First, list out all of your debts and rank them according to one of three methods: highest interest rate (debt avalanche method), lowest total balance (debt snowball method), or most emotional.
Then, start aggressively paying off debt #1, while making minimum payments on the others.
Work your way down the list over the course of weeks, months, years until you are debt free.
Now a company called Ready For Zero wants that process to be even easier. Their online based tool let’s you securely sign up and provide your credit card details (they pull your total debt from your credit file and they pull details based on the credit card account credentials you provide).
Once you’ve signed up, they suggest a debt reduction plan (based on the debt avalanche), and give you suggestions for paying off your debt quicker, including consolidating your debts with Lending Club for a lower rate (this is partly how they make money).
They also have email reminder to keep you on track each month and to let you know if the plan has changed based on various factors. Here’s what the dashboard looks like:
Ready For Zero is free and easy to sign up. Literally within 5 minutes you could have your very on debt reduction plan in a pretty, user-friendly online tool. If you are looking for a single, simple solution to help you focus on debt and smash it, I suggest you check out Ready For Zero (www.readyforzero.com). Once you check it out, come back here and let me know what you think.