Ramit Sethi walks through three steps to automate debt payoff: call your creditors to get exact balances and interest rates, decide how much you can pay monthly and pick a target date, then set up automatic payments. Most people don't know their actual balances or how long payoff takes.
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April 12, 2025
Wouldn't it be nice to finally get out of debt without even having to think about it? Well, you can, I believe, in automating your money so that your money automatically goes where you want it to go. Here's how you do it. Number one, find out how much you owe. Remember that 90% of the people I talk to do not even know how much they owe. 95% of them have no idea when that debt will be paid off. So you got to find out how much you owe. Call up the companies, ask them the balance and the interest rate. Write it down. Number two, see how much you can pay towards that debt every month and create a debt payoff date. You might owe $1,200. If you're paying off $100 a month, that's going to take you 12 months. Easy math, but it gets more complicated when you have an interest rate and when you have lots of time. What you'll discover if you go online and you type mortgage payoff calculator or credit card debt payoff calculator is if you plug in your numbers very simply. Sometimes if you pay an extra 50 or $100 a month, you can save years on your debt. That is incredibly empowering. Number three, and the last step, set up automatic payments to your credit cards. You want it to happen every single month without you even having to touch it. Now, if you want to know how to do this, use my conscious spending plan to see where you can cut back so you have more money to put towards your debt and and ultimately your rich life. If you like this video, share it with a friend and make sure to bookmark it.
