How to pay off debt
The plan matters less than the amount you can sustain. Pick an order, automate the minimums and review monthly.
What matters here
- List every debt with balance, rate and minimum
- Fix a monthly amount above the minimums
- Choose an order and write it down
- Keep the minimums running on everything else
- Review the plan monthly, not weekly
The list
Balance, interest rate, minimum payment and due date for each debt. Without the rates you cannot compare, and without the due dates you risk a missed payment that costs more than the interest you were optimizing.
Two common orders
Highest rate first costs less overall. Smallest balance first produces faster wins and is easier to sustain. Both work, and the one you will actually keep is the right one for you.
Automate the minimums
Set every minimum to automatic on its due date. The extra payment is the part that needs attention; the minimums should not depend on remembering.
Frequently asked questions
Keep reading
- What is a daily planning app?A daily planning app helps you decide what to do today and see how it fits the weeks ahead. Here is what separates a daily planner from a task dump.
- What is a watchlist?A watchlist is a personal list of films, series or other media you intend to watch, usually with a note on why it caught your attention.
- What is Markdown?Markdown is a plain text way of writing formatting with simple characters, such as a dash for a list or two asterisks for bold.
Turn talk into a plan
Capture a thought in plain language and let Prysm Note shape it into tasks and a timeline.
Disclaimer
This page is general information, not professional, legal, financial or medical advice. It describes common ways of working and how Prysm Note approaches them. Software changes over time, so details may differ from what you see in the product. Any product, company or brand names that appear are the property of their respective owners and are used only for identification. We do not claim any endorsement or affiliation. Where we compare approaches, we aim to describe each one honestly, including where a different approach may suit you better. Try the tools that matter to you and judge for yourself.