[Peelout]

Step 2: Sort Your Debts

Now, sort your debts from the smallest amount to the largest amount. This will help you decide which debt to pay off first.

Step 3: Start Paying Off Your Debts

From your monthly salary or income, pay your regular monthly payments (EMIs) for things like housing loans, car loans, or personal loans. Make sure to keep some extra money for your monthly expenses.

Still have some money left over? Great! You can use this extra amount to pay off your smallest debt faster.

Step 4: Celebrate Your Wins!

Let’s say you paid off one of your debts, like a loan from a friend, in 3 months—congratulations! It’s time to celebrate! Go watch a movie, eat out, or do something fun.

Then, repeat Steps 1 to 4 until you are free from all your debts!

Important Tips to Remember:

• Focus on clearing your debt. Make this your top priority.
• Don’t use credit cards. Avoid adding new debt.
• No new loans. Try not to borrow more money.
• Spend on needs, not wants. Save money by cutting out unnecessary expenses.
• Don’t eat out often. Save this for special celebrations only!