There are two methods: Avalanche (paying off your highest interest debt first) or Snowball (paying off the smallest debt first).

You will pay less money total via Avalanche, but most people prefer the Snowball. Just choose your favorite. It doesn’t matter which.

And here’s what it looks like:

1. Determine ALL the debts you owe and the payments required.

2. If you have a partner, realize and agree that debt is a "we" problem.

3. Reduce "Want" spending by 10% (or more if you'd like).

4. Don't take any new credit.

5. Coast and pay it all down as money comes in.

What if you have TOO MUCH debt (more than 36% of your take-home pay)?

1. Contact creditors (these people might help you and adjust agreements)

2. If you'd like to supercharge your payment, try increasing income (side hustle, part-time)

3. Consider debt-consolidation (condensing multiple small loans under one large loan for a lowered interest rate)

4. Consider a credit counseling agency (a nonprofit company that helps educate you and negotiate debts on your behalf — usually free or low cost)

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#themillionimpactmission

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This post is for informational purposes only and should not be considered specific investment advice.