Step 1: Set Payments Above Minimums — Automatically
Log into each debt account’s online portal. Navigate to the payment settings and change the automatic payment from 'minimum payment' to a specific fixed amount above the minimum. For your highest-rate debt (the avalanche priority): set it to your maximum feasible payment. For all other debts: set it to the minimum. Update this setting every time a debt is paid off — rolling the freed-up payment into the next priority debt.
Sample automated debt payoff setup — avalanche method with full automation
| Account | Balance | APR | Automated Payment | Priority |
|---|---|---|---|---|
| Credit Card A | $8,500 | 24% | $500/mo (max available) | 1st — highest rate |
| Credit Card B | $4,200 | 19% | $95/mo (minimum) | 2nd |
| Auto loan | $11,000 | 7% | $285/mo (minimum) | 3rd |
| Student loan | $18,000 | 5.5% | $210/mo (minimum) | 4th |
Step 2: Automate the Cascade
The cascade rule: when Debt A is paid off, the $500 payment gets added to Debt B’s minimum payment — immediately and automatically. This requires logging in and updating the payment amount when each debt is cleared. Set a calendar reminder the month you expect to finish each debt to ensure the payment cascade happens within 48 hours of payoff.
When you pay off a debt: (1) Log into the old account and confirm $0 balance. (2) Immediately log into the next priority debt account and increase payment by the old payment amount. Do this within 24 hours of payoff — don’t let the money sit in checking where it can be spent.
Step 3: Automate the Tracking
The first of each month: log into all accounts, record current balance in a shared spreadsheet or notes app. Takes 5 minutes. The visual of your total debt balance decreasing each month is a powerful motivator. Some people use a physical 'debt thermometer' posted on their refrigerator — a bar graph they color in as the balance decreases. This analog tracking complements the automated system by keeping progress visible.
Build Your Automated Payoff Schedule
Enter all your debts to generate a month-by-month payoff schedule — then automate each payment in your banking portal.