Congratulations! The debt payoff method most likely to work for you is the Kiyosaki method.
Click here to download a PDF of your results.
The Kiyosaki method, or Highest Payment method, prioritizes your debt with the highest payment amount first, excluding your mortgage. Then once paid off, roll that payment into the debt with the next highest payment.
How it Works:
When you look at your list of debts, put them in order from highest payment amount to lowest payment amount, excluding real estate, and ignoring balances and interest rates. Pay the minimum payments to all debts except for the highest payment amount debt, which you throw all extra money toward until it is paid off, then start again with the next debt and so on.
Who it’s best for:
This method focuses on your monthly payment amounts and is good for someone who has a very tight budget without a lot of wiggle room. By paying off the debt with the highest payment amount first, you free up this amount in your monthly budget and create extra cash flow. This extra allows you to weather storms, cover unexpected expenses and can dramatically reduce stress if you have a tight budget.
If you have a really tight budget, or if you have a debt with a high payment in comparison to your other debts, this method could work best for you. I often see this used when someone has a high car payment and maybe a year or less to pay it off, with large balances on other debts such as credit cards or student loans.
Does this sound like a strategy you can feel excited about? I’d love to hear what you think. Drop me an email at firstname.lastname@example.org and let me know what you think of your results.