<topic sku="core" tNum="288772" author="a-gabr" xmlns="x-schema:hhTopicSchema.xml"><index><title>Create a debt reduction plan</title><category>debtplan</category><klink type="prcdr">How do I create a debt reduction plan?</klink></index>
<content>
<extend>
<tease>Why?</tease>
<reveal>
<p>You can take control of your finances and reduce or eliminate your <glossary>debt</glossary> with a debt reduction plan.</p>
</reveal>
</extend>
<ol>
<li>On the <emph>Planner</emph> menu, click <emph>Debt Reduction Planner</emph>.</li>
<li>Click <emph>Get Started</emph>.</li>
<li>If the accounts you want to track don't exist in Money, click <emph>New Account</emph>, and then follow the instructions on the screen.</li>
<li>Click each account you want to track under <emph>Debt Accounts Not in Debt Plan</emph>, and click <emph>Move Up</emph>. These will generally be your credit card debt and other high-interest loans.</li>
<li>Click <emph>Next</emph>.</li>
<li>For <emph>Base my plan on</emph>, click an option for your plan. You can base your plan on how much you want to pay each month and have Money tell you how soon you will be out of debt, or vice versa.</li>
<li>Depending on your choice in Step 6, the <emph>Enter your monthly allocation for debt</emph> box or the <emph>Enter the date you want to be out of debt</emph> box displays. Enter the amount or the date.</li>
<ul>
<li>Move the slider to experiment with different amounts or dates. The <emph>Results</emph> section shows the effect on your debt plan.</li>
</ul>
<li>To make an extra payment, enter an amount in the <emph>Making a One-time, Extra Payment</emph> box.</li>
<li>Click <emph>Next</emph> to view your payment schedule.</li>
<li>To see a different view of your debt reduction plan, in the <emph>View</emph> box, click <emph>Payment Schedule Chart</emph>, <emph>Payment Schedule by Month</emph>, or <emph>Payment Schedule by Account</emph>.</li>
<li>Click <emph>Next</emph> to see a list of recommended debt payments.</li>
<li>To schedule a payment, select the check box next to the account.</li>
<li>Click <emph>Finish</emph>.</li>
</ol>
<p>Money will schedule a bill for each debt payment you check. If you already have a scheduled bill for the credit card or loan company, click Bills & Deposits List on the Accounts & Bills menu. Verify that the bill created by the Debt Reduction Planner is there, and then delete the bill you created.</p>
