Create a Get Debt-Free Plan

The ideal plan includes steps to become debt-free and milestones to reach along the way.

Get an accurate overview of your debt
Gather your financial documents and make a list of all your monthly payments, using a spreadsheet or notebook. Include the name of the creditor, interest rate, outstanding balance, and minimum monthly payment.

Decide which debt to pay off first
In many cases, it makes the most sense to pay off the debt with the highest interest rate first, while making the minimum payment on the rest. Once the highest interest-bearing debt is paid off, choose the debt with the next highest interest rate and apply your payment from the paid off debt to this balance, while continuing to make the minimum payment on the rest.

Make it easier to pay off your unwanted debt by signing up for automatic payments
Be certain that you’ll never forget a payment while you focus on paying off the debt with the highest interest.

Be sure to keep your debt in check
Create a budget and use cash or your debit card to make purchases.