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Personal Finance > Managing Debt How to pay off your debts without coming up short

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The simplest way to pay off your debts without coming up short is to "wall them off." What do I mean? Simple: you need to build into your budget a set amount for repaying your debts, then stick to it, even as your income goes up and as your debts decrease.

Basically, the process goes like this. First, find the total minimum sum required to pay all of your outstanding debts as of this moment. When you have determined this sum, that is the amount you must pay each month to keep your debts in good standing. Note this figure and make it the "debt repayment" portion of your budget.

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