Step 4: Create and Execute your Debt Elimination Plan

This next step focuses mostly on your list of debts. Once you have this list, do the following.

1. For each creditor, list how much you owe them, the minimum payment, and the interest rate.


2. Decide the order in which you wish to pay off the debts and re-write your list in that order.


3. Pay the minimum payment on everything but the first debt on the list.


4. Find a way to pay more than the minimum on the first debt on the list. To do so, you may need to find other expenses you can eliminate. Here is where your list of bills comes in handy. Are there any services you pay for that you aren’t using? Are there any that you can do without? If you cannot find any obvious sources of cash, start looking at your incidental expenses. Consider postponing purchases, canceling subscriptions, clipping coupons, anything to free up additional money to pay off your debts.


5. Once the first debt is paid off, do the same with the second debt in the list, using the money from the first debt on the list to pay off the second debt even faster.


6. Keep repeating using money saved from previously paid off debts to accelerate your current debt’s payments until all your debts are eliminated.

Need more in-depth help? Click here to see more information about the "Debt-To-Wealth" debt elimination program.