Debt Prioritization Quick-Start Checklist

Gather Your Debt Details

• List each debt with the creditor name.
• Record the current balance for each debt.
• Note the annual percentage rate (APR) for each debt.
• Write down the minimum monthly payment required for each debt.
• Identify any fees or upcoming rate changes.

Calculate Monthly Interest Costs

• Convert each APR to a monthly rate (APR ÷ 12).
• Multiply the monthly rate by the current balance to get monthly interest.
• Record the interest amount next to each debt.
• Sum all monthly interest amounts to see your total interest cost.

Choose a Payoff Strategy

• For the Snowball method: rank debts from smallest to largest balance.
• For the Avalanche method: rank debts from highest to lowest APR.
• Select the method that matches your motivation style.
• Mark the top‑ranked debt as the “focus debt.”

Set Your Payment Plan

• Determine how much extra money you can add to the minimum payments each month.
• Allocate the extra amount to the focus debt while continuing minimum payments on the others.
• Calculate the new payoff month for the focus debt using an online loan calculator.
• Write down the expected payoff date for the focus debt.

Track Progress Monthly

• At the end of each month, update the balance of each debt.
• Re‑calculate monthly interest for any remaining debts.
• If the focus debt is paid off, move to the next debt in your chosen ranking.
• Adjust the extra payment amount if your income or expenses change.