Your debt-free plan
The day I found out my actual debt-free date, it stopped being a cloud hanging over me. It became a countdown.
You now know how debt works, what it really costs, the different types, how credit scores work, and the two main ways to pay debt off. Time to make your plan.
If you don’t have any debt, great: use this lesson to make sure it stays that way, and skip to the review.
Before you start
Gather the details for each debt: the balance, the interest rate (APR), and the minimum monthly payment. You’ll find them on your statements or in your lender’s app.
Then decide how much extra you can pay each month on top of the minimums. Look back at your Level 2 budget: even a small extra amount makes a big difference.
Make your plan
Plan your way out of debt
Add up to four debts. Nothing you type here is saved or sent anywhere.
Avalanche highest rate first
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Snowball smallest balance first
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Add your debts to compare the two methods.
Stay on track
- Automate your minimums so you never miss one.
- When a debt is cleared, don’t spend that money. Roll the whole payment onto the next debt. That’s what makes both methods speed up over time.
- Celebrate each debt you clear, cheaply. It keeps you going.
- Once you’re debt-free, move those payments into savings and investing. You’re already used to living without that money.
When my last debt was gone, I kept paying the same amount every month. Into savings this time. It was the easiest saving I ever did.
