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  • Writer's pictureStephen Gardner

Cash Flow Index Debt Elimination

Updated: Jan 21, 2021

Today I want to cover the 4th and final strategy for getting out of debt faster. Make sure to check out my other videos and articles to educate yourself on the other debt elimination strategies.

Today I want to discuss the cashflow index method for getting out of debt faster.

Like the other debt elimination strategies, you need to gather your debt information on to one single page. You need to know the debt, the amount, the minimum payment and what you've been paying.

You need to find margin or that extra amount of money you can place on your debts each month to drive them down.

Once you have all debts in one place and your margin you are going to divide your debt by the minimum payment to get an index score.

Once you have an index score on all of your debts, you will want to start with the debt that has the lowest index score. This will tell you the fast route out of debt.

Essentially what you are doing is paying the minimum on all your debts except the one with the lowest index score. On that debt you pay the minimum plus the extra margin to pay it down fast.

Unlike the snowball method which seeks to pay off the smallest debt first, the index method might actually suggest a higher debt that when paid off makes your margin bigger so you can pay off the remaining debts faster.

One example would be every now and then the index method suggests you pay off a car before a credit card even though the balance is lower or the interest rate is higher because once you free up the cashflow going to the car debt you will pay off the next two debts faster.

I’ll be sure to do a more in depth video with numbers to help you make sense of this strategy. Today is just an overview or 10,000 foot view of an incredible strategy.

I hope you found this video helpful.

Getting out of debt is a great way to improve your understanding of money, improve your self esteem and your credit.

Plus with everything going on in the economy, getting out of debt might be the best investment you can make right now for yourself and family.

I wish to remind you that you are amazing.

I appreciate you being in my community


38 comentários

22 de set. de 2021

Dear Stephen, I have a Big problem! Last month my credit score was 787 this month it's down to 617. I have a medical collection on me. The original date for this account was Nov. 25, 2017 and I had a Humana Insurance card. This account was not paid because the hospital didn't send it in for 3 months so my insurance refused payment. Now this account has been sold 4 different times. Every time it's sold the date starts new. I tried to dispute and was told that it is within the " fair credit reporting ". All my other bills have shone I was never late even once and I even paid off 2 cars. I'm a…


01 de jul. de 2021

I am trying to find out if there is any news on the student loan forgiveness programs. Please advise. Thank you and God bless you and your family.


30 de jan. de 2021

I am a low income, single parent and working hard to establish better credit for myself and children's future. I was wondering your thoughts on the credit builder program. I did start working with them, but after the first three payments you are offered to open a secured credit card with them, using the money you saved so far. But, I am hesitant on getting it. My score has gone up 15 points slowly since August 2020. I was at 673 and now at 687. Transunion on the other hand shows me at 703. I am ecstatic about. My goal is at least 720. In the time opening it I opened two credit accounts, one for vehicle repairs, one…


21 de jan. de 2021

You such a good man and God richly bless your family


21 de jan. de 2021

From the very beginning of all these stimulus checks and other government help has been happening. I've saw one of you're very first videos and clicked on it because i was so lost and confused. I'm a single mother. Who had her child at a very young age. I had my daughter when i was a senior in High school. I luckly Graduated high school with a big belly. But all my life I've had to struggle and fight my way through depression and anxiety. Going through this Epidemic i've lost my job now ive had to go on unemployment and i was so lost and struggling so badly to keep food on the table for my daughter. But watchi…

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