Debt Payoff Timeline: determining when you will become Debt Free
You’ve made the commitment to break up with your debt. To round up all those lingering, outstanding debts, put them in a group and pick them off, one-by-one. Now the #1 question is this, “When will I be Debt Free?”.
If you are using your Debt Free Journal to build your plan, you will answer this question at the end of the “Where am I today” section under “Timeline” (If you haven’t picked up a copy, get one here.) At this point in the Journal, you’ve lined out each debt, the total of each debt and their monthly payment, you’ve created a monthly budget, and you know how much extra you can throw toward debt each month. From here, you will use a Debt Timeline tool to establish your debt payoff order, when you will pay each debt if you follow your plan, and your Debt Free Date!
You can do this manually, but it’s much easier to use one of these awesome, free online calculators. Pick either one and get rolling.
Nerd Wallet: Debt Snowball/Avalanche Calculator
Ramsey Solutions: Debt Snowball Calculator
Once you've completed this and transferred the plan into your Debt Free Journal, you'll have your Debt Free Date! This is a hugely defining moment! You now have a strategy to payoff your debts and your Debt Free Date. Getting to this point is already a big milestone, but you are just getting started. It’s time to start attacking your first debt!
You’ve got this! 💪