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Lesson 1
Intermediate
Managing Debt
Get out of debt step by step without feeling overwhelmed.
Debt can feel overwhelming, but with a plan, you can become debt-free.
List All Debts
Write down every debt: who you owe, how much, interest rate, and minimum payment. Seeing it all in one place is the first step to freedom.
Debt Snowball Method
Pay minimum on all debts, then put extra money toward the smallest debt first. When it's paid off, move to the next smallest. This builds momentum and motivation.
Avoid New Debt
While paying off debt, do not take new loans. Use cash for everything. If you can't afford it with cash, wait until you can.
Negotiate
Many lenders will reduce interest or extend payment plans if you ask. Don't be afraid to negotiate — the worst they can say is no.
💡 Key Tips
- ✓ List all debts — knowledge is power
- ✓ Pay smallest debt first for quick wins
- ✓ Never take new debt while paying old
- ✓ Ask lenders for better terms
📝 Quick Quiz
Answer these questions to complete the lesson and earn your badge.