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Take all your current debt information and project a possible solution for eliminating your debt. The
solutions generally show significant savings in interest (interest that does not go to creditors) by
following the schedule instead of merely making the same current payments.
Each of your debts is given a priority. Each month, payments are made to each debt. Once one debt is
completely paid off, then the payment that was earmarked for the paid off debt is then applied towards
the next highest priority debt. This then accelerates the payment on that debt. When that debt is paid
off, then repeat the process with the next highest priority debt.
Loan acceleration (early payoff of your loans) produces your interest savings.
As debts are paid off, the payments for those debts are applied to the highest priority debts that
have not been paid off. Several options are available which can help accelerate and optimize your debt
elimination schedule. These include using minimum payments, applying extra payments and selecting a
priority method.
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