The first step in our Financial Freedom Plan is to complete the Debt Repayment Plan. This means that you will list your debts in order from lowest to highest balances. If you have two similar balances, pay off the one with higher interest rate first. Begin paying more towards the lowest balance first until you pay it off completely, then apply that payment to the next debt. Work your way down the list until you have paid off all debt. This is using the Snowball Method of Debt Repayment.
Some people prefer to pay off their debt with the Interest Rate Method. This means you will pay off the highest interest debt first, even if the balance is higher. If you choose this method, you will fill our your Debt Repayment Plan sheet by listing the highest interest rate debt all the way down to the lowest interest rate debt. Many people prefer the Snowball Method of Debt Repayment because they feel like they are checking debts off their list faster. Only you know your personality and which repayment plan method is the best for your family.
Debt Repayment Plan Printables
Utilize our free printables below to organize your debt and keep track of debtors and amounts. First, you will need to gather all of your credit card and loan statements. You may need to contact your creditors to get your most recent interest rate percentages. Make sure to print all of the printables in our Family Binder section of the site. We used these same forms as part of our Debt Free Journey. Look for our monthly updates on how we paid off $50,000 in debt in less than a year, and how we are working towards paying off our mortgage and living a debt free lifestyle.
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