Debt Payoff Fast

This may not apply to your situation if you are currently debt free. Chances are though you may have someone you know that you could possibly help with this Mills Way to Financial Freedom rule. We taught this to our kids so if something happened and they found themselves in debt during their adult kids they would have the skills to get debt free fast. Of course, depending on how much debt they may fall into.

Choices and Consequences, we stress in our house. Some people have things that happen to them that maybe they couldn’t have prevented that causes debt but most people that have debt spend money they don’t have on normally stupid stuff.

People I have worked with in the past that wanted to get out of debt normally drove nicer cars than I did. They normally had nicer cell phones than I had. They normally go out to eat and events more than I do. They live in a larger house than they can afford. This list can go on and on. Again, they made some poor choices.

As always, I am not giving you any Financial Advice and you should seek advice from your Professional Advisors to see what is best for your situation. See my Disclaimer at This is for entertainment only.

Action Steps

That is why this Rule is part of Action Step 2, 4 and 7 in getting towards your Financial Freedom goals. Action Step 1 is to list your goals you have for Financial Freedom and then your Why’s for each goal, what you will give up to attain each goal and when you want to accomplish each goal by.

Action Step 2

Action Step 2 is to create a budget with a payment Accelerator amount and to track all your spending.  The payment accelerator amount we try to achieve is usually at least 10 percent of their monthly Gross or Net Income depending on how aggressive they are. This will help them get debt free even faster if they are able to have the discipline to live with in their new budget.

Action Step 3

Action Step 3 is where we want them to save $1,000 for Emergencies that could come up. We want them to save it as fast as they can to help cover small emergences that could come up. Then we like them to cut up all their credit cards and live on cash only unless they have the discipline to use a Credit Card just for main bills and pay it off right away.

We have one credit card in our family and we use it for our main bills, we get cash back on it and we pay it off what we owe twice a month. Some people just can’t handle the temptation of having a credit card and use it for wants and not needs. Like my Son when he got a Credit Card to help him establish his credit, he was supposed to use it just for gas for the car and school expenses but in his first month he doubled his spending on food and bought two gifts also.

Action Step 4

Action Step 4 is paying all debts off except your Home Mortgage. We still will use the principles in this step for Action Step 7 to be totally debt free and be on our way towards our Financial Freedom goals.

You may think this principle that I will share with you sounds too complicated or too simple. Here are the steps we do;

  1. With this we list out all your debts from smallest to largest in an excel spreadsheet but you can always do it old school on a sheet of paper.
  2. Have 6 columns in your sheet. Column A is for the Name of the Debt, Column B is for the Balance you owe, Column C is for the Current Month Payment they want, Column D is for the Pay-Off Order, Column E is for Debt Roll-up Amount and Column F is the Months to Pay Off your debt.
  3. Column E you take your Debt Accelerator Amount plus your monthly payment amount for the first debt. That is the amount you will now pay on that debt. For example, your Debt Accelerator Payment is $420 and your first debt payment is $28 a month and the total you pay on the first debt is $448 a month till paid off.
  4. Once the first debt is paid off you take the Amount that you paid on the first debt and add it to your second debt on your list and pay that amount on the second debt till it is paid off. For example, if your second debt is $41 a month and now you would add $448 that you paid on the first debt and your payment amount on the second debt is $489 until it is paid off.
  5. Then you continually do this for each debt you have from Credit Cards, Personal Loans, Student Loans, Car Loans, Home Loans and on to any other debts you have till you are debt free.

It is amazing how much faster you can get debt free once you aren’t adding to your debt and using a debt accelerator amount. Some people say why do we do smallest debt to largest debt. I like to do that to create momentum to help keep the ball rolling and get you excited. I have seen people that got excited during the process and even added more to their debt accelerator amounts.

Some people say they want to pay off the highest interest rates first and then work on the ones with smaller interest rates. There is nothing wrong with that if that will make you happy. The main thing is that you stick with it and keep rolling up your debt payments as debts get paid off and using a debt accelerator amount.


You may be able to do it yourself or you may need a mentor, friend, relative or financial coach like myself to keep you on track. What ever works for you it is good to find someone and let them know your progress each month.

It is exciting to see the amount of money you owe go down each month and when a debt drops off it is even more exciting. You may think it isn’t possible or that easy but let me tell you it is. From personal experience I have lived it.

Do you have debt or know someone that has debt? How much debt do you have? What are your goals on getting debt free?

Credit Score

Credit Score doesn’t matter to us in our latter years. Since our house is paid off, our emergency fund is done and we have money invested. We have no need for a good credit score since we have no plans to ever borrow money again.

The boys we want them to establish a credit score to help them get their first Apartment and for getting Utilities hooked up since some of those companies will check their credit score. But we teach them to live debt free and to invest for passive income. We would like to see them in the future to pay cash for cars to houses.  


Here are some positive quotes I like;

“1. Make Money. 2. Use the Money to Make More Money. 3. Repeat the Process.” By Warren Buffett

“There is no way to happiness; happiness is the Path.” By Buddha

“Change Your Thoughts – Change Your Life” by Wayne W. Dyer

Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.

Don’t give up on your dreams; don’t let others talk you out of your dreams. Make your dreams happen. Make it happen today.

Visit my Podcast at www.Live4.Club on, Spotify, Pocket Casts, Breaker Audio, Google Podcasts, Radio Public, I-tunes, Apple Podcast and more. If you would like to be a guest on my Podcast drop me an email at or Text me at 480-389-6224

Support me at, or

Thanks, and Have a great night.  Please Support or Follow me at  for access to all my blogs.

Click here for some Side Income and Part-time Business Ideas and Live4.Club

Personal Capital – Manage your money now. Smart way to track and manage your financial life. Award-winning financial tools and more. #financial freedom #financial independence #FIRE #Hustle #Live4 #podcast #millsway

3 thoughts on “Debt Payoff Fast”

  1. Today, I went to the beachfront with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is totally off topic but I had to tell someone!

  2. I have been exploring for a little bit for any high quality articles or weblog posts on this sort of house .
    Exploring in Yahoo I ultimately stumbled upon this site.

    Reading this info So i’m happy to exhibit that I’ve a very just right uncanny feeling I came upon exactly what I needed.
    I so much undoubtedly will make certain to do not disregard this web
    site and provides it a look regularly.

Leave a Reply

Your email address will not be published. Required fields are marked *