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Course 21 · Money course 04

Pay Off Debt & Take Control of Your Money

Turn scattered balances and rising interest into a stable cash-flow plan and a payoff sequence you can actually sustain.

Before you start

Use fictional statements, or private records you have permission to use, for loans, cards, medical debt, collections, and buy-now-pay-later accounts.

See everything you’ll need
What you’ll leave with

A verified debt inventory, protected minimum payments, a payoff calendar, creditor scripts, and a post-debt plan.

Start course Start without an account. Sign in to save lesson progress across devices.

Your project

Start with the practice files. Build your project one lesson at a time.

Practice files are free without an account. Sign in to save your project record in My Proof: a description, checklist, and optional work link. Keep the original files in your own app or notebook; saving a project record does not upload them.

  1. Get your materialsDownload the practice worksheetUse the downloadable worksheet or toolkit alongside the lesson instructions.
  2. Make your projectView the project checklist Work in your own notebook, document, or software. Use the supplied practice examples when you prefer.
  3. Keep a private recordSave a project record Sign in to save a description and checklist, then return to update them.
Optional course overview

Watch an introduction.

This overview from Khan Academy introduces ideas you’ll practice in the lessons.

Watch directly on YouTube
Khan AcademyDebt PayoffYouTube
Course handbook

Know the route before you begin.

Here’s what you’ll need and what you’ll make. You can return to this guide during any lesson.

Who this is for

People who can make at least some payments but need one accurate view of their debts, a defensible priority order, and a routine that prevents new balances.

Prepare before lesson one
  • Use fictional statements, or private records you have permission to use, for loans, cards, medical debt, collections, and buy-now-pay-later accounts.
  • Use 60 days of fictional or permitted checking transactions and a calendar of income and bill dates. Written payment plans and practice calls are sufficient.
  • Do not share account numbers, passwords, Social Security numbers, or other credentials in course notes.
Your final project

Finish with proof you can use.

Build a debt-control binder containing a verified balance table, minimum-payment calendar, chosen payoff method, 90-day forecast, communication log, and written rule for where freed-up payments go next.

Save a project record in My Proof
See project checklist and review criteria
  • A dated debt inventory with a source document and verification status for every row.
  • A 30-day cash-flow calendar that funds essentials, a starter buffer, and every feasible minimum payment.
  • A ranked payoff queue with the reason for the method and a clearly named first target.
  • A practice creditor-call script, the largest payment the budget can afford, and a call log with written follow-up tasks.
  • A 90-day payoff forecast with payment dates, projected balances, and one measurable milestone.
  • A post-debt routing rule, credit-use policy, and quarterly review date.
Three ideas to help you along the way
Three useful ideas

The rules behind the steps.

01

Stabilize before accelerating

Protect housing, utilities, food, transport, insurance, and required minimums before sending an impressive extra payment that causes another emergency.

02

One target, every minimum

Keep all required payments current, then concentrate available extra cash on one clearly chosen balance.

03

Document every promise

A phone conversation is not a new agreement until terms, dates, amounts, and consequences are confirmed in writing.

What do these words mean?
Key words

Key terms worth knowing.

APR
The annualized cost of borrowing, including interest and certain fees, used to compare credit products.
Debt avalanche
A payoff order that directs extra money to the highest interest rate first.
Debt snowball
A payoff order that directs extra money to the smallest balance first.
Hardship plan
Temporary terms a creditor may offer after reviewing a borrower’s financial difficulty.
Your route

6 lessons.
One useful project.

Work in order the first time. Each lesson makes something the next lesson can use.

  1. 1
    Up next

    Inventory every balance

    Replace estimates and forgotten accounts with a statement-backed list of every obligation.

  2. 2
    28 min

    Stabilize cash flow and minimums

    Prevent late fees, service loss, and fresh borrowing before accelerating payoff.

  3. 3
    24 min

    Choose avalanche or snowball

    Select a payoff order using both interest math and the behavior you can maintain.

  4. 4
    22 min

    Contact creditors safely

    Ask for workable terms without agreeing to unaffordable promises or losing documentation.

  5. 5
    22 min

    Run 90-day payoff sprints

    Convert a long payoff estimate into short cycles with visible milestones and controlled extra payments.

  6. 6
    12 min

    Build post-debt guardrails

    Redirect freed-up payments toward resilience so the same balances do not quietly return.

Use the tools

Tools to help you practice.

See all tools
calculator

Debt cash-flow calculator

Test the monthly cushion available for minimums, buffer, and the next extra payment.

Text worksheet

Your course practice worksheet

A text worksheet with this course’s lesson tasks, space for your answers, and a project checklist.

Source transparency

Sources and further study.

Explore the references behind the lessons and take your learning further. Source notes explain access and reuse.

Consumer.gov — Debt explained
Consumer.gov — Getting help with debt
CFPB — Zero interest and deferred interest
Ready when you are

Start with the first useful move.

You’ll always know what to do, what to make, and where to go next.

Start lesson one