly — Spending > income ⚠️ Only paying minimums — Never getting ahead
Key Takeaways
- List everything — include all debts, even small ones
- Know your rates — interest rate determines cost
- Calculate totals — face the full number
- Understand DTI — keep under 30% ideally
- Track monthly — watch balances decrease
- Use the inventory — to plan payoff strategy
- Review regularly — quarterly minimum
Next: Debt Avalanche Method — The mathematically optimal payoff strategy.