Now that you see the benefits of paying off your debt, let’s talk about HOW you are actually going to do it using a system I created(and used) to pay off $30,000 of credit card debt.

True story! You can watch it here.

Okay, let’s break it down so you can get a plan for yourself on how to tackle your debt

Step 1: SURVEY THE LAND

This is where you have to get intimately acquainted with your debt

You need to know:

Who you owe
How much you owe them
How much is the interest rate
What the minimum payment is
When is the due date for the minimum payment

ACTION PLAN: If you need some help you can use the printable worksheet or use the excel sheet I actually used myself during the Debt SLAYER System.

If the last lesson’s amortization chart got you freaked out, then you should run the amortization for your current debts.

When you see how much your credit card company or loan provider is making off of you, it’s guaranteed to get you angry enough to do something about your debt … RIGHT NOW.

Step 2: LIMIT AND LEVERAGE

Alright. You’re angry enough to do something about your debt. That’s great!

But before we jump right into throwing all your money to the credit card company, let’s make some changes first … so we can stop the debt pile from getting bigger, and so we can find the money to actually make payments.

You have to limit how much credit you are using.

That means – removing your credit cards from your wallet, deleting your saved credit cards from Amazon prime, whatever it takes to stop yourself from spending more.

Paying off debt is doable, but it can be hard.

And if you’re a person where hard things make you want retail therapy, then you have to protect yourself from yourself.

Next is leverage.

See what funds you already have that you can put on your debt payments

And if you need to find some more, check out these two documents to help you save and earn more money.

–> SAVE AS MUCH AS $500

–> EARN AN EXTRA $500

Step 3: AUTOMATE PAYMENTS

I’ve said it before and I’ll say it again.

AUTOMATION IS YOUR FRIEND.

ALWAYS pay at least the minimum payments on your debts so you can be in good standing with your creditors.

When you don’t pay at least the minimum payment, creditors can report you to the credit bureau – lowering your credit score – which can allow other credit card companies to increase their interest rates (costing you more in the long run).

Not to mention creditors can sue you, and some can even garnish your wages to ‘force’ you to pay.

Automating your minimum payments protects you while working on improving your financial situation.

Step 4: YES, YOU HAVE TO PAY EXTRA

Now that you’ve found more money to put on your debts and you’ve covered your bases (protected your credit) by automating the minimum payments, then you are now ready to put those dollars to use by paying extra.

Step 5: EVALUATE OFTEN

Making a plan is great. Checking in and making sure the plan is working is even better.

So check in with yourself every week and every month to ensure things are going as planned, what worked well for that week, what didn’t work, or what you may be trying next.

Step 6: RAMP UP WHEN YOU CAN

When it comes to paying off debt, sometimes you can only move as fast as your circumstances allow.

Maybe you’re moving into your first apartment and need your cash for your security deposit plus your first and last month’s rent.

Maybe you’re waiting for your tax return so you can pay down a lump sum of debt or maybe you’re still working your part-time gig and won’t start your ‘real paycheck job’ for 2 more months before you can pay more.

Whatever the situation is, keep an eye out for opportunities when (and where) you can ramp up your debt payoff plans.

The Money School: Basic Rules For Winning With Money