Your Path to Debt Freedom

Understanding Your Debt

Before creating a payoff strategy, it’s crucial to understand your complete debt picture. List all debts with their interest rates, balances, and minimum payments.

Popular Debt Payoff Methods

1. Debt Snowball

   • Pay smallest debts first
   • Build momentum with quick wins
   • Stay motivated with visible progress

2. Debt Avalanche

   • Focus on highest interest rates
   • Save money on interest
   • Mathematically optimal approach

3. Hybrid Approach

   • Combine snowball and avalanche
   • Balance emotional and financial benefits
   • Customize to your situation

Creating Your Debt Payoff Plan

Step 1: List and Organize

• Gather all debt information
• Calculate total debt amount
• Determine minimum payments

Step 2: Choose Your Strategy

• Select snowball or avalanche
• Set realistic timeline goals
• Create dedicated debt payment envelopes

Step 3: Find Extra Money

• Cut unnecessary expenses
• Increase income through side hustles
• Redirect windfalls to debt

Staying Motivated

• Track your progress visually
• Celebrate milestones
• Join debt-free communities
• Share your journey with others