In the last two worksheets you were given the ability to track your spending and create a
balanced spending plan. The next step in total financial fitness is to eliminate all of your debt
completely.
First, list all of your debt obligations on the chart below. The list should include any and
all people or companies that you owe money to (e.g. credit card balances, store accounts, mortgage,
auto loan, student loans, etc.)
Debt Obligations
| CREDITOR |
BALANCE
OWING
|
INTEREST
RATE (%)
|
MONTHLY
PAYMENT
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As you review the list above, compare it to your spending plan. Make sure that you included
the monthly payment amount for each of these debts. If you didn’t, you’ll want to make those
adjustments now so that you do not overspend your income. If you are using Mvelopes Personal, the
system automatically sets up repayment envelopes for your credit cards and you should already have an
envelope created for each of your other debts. Any adjustments made in Mvelopes will be quick and
easy.
Once you have updated your spending plan, you can now look at how to quickly eliminate these
debt obligations. In the chart below, prioritize the list from above in the order you would like to pay
them off. This can be done by interest rate or balance owing. We recommend listing them by placing the
highest interest rate at the top, with others in descending order.
Debts Listed in Order of Payoff
| CREDITOR |
BALANCE
OWING
|
INTEREST
RATE (%)
|
MONTHLY
PAYMENT
|
ROLL-DOWN
AMOUNT
|
Debt 1: (debt to payoff first) |
|
|
(a)
|
(a)
|
| Debt 2: |
|
|
(b)
|
(a+b)
|
| Debt 3: |
|
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(c)
|
(a+b+c)
|
| Debt 4: |
|
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(d)
|
(a+b+c+d)
|
| Debt 5: |
|
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(e)
|
(a+b+c+d+e)
|
| Debt 6: |
|
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(f)
|
(a+b+c+d+e+f)
|
| Debt 7: |
|
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(g)
|
(a+b+c+d+e+f+g)
|
Debt 8: (debt to payoff last) |
|
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(h)
|
(a+b+c+d+e+f+g+h)
|
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Totals
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-
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