Learn about the Debt Reduction Planner

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The Debt Reduction Planner encourages you to:

• Pay off the highest-interest debt first (typically, credit card debt).
• Pay the minimum monthly payment on all other debts.
• When the highest-interest debt is paid off, work on the next highest-interest debt.
• Whenever possible, make an extra payment towards your debt.
• Continue in this fashion until all your high-interest debt is paid off.

You can include any type of debt in your plan, from credit card debt to a loan from a friend. However, most experts recommend paying low-interest debts, such as your home mortgage loan, on the regular payment schedule. It makes more sense to have your money earn interest on an investment than to use it to pay off a low-interest loan.

Money 99 Financial Suite only: Once you create a debt plan, you can get a quick view of your remaining debt by going to Loans & Debts in the Lifetime Planner.