How to pay off debt in three steps. (Plus a free debt snowball template inside!)

Your debt has to go. So, let’s get going!

I reached out to my crew in the How Do I Money Facebook group and asked a simple question about debt. (You should join!)

I asked, “When you started getting serious about paying off your debt, how did you feel before you got serious and after?

I got a few really great inspiring replies! (No surprise there, everyone in the FB group is wicked smart.)

Here’s a few of those inspiring replies just to get the blood pumping before we start paying off your debt.

I felt overwhelmed and then relieved. Was a huge weight off my shoulders. -Justin

I felt stressed, then relief. -Janeen

I felt left out, not having the extra disposable income, then i felt relief having my monthly obligations cut in half. -Derek (not me! A different Derek.)

Before, I felt we were just treading water. Afterwards, it was like a huge weight had been lifted off our shoulders due to having a plan. -Steven

I FINALLY feel determined. I’m tired of feeling hopeless about it so I’m making the decision to kick debt in the butt and feel resolved which I have never felt before about my debt. -Allicia

Blissfully ignorant and then impatient. -Jake

The stress and weight of ‘bleeding’ money on a monthly basis to make loan payments is what motivated me to pay my debt off as soon as possible. Working out a plan of how I was going to pay it all off – writing my first budget – was oddly overwhelming and calming in a way. As soon as I sent the final payment using the banking app on my phone, the huge weight I’d be carrying was lifted. I felt so lite on my feet that I couldn’t help but do a little dance right there in the kitchen. -Brendan

I felt stupid, then smart. Haha -Justin

I’m pumped! Let’s get started!!!

Feeling overwhelmed and stressed?

Want to feel relief?

Looking forward to the day you send the final payment and do a happy dance right there in the kitchen?

Don’t give up until you’ve followed these three steps.

Download the free debt snowball template mentioned in this post!

Step one – Organize your debts

It’s hard to make progress¬†when your debt information is spread out all over the Internet.

Having one place where you keep all the important information is crucial.

Collect and organize the following info. Keep it all in a file or folder you can find easily.

  • Website address for each account
  • Username and password info
  • Phone number for each account
  • Total debt balance for each debt
  • Minimum monthly payment
  • If you are behind, by how much?

Just collecting this information is a great first step in the right direction.

That was easy, let’s move on to step two.

Step two – List (and pay) your debts smallest to largest

Using the debt snowball method is best way to pay off your debts.

Here’s how it works:

  • List your debts in order from smallest to largest balance.
  • Pay the minimum on all debts except for the smallest.
  • Throw as much money as you possibly can at the smallest debt. Go fu4ing crazy!!!!! Go so crazy on your debt if someone saw you paying if off they might call the police.
  • When the smallest debt is gone, add the money you were paying on that debt to the the next (new smallest) debt.

Simple enough, now what?

Step Three – Keep going! It gets easier.

Keep up this debt snowball method until you are debt free.

I know it can be hard.

I know it sucks.

I know it feels like you aren’t making progress.

Here’s the good news…

It will get easier and it will go faster. As each debt gets paid down (and off) you will have more money available to pay off your debts faster. No matter where you are in your debt payment journey, it can only get easier, not harder. (As long as you are using the debt snowball plan and not taking on more debt.)

Paying off debt is progress.¬†I know it doesn’t feel or even look like progress, but it is! Every dollar you pay towards debt is a dollar you will NEVER have to pay towards debt again. Every debt you pay off is a 100% win. It can’t come back, you only have to pay that debt off once. Paying off debt (as awful and wasteful as it might feel) has the best return on investment possible.

Track your debt progress every month to see and feel the progress. Chances are it will be motivating to see your debts melting away. (Now might be a good time to re-read those comments at the top.)

Download your free debt snowball template!

If you’ve already collected all the info I talked about in this post you are like 93.2% ready to fill out this debt snowball template.

When you download this debt snowball template I’ll send a couple emails that will help you fill it out. You’ll love it.

Download the template, start kicking ass on your debt today and be in bed by 10:30.


5 Responses to "How to pay off debt in three steps. (Plus a free debt snowball template inside!)"

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