How to build a debt payoff plan and find your debt-free date

A debt payoff plan is three things: a complete list of what you owe, a payment you commit to for each debt, and a date that tells you when it ends. The date is the part that changes behavior. “23,400 euros across four loans” is a fog; “debt-free in March 2029” is a destination. Here is how to build one.

Step 1: list every liability

Liabilities — personal loans and debts you owe. Your student loan, a credit line, the car loan, a note you still owe a friend. The plan only works if the list is complete, including the awkward informal ones.

For each liability, record what defines it: the amount still owed, the interest rate if it has one, and the payment schedule. In Reign, each liability becomes a tracked item with its own balance that shrinks as you record payments. The free tier tracks 3 debts; Plus raises that to 50.

Step 2: record payments as they actually happen

This is where most payoff plans quietly die. A plan built on intended payments drifts away from reality within two months. Record what you actually paid, when you actually paid it, and let the plan recompute from that.

Reign builds your debt-free date from recorded payments, not promises. Pay less one month and the date moves out; the plan absorbs it instead of breaking. The date you see is always the honest one.

Step 3: give each debt a payoff plan

With the list in place, give each liability a payoff plan: the payment you intend to make on its schedule. Reign combines the plans into one number you can hold onto, your debt-free date, computed from balances, rates, and what you actually pay.

Step 4: test extra payments before you commit

The most motivating question in debt payoff is “what would an extra 50 a month actually change?” Guessing produces nothing; seeing the date move produces action.

Reign’s simulator answers it directly: try an extra payment and watch the debt-free date move closer, by name and by month. Some extras move the date by weeks, others barely move it at all, and knowing the difference tells you where extra money works hardest.

Which debt gets the extra money

Two classic strategies, both compatible with everything above:

• Highest interest first (often called avalanche): mathematically cheapest, since expensive debt dies sooner.
• Smallest balance first (often called snowball): fastest first win, which is worth real money if it keeps you going.

The honest answer is that the best strategy is the one you will sustain. The simulator lets you test both against your actual numbers instead of arguing about it in the abstract.

Watch the date, not the balance

Balances shrink slowly and unevenly, which reads as failure even when you are on track. The date does not have that problem. It sits still while you pay as planned, and it jumps closer when you pay extra. Checking it monthly is enough to stay honest.

Start with the list. Create a free account, record your first liability, and see your date.

Related reading: how to track spending without linking your bank, which frees up the money that moves the date.