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.
Course 21 · Money system 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.
What you’ll leave with
A verified debt inventory, protected minimum payments, a payoff calendar, creditor scripts, and a post-debt plan.
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Watch first
A useful primer before lesson one.
This video is published by Khan Academy. It complements the Life Starter sequence; it does not replace the work inside the lessons.
Watch directly on YouTubeKhan AcademyDebt PayoffYouTube
Course handbook
Know the route before you begin.
This is the working brief for the full course: who it serves, what to prepare, what good work looks like, and the language you will use along the way.
- Collect the latest statement for every loan, card, medical balance, collection, and buy-now-pay-later account.
- Download 60 days of checking transactions and bring a calendar with all income and bill dates.
- Do not share account numbers, passwords, Social Security numbers, or other credentials in course notes.
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.
Three operating principles
The rules behind the steps.
Stabilize before accelerating
Protect housing, utilities, food, transport, insurance, and required minimums before sending an impressive extra payment that causes another emergency.
One target, every minimum
Keep all required payments current, then concentrate available extra cash on one clearly chosen balance.
Document every promise
A phone conversation is not a new agreement until terms, dates, amounts, and consequences are confirmed in writing.
Working vocabulary
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 routeSix lessons.
Six lessons.
One finished outcome.
Work in order the first time. Each lesson makes something the next lesson can use.
- 1Up next
Inventory every balance
Replace estimates and forgotten accounts with a statement-backed list of every obligation.
- 230 min
Stabilize cash flow and minimums
Prevent late fees, service loss, and fresh borrowing before accelerating payoff.
- 326 min
Choose avalanche or snowball
Select a payoff order using both interest math and the behavior you can maintain.
- 431 min
Contact creditors safely
Ask for workable terms without agreeing to unaffordable promises or losing documentation.
- 525 min
Run 90-day payoff sprints
Convert a long payoff estimate into short cycles with visible milestones and controlled extra payments.
- 622 min
Build post-debt guardrails
Redirect freed-up payments toward resilience so the same balances do not quietly return.
Use the tools
See all tools Make the lesson easier to act on.
Source transparency
Trust, then verify.
The practice sequence is original editorial synthesis. Current rules, safety details, and platform requirements should be confirmed with these primary or authoritative sources. References reviewed September 9, 2026.
Ready when you are
Start lesson one Start with the first useful move.
You’ll always know what to do, what to make, and where to go next.
Open collaboration ideaHelp keep this complete course free.
Illustrative fit—not a recommendation: Credit unions, debt-management nonprofits, budgeting tools
See open opportunities