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Choose Your Method and Commit
What You'll Learn
- Create a complete inventory of your debts
- Choose your debt payoff strategy (snowball or avalanche)
- Build your personalized 90-day action plan
This Is Where Talk Becomes Action
You've learned about credit scores, debt types, payment strategies, and consolidation options. You have all the knowledge you need.
Now it's time to create your personal debt freedom roadmap—a clear, actionable plan to eliminate your debt once and for all.
The Power of a Written Plan
Research shows that people who write down their goals and create specific action plans are 42% more likely to achieve them than those who just think about what they want to do.
This lesson will guide you through creating your written debt payoff plan—step by step.
Step 1: Complete Your Debt Inventory
First, you need to know exactly where you stand. No guessing, no avoiding—just the facts.
Action: List Every Debt You Have
Get a piece of paper, open a spreadsheet, or use the space below. List every debt with these details:
- Creditor name (who you owe)
- Current balance (how much you owe)
- Interest rate (APR)
- Minimum monthly payment
- Debt type (credit card, loan, medical, etc.)
Include everything: Credit cards, car loans, student loans, personal loans, medical bills, money owed to family—everything.
Example Debt Inventory
| Creditor | Balance | APR | Min. Payment | Type |
|---|---|---|---|---|
| Visa Card | $3,200 | 19.99% | $85 | Credit Card |
| Target Store Card | $650 | 24.99% | $25 | Store Credit |
| Auto Loan | $12,000 | 5.5% | $290 | Installment |
| Student Loan | $18,500 | 4.25% | $150 | Student Loan |
| Medical Bill | $1,400 | 0% | $50 | Medical |
| TOTAL | $35,750 | — | $600 | — |
Facing the Number
Seeing your total debt in black and white might feel scary. That's normal. But here's the truth: you can't fix what you don't measure.
This number isn't a judgment—it's just your starting point. And starting points are where all great journeys begin.
Step 2: Choose Your Payoff Strategy
Now that you know what you owe, decide how you'll tackle it. You've learned two proven methods:
Debt Snowball
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Debt Snowball Method
How it works: Pay off debts from smallest balance to largest, regardless of interest rate.
Best for:
- People who need quick wins for motivation
- Those feeling overwhelmed by multiple debts
- Anyone who's tried and failed other methods
Your first target: The debt with the smallest balance.
Debt Avalanche
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Debt Avalanche Method
How it works: Pay off debts from highest interest rate to lowest, regardless of balance.
Best for:
- People motivated by math and optimization
- Those with high-interest debt (20%+ APR)
- Disciplined individuals who don't need quick wins
Your first target: The debt with the highest interest rate.
Action: Choose Your Method
Based on what you've learned, which method feels right for you?
Write it down: "I will use the _____________ method to pay off my debt."
Now reorder your debt list based on your chosen method:
- Snowball: Smallest balance to largest
- Avalanche: Highest interest rate to lowest
The debt at the top of your list is your first target.
Step 3: Calculate Your Available Debt Payment Money
How much can you put toward debt each month? Start with what you're already paying (total minimum payments), then look for extra money.
Where to Find Extra Debt Payment Money
Click for ideas
Ways to Free Up More Money for Debt
- Cut one or two expenses temporarily: Cancel subscriptions you don't use, reduce dining out, skip the premium coffee
- Sell items you don't need: Old electronics, clothes, furniture—turn clutter into cash
- Pick up a side gig: Drive for Uber/Lyft, freelance, dog-walking, tutoring—even $200/month helps
- Use windfalls: Tax refunds, bonuses, birthday money—put it all toward debt
- Redirect raises: Got a raise? Put the extra income straight to debt payoff
Every extra dollar counts. An extra $50/month can shave months (or years) off your payoff timeline.
Action: Calculate Your Monthly Debt Payment
Current minimum payments: $_______ (total from your debt inventory)
Extra money I can find: $_______ (from the ideas above)
Total monthly debt payment: $_______
This is the amount you'll allocate to debt every month. Put minimums on all debts except your first target—throw everything extra at that one.
Step 4: Set Your 90-Day Goal
Long-term goals are great, but they're not motivating day-to-day. That's why you need a 90-day goal—something achievable in the near future that keeps you focused.
🎯 Examples of 90-Day Debt Goals
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90-Day Debt Goal Examples
- "Pay off my $800 store credit card completely"
- "Reduce my Visa balance from $3,000 to $2,000"
- "Make 3 months of extra payments on my highest-interest debt"
- "Increase my total monthly debt payment from $400 to $500"
- "Eliminate 2 small debts using the snowball method"
Pick a goal that's challenging but achievable. Small wins build confidence for bigger goals.
Action: Write Your 90-Day Commitment
Fill in the blanks below and say it out loud (seriously—speaking it makes it real):
"In the next 90 days, I commit to paying off $_______ of debt by [specific action, e.g., 'paying off my Target card' or 'reducing my Visa balance to $2,000']. I will do this by putting $_______ toward debt every month."
Write the date 90 days from now: _____________
Mark it on your calendar. This is your first milestone on the road to debt freedom.
Step 5: Set Up Your Payment System
The best plan in the world doesn't work if you don't follow through. Automation and systems remove the need for willpower.
Automate Your Debt Payments
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How to Automate Success
- Set up autopay for minimum payments on ALL debts. This protects your credit score—you'll never be late.
- Schedule a recurring transfer for your extra payment. On payday, automatically move your "extra debt money" to a separate account.
- Make your target debt payment manually each month. This keeps you engaged and lets you see progress.
- Set calendar reminders. Check your debt balances monthly and celebrate progress.
Your Debt Freedom Checklist
Before you finish this course, make sure you've completed these action steps:
| Action Item | Status |
|---|---|
| ✅ Created a complete debt inventory | ☐ Done |
| ✅ Chose my payoff method (snowball or avalanche) | ☐ Done |
| ✅ Ordered my debts according to my chosen method | ☐ Done |
| ✅ Calculated my total monthly debt payment | ☐ Done |
| ✅ Set my 90-day debt payoff goal | ☐ Done |
| ✅ Set up autopay for minimum payments on all debts | ☐ Done |
| ✅ Marked my 90-day check-in date on my calendar | ☐ Done |
| ✅ Checked my credit score (free) | ☐ Done |
| ✅ Reviewed my credit report for errors | ☐ Done |
Your Debt-Free Future Starts Now
Imagine what life will be like when you're debt-free:
Your Debt-Free Life
No more minimum payments draining your paycheck every month.
No more stress about interest piling up.
No more shame or anxiety when you check your bank balance.
Just freedom—freedom to save, invest, travel, give, and live the life you want.
That future is possible. It starts with the decision you make today.
Final Action: Make Your Commitment Public
Tell someone about your debt payoff goal. Share it with a friend, family member, or partner. When you say your goal out loud to another person, you're 10x more likely to follow through.
Say this: "I'm working on paying off my debt. My first goal is to [your 90-day goal]. I'm using the [snowball/avalanche] method and I'm committed to making it happen."
Accountability changes everything.
You've Done the Work—Now Trust the Process
You have a plan. You have the tools. You have the knowledge. All that's left is execution.
Debt freedom doesn't happen overnight. It happens one payment at a time, one month at a time, one small win at a time.
Stay consistent. Stay focused. And remember: Every dollar you pay toward debt is a dollar invested in your freedom.
You've got this. Now go take control of your financial future.
Next Steps
Ready to keep building your financial foundation? Here's what to explore next:
- Course 3: Save and Grow — Learn how to build an emergency fund and start investing while paying off debt
- Course 5: Introduction to Investing — Once your high-interest debt is under control, discover how to make your money grow
- Course 6: Protecting Your Financial Future — Safeguard your progress with the right insurance and planning
Congratulations on completing "Tame Your Debt: Credit and Debt Management." You've taken a huge step toward financial freedom. Keep going—your future self will thank you.