One Debt Down

How to complete One Debt Down

Paying a debt down to zero is different from chipping away at five balances forever: one line item disappears completely, its monthly payment returns to you, and you prove the whole pile is beatable. That momentum is why payoff methods start with a full kill rather than spreading extra payments around.

1. Write down every debt with its balance, interest rate, and minimum payment.
2. Pick one target: the smallest balance if you need a quick win, or the highest interest rate if you want to save the most money.
3. Pay minimums on everything else and throw every spare dollar at the target.
4. For loans, request an official payoff quote before the final payment — interest accrues daily, so the payoff amount differs from the displayed balance.
5. Confirm the zero balance in writing, then redirect the freed-up payment toward the next debt.

Tips

• Keep a paid-off credit card open with a zero balance; closing it can lower your credit score.
• Check for prepayment penalties before making large extra payments.
• Sell one unused thing and put the proceeds toward the target to reach the finish faster.

What counts as done

A statement or payoff letter showing the balance at exactly zero.