Now is the time to create a plan to pay off your debts and feel more confident. I personally love the idea of tackling the smallest debt first. Here’s how:


Look at All Your Debts. 

Gather up all bills and overdue notices that have been accumulating and be sure you’re well-versed in how much you owe and to whom.

Find the Smallest Balance.

Check your bills to find the smallest balance. This will be the first payoff that you tackle with your plan. Remember that while you pay down that amount, you still need to make the minimum payments on your other accounts to keep them current. Use money that might have otherwise gone to entertainment, clothing, or eating out to send extra payments to your bill with the smallest balance. Eliminating that balance becomes your first priority after your basic needs are met.

Utilize Extra Funds.

Whether you got a check from Grandma on your birthday, a bonus at work, or any other extra funds, use them to pay down your balance in addition to what you’re already paying. It means you get to eliminate your debts that much faster.

Move to the Next Balance.

Once you’ve paid off an entire account – no matter how small – pat yourself on the back. You have taken a solid step toward regaining control of your debt. Now it’s time to move onto the next largest balance.


No, not with a new pair of shoes or other costly reward. But each time you pay off a balance, treat yourself as a way to encourage and continue your good behavior. Part of feeling comfortable with money is acknowledging that it’s not your enemy – the same money that kept you imprisoned before will be the key to your freedom. You can draw yourself a hot bath, borrow a book that you’ve been dying to read for a night in, catch some live music in the park, go for a hike – anything that gives you a chance to bask in and reflect on your progress.




Apply for a loan today!

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