Build a Debt Payoff Plan You Can Maintain

Sized for an ordinary bad month — not your best one Sized for an ordinary bad month — not your best one

One page, every debt

List every balance, APR, minimum, and due date — including store cards and medical bills. A forgotten minimum becomes a late fee. List every balance, APR, minimum, and due date — including store cards and medical bills. A forgotten minimum becomes a late fee.

The 24-month repeat test

Could you pay this total for 24 months without new borrowing? If not, it is too high — whatever a calculator says. Could you pay this total for 24 months without new borrowing? If not, it is too high — whatever a calculator says.

$500 a month clears $12,800

Example from our guides: $300 of minimums plus $200 extra clears $12,800 of hypothetical debt in about 31–32 months. Example from our guides: $300 of minimums plus $200 extra clears $12,800 of hypothetical debt in about 31–32 months.

First, a $500–$1,000 cushion

Many households keep a small starter emergency fund so one car repair does not go straight back onto a card. Many households keep a small starter emergency fund so one car repair does not go straight back onto a card.

Write the setback rules now

Decide in advance: a bad month pauses the extra payment, never the minimums. Rules made calmly beat decisions made in a panic. Decide in advance: a bad month pauses the extra payment, never the minimums. Rules made calmly beat decisions made in a panic. Read the full guide