Welcome to The Simple Nickle!

Clueless about your money? Do you want financial security, but don't know where to start?

The Simple Nickle is a free web-based program to help you easily understand and control your finances in less than 15 minutes a day! We'll guide you step-by-step; it's as easy as checking your email! We'll also give you easy-to-understand financial education starting with the most basic aspects.

The Simple Nickle: Phase 2

Phase 2: Get out of debt



  1. Learn your interest rates

    Now we know that today's task is a scary one, but we know you can do it! Today, you are going to go through your credit card and loan statements and find out what your interest rate is on each one. This way, we can figure out which ones we are going to pay off first, and get ourselves debt-free!

    1. Choose one credit card or loan statement from the pile of bills you have stashed right by your computer.
    2. Read the statement, looking for the part that says "Annual Percentage Rate" or "APR." This is usually at the end of the statement, after the list of transactions.
    3. Write this number down on a post-it note along with the name of the card or loan and stick it near your computer.
    4. Repeat steps 1-3 with the rest of your credit card and loan statements.
    5. You're done!
  2. Set a goal to pay extra money toward your debt

    Well, we did the dirty work of finding out those nasty interest rates on our debt, and now we are going to do something about it! Today, we are setting a goal of a measurable amount of money that we can put toward our debt each month. That's it...just a number. Any number you want. This money is what we are going to pay IN ADDITION to the minimum payment that we already pay. If we only pay the minimum payment each month, we will never pay down that debt!

    1. Think about the money you spend(cringe, I know!). Be honest with yourself! No one can hear you think:)
    2. Choose a dollar amount that you think you could come up with each month to pay towards your debt. Don't let it be too intimidating of a number, but don't be afraid to challenge yourself!
    3. Write this number on a post-it note and put it near your computer.
    4. You're done!
  3. Find extra money

    Think back to Step 2, and look at your post-it note to remind you how much money you have pledged to put toward your debt each month. And what better cause to pledge your hard-earned money to than getting rid of your debt and improving your life! Today we are going to do a scavenger hunt and find that money.

    1. Log on to your online account.
    2. Look over each of the transactions in your account...where is your money going to?
    3. Identify where you can reduce your spending each month, or not spend any money at all, until you reach the amount you pledged. Find more if you can! Click
    here for some more ideas.
    4. Write these down and the amount you save on a post-it note and put it near your computer.
    5. You're done!
  4. Automatically pay the extra money to the debt with the highest interest rate

    Okay! Today we are really going to start seeing some action with our debt...mainly that it will begin shrinking! We are already paying the minimum amount each month on our loans and credit cards. By applying more than the minimum payment to our debt, we decrease the debt as well as the amount of interest being charged to us...this saves us money and makes us smile!

    1. Choose the bill with the highest interest rate from the pile of bills you have stashed right by your computer.
    2. Log into your online bank account.
    3. Select 'Bill Pay,' 'Pay Bills,' 'Auto Bill Pay' or where ever on the site you can set up automatic bill payment.
    4. Follow online instructions, including choosing account to draw from, company to pay, when, etc. Arrange to pay the extra to the bill the day after your first payday each month.
    5. You're done!
  5. Automatically pay down your debt even faster

    Congratulations! Moving on to Step 5 means that you have successfully paid down a whole chunk of your debt. What an accomplishment, be proud of yourself! Today we are going to keep the momentum going and pay down the next chunk of debt even faster by snowballing. Snowballing means taking the amount you were paying toward your debt (which is now gone...hooray!) and applying it toward your next debt along with that debt's minimum payment. Your payents toward debt get bigger and bigger, like a rolling snowball. This way, your debt will begin to disappear much faster, and you are still only paying out the same amount each month. Genius!

    1. Figure out the new amount of money you are going to be paying toward your debt. This is the minimum amount you were paying on your highest interest rate debt, plus the extra amount you pledged to pay each month. (For example, if you were paying a $100 minimum payment on your credit card, and pledged to pay $20 more each month, the total is $120.)
    2. Choose the bill with the highest interest rate from the pile of bills you have stashed right by your computer.
    2. Log into your online bank account.
    3. Select 'Bill Pay,' 'Pay Bills,' 'Auto Bill Pay' or where ever on the site you can set up automatic bill payment.
    4. Follow online instructions, including choosing account to draw from, company to pay, when, etc. Arrange to pay the extra to the bill the day after your first payday each month.
    5. You're done!

<-Back: Phase 1: Set Up Online Banking

Next-> Phase 3: Saving Money

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