Understanding Liabilities

Begin by listing your most current debts, such as utility bills, telephone bills, and
others.Next, list the balances outstanding on your credit card debts and loans. For most people, a home mortgage is their largest single debt outstanding.The amount to include is not the original amount of the loan but the current outstanding balance. The reason is because a part of the monthly payments made to the lender over the duration of the mortgage reduce the outstanding balance of the loan. The current outstanding balance of the loan may be obtained directly from the lender or from mortgage statements from the lender. You can also determine the balance yourself. See the financial calculator in section 20, which explains how to determine your mortgage balance. Add up all the amounts owed to others and you have the total of your liabilities.