The Method That Helped This Woman Get Out of Over $30,000 in Debt

If you're faced with significant debt, you're not alone. 75% of Americans owe at least $50,000 or more. And, once that debt piles up, it can feel extremely overwhelming to figure out how to start paying it off. (Plus, it has a serious impact on your credit score.)  

Melea Johnson (Instagram: @themeleashow) found herself in this boat with over $30,000 in debt—and used the rollover debt method (similar to the snowball debt method) to pay it off. 

After getting out of debt and becoming more financially savvy, she started “The Melea Show” on YouTube “to help others learn how to 'Live the Ultimate Life for Less.' As a money-saving expert, I test, try and share the BEST so you don't have to waste your money on things like travel, beauty, finances, and more," Melea says. She also covers everything from couponing to credit scores on her social platforms. Here she explains how to use the rollover method to dig yourself out of debt. 

How to Use a Debt Rollover Plan  

Tip #1: Make a List of Your Debts  

"You'll need the name of the debt, the total you still owe, the interest rate you are paying and your minimum monthly payment," Melea explains.  

Tip #2: Order Your Debts 

"Order your debts by the lowest amount still owed to the highest amount still owed OR you can order them by whichever debts have the least amount of payments left," she says.    

Tip #3: Continue to Make Your Payments 

"Make sure to continue [making] ALL of your payments like normal throughout this Debt Rollover Plan. If you have extra money, you can apply [that amount] to the first debt's minimum payment amount. Do that as it will help you pay off all of your debts faster," Melea says.  

Tip #4: Roll Over Your Payments 

"As soon as you pay off your first debt, take the payment you were making on it and roll it over, adding it to the payment you are making to the second debt in your list," she explains. This is where the roll over strategy comes into play.     

Tip #5: Continue With This Strategy  

"Continue making this increased payment amount every month until debt #2 is paid off," Melea says.   

Tip #6: Now Roll Over Payments To Debt #3 

"Next, take the amount you were paying towards debt #1 and debt #2 and add it to the payment you are making on number #3," she says.   

Tip #7: Continue Until All Debts Are Paid Off 

"Keep repeating this process and rolling over the money into each debt down the line until they are all paid off," Melea explains. With this plan, consistency will help you get out of debt without feeling overwhelmed.