How to pay off debt
Aspire doesn’t have a dedicated “debt payoff” feature — but its category and goal system gives you everything you need to build a structured payoff plan.
Choose your strategy
| Method | How it works | Best for |
|---|---|---|
| Snowball | Pay minimums on everything, throw extra at the smallest balance first | Motivation — you see balances disappear quickly |
| Avalanche | Pay minimums on everything, throw extra at the highest interest rate first | Math — you pay less total interest |
Both work. Pick whichever keeps you going.
Setting up debt payoff in Aspire
Step 1: Create a category for each debt
On the Configuration tab, create a category for each debt you’re paying off:
- “Visa Payoff”
- “Student Loan”
- “Car Loan”
- “Medical Debt”
Use the ◘ Credit Card type for credit cards, or ✧ Reportable for other debts — whichever makes sense for how you want them in reports.
Step 2: Set Monthly Amounts
For each debt category, set the Monthly Amount to your target monthly payment:
- Minimum payment debts: set to the minimum
- Your focus debt (snowball = smallest balance, avalanche = highest rate): set to minimum + whatever extra you can throw at it
Step 3: Set Goal Amounts (optional)
If you want to track total payoff progress, set the Goal Amount to the remaining balance you owe. The ⚑ on the Dashboard will show your progress.
Note: since you’re paying down (not saving up), this won’t be perfectly accurate — but it gives you a visual marker of how far you’ve come.
Step 4: Fund monthly and pay
Each month:
- Fund your debt categories on the Category Transfers tab
- When it’s time to pay, log the payment as a transaction from your checking account, categorized to the appropriate debt category
- If it’s a credit card, follow the credit card payment process
Step 5: Celebrate and redirect
When a debt is paid off:
- Move the category to Hidden Categories on the Configuration tab
- Take the Monthly Amount that was going to that debt and redirect it to your next focus debt
- Your snowball grows
Tracking interest and fees
Interest charges and fees reduce your progress. Log them as transactions:
- Outflow column: Enter the interest or fee amount (leave Inflow blank)
- Account: The credit card or loan account
- Category: Create a dedicated “Interest & Fees” category, or log it against the specific debt category
If you use a separate “Interest & Fees” category, your Spending Reports will show exactly how much interest is costing you each month — which can be motivating to accelerate payments.
Example: Snowball with three debts
| Debt | Balance | Rate | Minimum | Your payment |
|---|---|---|---|---|
| Store card | $800 | 24% | $25 | $200 (focus) |
| Visa | $4,200 | 19% | $85 | $85 |
| Car loan | $12,000 | 5% | $280 | $280 |
Monthly Amounts: Store card = $200, Visa = $85, Car loan = $280.
Once the store card is gone (~4 months), redirect that $200 to the Visa: new Visa payment = $285/month.
Tips
- Don’t budget money you don’t have. It’s tempting to set aggressive payoff goals, but only assign money that’s actually in your accounts.
- Build a small emergency fund first ($500–$1,000). Without one, unexpected expenses go right back on the credit card and undo your progress.
- Review monthly. Check your debt balances against your bank statements to make sure your tracking is accurate.
- Visualize progress. The Trend Reports tab can show your spending in debt categories declining over time.