Debt Reduction Schedule helps determine which debts to pay off first and whether to pay them off faster or at the lowest possible cost.
 

What is it?
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.

How Does It Work?
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.

Summary
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.