How the debt payoff priority technique works

This is how the debt payoff priority technique should be done practically:

1. Make a table with the following columns and write your figures.( as shown in the picture above)

2. The payoff priority ranking is determined by the number of months needed to clear the debt if you make the minimum payment.Since paying off the appliances requires the least number of months, that is ranked as number 1.

3. Start making minimum payments to all of your debts.

4. For the debt with the payoff priority ranking one:

Pay the minimum amount+10% of the total of all the minimum payments(or 10% of the total of all the payments that you are currently paying)

5. Once your clear the debt with the payoff priority ranking 1, leave a holiday month where you do not make the extra payment.

6. Then take the debt with the payoff priority ranking two and do the same as in step 4 and step 5

7. Continue this till you pay off all your debts.

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One thought on “How the debt payoff priority technique works

  1. Michael Robert Brown says:

    This is precisely the important information I’d been searching for. Incredible blog. Very inspirational! Your posts are so good and also detailed. The links you come with are also very beneficial as well. Many thanks 🙂

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