Definition
A strategy for paying down your debts over time, often including budgeting, prioritizing high-interest debt, and making extra payments when possible.
What to consider
- Create a clear, step-by-step plan to eliminate your debt.
- Focus on one debt at a time to build momentum.
- Regularly review your progress and adjust as needed.
Real world scenarios
- Gabby outlines each debt in a spreadsheet, targeting the highest-interest one first. She allocates extra cash to speed up the payoff process.
- Contributing extra funds every payday helps Luca chip away at his loan balances faster, reinforcing a disciplined approach.
- Adrian modifies his payoff plan after receiving a bonus at work. He applies the windfall to reduce principal on his largest debt.
Related terms
Related Playbooks
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