The Debt Reduction Plan…
…A Step-by-Step Formula That Works

Use this Debt Reduction Program and Forms to Get Out of Debt

Debt Elimination is Attainable for You

Reducing your debt and eventually eliminating it are personal finance essentials that will lead you to financial freedom.

These steps and forms will systematically help you with debt elimination.

This simple debt elimination plan, if followed, will strategically and systematically help you do what many people are unable to do themselves.

To understand some of the keys to success with your debt elimination program, please click here.

Use the Debt Elimination Worksheet to Make Your Debt Go Away

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Click here for you free debt elimination paper forms.

Click here for your free debt reductioncomputerized forms.

Using the Debt Reduction Forms:

• Debt Elimination Step #1: List all you debts for smallest to largest. List the amount you owe, the interest rate and the minimum monthly payment.
  
  
• Debt Elimination Step #2: Add to get two totals: the total the amount you owe and the total of minimum monthly payments.
  
  
• Debt Elimination Step #3: Ask yourself, how much money are you willing to commit each month to debt reduction?

  You will have the best success with determining this amount and allocating it each month if you develop and use a Spending Plan (budget).
  
  

• Debt Elimination Step #4: Pick which debt to eliminate first…

  There are two different philosophies as to which debt to pay off first. Experts disagree as to which of the following two debt elimination strategies is most effective. We recommend the second strategy, but want to show you both…

  Debt Elimination Strategy A: If you want to pay the least total amount of interest, then begin by paying off the debt with the highest interest rate first.

  When that one is paid off completely, then work on the one with then next highest rate and so on.

  This will cost you less, but it is more difficult.

  You will see why in a moment.

  Debt Elimination Strategy B: This other strategy, which is the one that we recommend, is to take the debt with the lowest total amount owed, and pay off that one first, and then continue next with the next lowest amount of debt owed.

  You will have the greatest chance for success at sticking with your debt reduction plan using this method.

  That’s because you will feel a great sense of accomplishment when you eliminate each debt.

  Since you began with the lowest total amount owed, you will have the earliest success and that will make you very satisfied. This will motivate you to stick with it until you are completely debt-free.

  No matter which debt elimination strategy you use, when you pay off a debt completely…CELEBRATE!
  
  

• Debt Elimination Step #5: Take the amount that you decided on in step #3 (the amount you are willing to commit to debt repayment) and add that to your minimum payment on the debt you decided to eliminate first.

  Pay the minimum amounts on all the other debts each month.
  
  

• Debt Elimination Step #6: When you have paid off the debt #1, celebrate. Then the next month, take the amount you were paying towards debt #1 (it’s minimum payment PLUS your debt repayment amount form step #3).

  This now becomes your new, greater amount for monthly debt repayment. This will continue to build as you pay off each debt thus accelerating your debt elimination plan. Take that amount and add it to the minimum payment for debt #2.

  You are continuing to roll the amount you were paying on the last debt into the next debt.
  
  

This Debt Elimination Plan Will Work if You…

• Are disciplined to incur no new debt
• Have the discipline to find additional money in your budget for debt reduction
• Remain committed to debt elimination

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