The 5-Step Method Explained

If you saw my about me video, paid off $160,000 worth of credit cards that was spread over 14 cards using this method. So here's the top to bottom, five steps in order. Step 1. You're debt by one number. Not balance, not interest rate. Minimum payment divided by the balance. A credit card with a 7200 dollar balance and a 360 dollar minimum payment. That's 5% debt efficiency percentage. Compare that to a card with 18,000 dollar and 195 dollar minimum payment. That's about 1%. The first card is robbing you of your five times harder, five times harder, even though it has a smaller. That percentage becomes your attack order. Whatever rings first gets additional payments. Everyone else gets minimum payments. No more. Step 2. Smooth bills. Most people don't actually have a spending problem, a timing problem. The majority of your bills land on one paycheck. The other paycheck gets less. That's what makes you feel broke every other week, even when the math works out monthly. You call your services, ask them to move your due other half of and spread everything evenly. Most companies do just one call. There's no penalty. Step 3. Budget in four buckets in order. Fix bills first. Rent, mortgage, credit card or debt. Minimum payments, insurance, car payments and so on. Then variable necessities like groceries, gas, utilities, all the things you pay for, but they fluctuate each time. Then targeted savings are sinking funds like Christmas vacations or a car repair fund spread evenly across the or paychecks that you're saving for. Whatever survives all three, that's your margin. That runs everything else in the you protect from excess spending as much as you possibly can. Step 4. You're gonna split that margin by phase. And that phase savings. Under $2500 saved, 60% of your margin goes towards savings, 40 to your top ranked debt as an additional payment. Building a real buffer comes first. That twenty five hundred dollars, it flips 80% to debt, 20% to savings. Until you've built up of expenses. That's just gonna total of fixed and variable variable bills times six. Once that's done, it's 100% towards debt every month until it's all down five steps. Step five. You need to track it. Every payday, every statement. This is what makes the whole thing compound. When your top debt hit zero, that payment doesn't just vanish, it flows back to your margin. The same way. And the debt portion goes straight at whichever card is ranked next. Your minimum burden. All those minimum payments added together keep shrinking faster the whole way down five steps. Five steps. No lifestyle cuts, no side hustles, no waiting years feel like it's working. The tool in my bio runs these automatically for you. In your numbers, it ranks it, it calculates it, it tracks it. Free. No catch links in the bio, same as always.