In order to effectively reduce your debts and fix your credit history, you are going to have understand proper organization and effective ways to keep track of your financial records. To make an effective filing system, experts recommend alphabetizing your relevant documents by subject or category. But don’t make the mistake of having too many or too few categories. A dozen broad categories should be the maximum in any filing system. Therefore, a sample file index might include categories for:
• Banking records (including checking and savings accounts)
• Bills paid (where you file regular monthly expenses)
• Budget (for itemized listings of all your expenses, income and assets)
• Credit cards (useful for storing receipts, statements and contracts)
• Insurance (auto, health, life and property insurance records)
• Investments (such as 401(k) and mutual fund reports)
• Mortgage
• Receipts
•Taxes
