There are various simple plans. Most of them boil down to paying more than the minimum payment due each month. Here is a list of several ways, use one or use them all. The first step for all of these is STOP using your credit cards.

- After you have paid all your bills for the month, send what is left toward one of your debts.
- If you get a Tax Refund: instead of spending that Tax Refund on new clothes or a set of golf clubs, spend it on your future. Your future rich self. Use the entire amount to pay off that credit card (or two).
- Your Bonus: As above.
- Ever notice how that extra money from a pay raise disappears? Use the extra amount you get in your paycheck to pay off a credit card and you will notice that balance starting to disappear.

- Stop using your credit card(s).
- Create a budget and determine how much you have left over to pay down your debt.
- Pay the minimum payment on all your cards except the one with the lowest balance.
- Now, take the amount left over from your budget and ADD it to the minimum payment for that card. So if the payment is $25 and you have an extra $25 in your budget, then you would pay $50 to that credit card.
- When you have paid off that card add the $50 to the minimum payment of the next card, the one with the smallest balance now.
- Wash, rinse, repeat.
- To turbocharge your debt reduction, use the Simple Ways listed above too. If you get a bonus, pay off that debt quicker.

- Stop using your credit card(s).
- Create a budget and determine how much you have left over to pay down your debt.
- Pay the minimum payment on all your cards apart from the one with the highest interest rate.
- Now, take the amount left over from your budget and ADD it to the minimum payment. So if the payment is $25 and you have $25 in your budget, then you would pay $50 to that credit card.
- When you have paid off that card add the $50 to the minimum payment of the next card, the one that has the highest interest rate now.
- Wash, rinse, repeat.
- To turbocharge your debt reduction, use the Simple Ways listed above too. If you get a bonus, pay off that debt quicker.

Name | Balance | Interest Rate | Payment |
---|---|---|---|

Car Loan | $20,000 | 5% | $350 |

Credit Card 1 | $1,000 | 9% | $50 |

Credit Card 2 | $4,000 | 18% | $125 |

Debt Snowball | Debt Avalanche |
---|---|

Credit Card 1 | Credit Card 2 |

Credit Card 2 | Credit Card 1 |

Car Loan | Car Loan |

Using our example debts and $100 extra to pay each month.

Download our free Debt Snowball/Avalanche spreadsheet.

It's amazing to watch your debts decrease so fast. I used the Debt Avalanche personally when I was paying off my debts. I can tell you that it works and after you have cleared down a couple of your debts it starts working quickly. You and enter your debts, extra payments, and select which method you want to use. It will calculate the amount to pay on each debt and show you when each debt is paid off. I hope it comes in handy.

I know how scary it can be to be deep in debt and wondering if you can ever escape. I'm here to tell you that you can because I did it myself. I've gone from living pay check to pay check, hundreds of thousands of dollars in debt, to having cash in the bank, stocks, no debt and able to stop working for 6 months for a mini-retirement. If I can do it, then you can too.