Debt balances organized into a payoff plan

Debt • ~6 min

Prioritize high-interest debt without ignoring cash flow

Expensive balances can grow quickly, but the plan must still protect essentials and a small emergency cushion.

Expensive balances can grow quickly, but the plan must still protect essentials and a small emergency cushion.

Why it matters

Sending every available dollar to debt can backfire if the next repair goes back on a credit card.

What to focus on

Protect essentials
Keep a starter cushion
Target expensive balances

ExampleA household might keep a $1,000 starter fund while directing the rest of its monthly surplus to a 27% card.

Put it into practice

Calculate monthly surplus
Choose a cash floor
Set the extra payment

Write down one decision and schedule a short review. Small, repeatable steps are easier to maintain than a one-time overhaul.

Educational information only. Money in Reach does not provide financial, investment, tax, insurance, credit, mortgage, or legal advice.

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