1. Build one complete debt inventory
List lender, balance, interest or APR, EMI/minimum due, due date, collateral, overdue status and foreclosure/prepayment rules. Unknown debt is hard to manage.
Tip: One sheet is better than five apps.
2. Stabilise cash flow before accelerating
Create a basic monthly surplus, protect essentials and keep a starter emergency buffer so every unexpected bill does not go back onto a card.
Tip: Debt payoff fails if the household keeps creating new debt.
3. Pick the repayment order and automate it
Use avalanche, snowball or a risk-adjusted hybrid. Schedule required payments first and send extra cash to one target debt.
Tip: Focused extra payment works better than spreading tiny extras everywhere.
4. Roll freed EMIs forward
When one debt closes, redirect that entire old EMI to the next target instead of increasing lifestyle spending. Review progress monthly.
Tip: The debt-free date moves closer each time an EMI is recycled.
5. Quick check
After closing one loan, what is the strongest next move?
Answer: B - Reusing the old EMI accelerates the next payoff.