How to Make a 2027 Debt Payoff Plan (Example Numbers)
By Cedar & Ledger
A new year is a natural point to list every debt and pick a payoff order. Here is a simple plan you can set up in an evening and follow month by month through 2027.
Any dollar figures here are made-up examples, not recommendations. This is general information, not financial advice. If you are behind on payments, a nonprofit credit counselor can help you look at options.
Step 1: List every debt
Write down the balance, interest rate (APR) and minimum payment for each one.
| Debt (example) | Balance | APR | Minimum |
|---|---|---|---|
| Store card | $600 | 27% | $25 |
| Credit card | $2,400 | 22% | $60 |
| Car loan | $7,500 | 7% | $240 |
Step 2: Pick an order
- Snowball: smallest balance first. Quick wins keep you going.
- Avalanche: highest interest rate first. Usually costs less in interest.
In this example both methods start with the store card. Debt Snowball vs Debt Avalanche explains how to choose.
Step 3: Find your extra payment
Look at last month's spending and pick one realistic amount to add on top of all minimums, say $100 a month. Pay every minimum on time, then send the extra to the first debt on your list.
Step 4: Roll payments forward
When the first debt is paid off, add its whole payment to the next one. In the example, the store card is gone in about 5 months ($25 + $100 = $125 a month), then $185 a month goes to the credit card on top of its $60 minimum.
Step 5: Check in every month
Once a month, write down each new balance and color in your progress. Use extra money such as a tax refund or a three-paycheck month to speed things up. How to Pay Off Multiple Credit Cards has a longer worked example.
A printable, if you want one
A notebook works. If you'd like pages made for it, the 2027 Debt Payoff Printable has a debt list, payoff-order page, monthly payment logs for 2027 and progress trackers to color in. If you prefer a spreadsheet that does the math, see the Debt Snowball Tracker. We'd earn from a purchase.
Related template: 2027 Debt Payoff Printable. Also see: Debt Snowball Tracker · 2027 Complete Budget Set
See all Cedar & Ledger templates
Try the free debt payoff calculator (snowball vs avalanche) →
Frequently asked questions
What does this guide cover?
List every debt, pick snowball or avalanche, find one extra payment, roll payments forward and check in monthly through 2027. Example numbers only.
What are the steps?
1) List every debt; 2) Pick an order; 3) Find your extra payment; 4) Roll payments forward; 5) Check in every month.
Do I need a template to do this?
No. A notebook or a sheet you build yourself works fine. Cedar & Ledger also sells spreadsheet templates (I'd earn from a purchase); see the template box at the top of this page.
Is this financial advice?
No. It's general information with example numbers only, not financial, tax, legal or medical advice. Use your own numbers and check anything important with a qualified professional or the official source.