Paid DebtAs in all areas of personal finance, have a plan automating our process makes things easier. This automation leads to an assured wealth. Today I want to show you the plan I put in place when I want to pay my debts.

A very simple plan to pay revolving debts; be on autopilot mode moves us forward in small steps, but we moved forward anyway. So we can put aside our emotions and achieve our financial goals more easily.


A good plan to repay debts


I’ll show you a method.  Nicknamed “the pyramid levels”; It is in fact paying the minimum due on each of your debts. And by paying the minimum, you will have a surplus of money at the end of the month. This surplus, you must apply it to the debt interest with high rates.


You understand that the most expensive debt will quickly disappear. Once this debt eliminated, you start the ride. All amounts that you use to pay off that debt with high rates must now be paid to the second debt with the highest rate, while maintaining the minimum payment on the other debts.


By dint of applying the method of the pyramid levels, you will have less interest to pay on your debt while eliminating debts one by one … until you no longer have any debt.


My method of pyramid levels requires patience because the “number” of debt in your possession will fall slowly, since you spend most of your savings to pay off a large debt. So, you can reduce your payments, but not the number of your debts. By cons, it is the most profitable in the long run because you will save many interest payments.

So if you want to reduce the number of your debts to encourage you to persevere, a variant of methods can be applied.


In fact, you perform the same trick on the minimum refund of your payments on each of your debts, but you use your surplus to the debt with the lowest amount, instead of the highest interest rates. Therefore, this debt will disappear quickly … and you have a debt to pay less. Thereafter, you are reusing this debt for other debt to pay the lowest, etc…

One way or another; the important thing is to pay its debts automatically.

That is the explanation of the pyramid rates method. Like what, have a good plan automating personal finances can enrich us long term.