52 Week Savings Plan for Debt Resolution

This year I am excited to bring to you this 52 Week Savings Plan for Debt Resolution. This plan is all about saving small amounts to begin paying off large debts one chunk at a time. One of my favorite analogies is about how to eat an elephant. You do so one bite at a time. The same philosophy applies to debt. Whittle away at those bills one penny at a time.

52 Week Savings Plan for Debt Resolution

Each month, we are giving you a set amount of money to save per week toward your debt. During this time, we are also giving you a goal to accomplish each month. This goal is something that will help prevent your debt from increasing, or that could possibly lower existing debt. You have 4 weeks to save that amount as well as to complete your debt resolution task.

You can use a jar to save money, or you can have it auto drafted into a savings account at the bank. Whatever method you chose to save this money, you will want to be consistent.

As you begin accumulating savings, you can use this for two purposes.

(1) Use the savings at the end of the month toward a debt at that time

(2) Save the money to pay off a larger debt at the end of the year

Weeks 1-4

Put aside $5 per week toward your debt. At the end of the 4 weeks, you will have $20 toward your debt.

Task: Create a functional budget that shows you all of your monthly expenses. This will help you to understand where you are spending money and why you got into debt in the first place.

Weeks 5-8

Put aside $7 per week toward your debt. At the end of the 4 weeks, you will have put an additional $28 toward your debt with a total savings thus far of $48.

Task: Contact each of your debt accounts for an accurate account balance. Request lower interest rates or a pause on the accounts to reduce accumulating interest fees.

Weeks 9-12

Put aside $10 per week toward your debt. At the end of the 4 weeks, you will have put an additional $40 toward your debt with a total savings thus far of $88.

Task: Dedicate time this month to update any subscriptions or monthly bills you have to the most efficient and frugal plan available to suit your needs. This includes removing added insurances if no longer needed, dropping extra channels on your cable program, or canceling services you are no longer using.

Weeks 13-16

Put aside $12 per week toward your debt. At the end of the 4 weeks, you will have put an additional $48 toward your debt with a total savings thus far of $136.

Task: Apply existing savings to pay off a small debt if possible. If not possible to pay off any debt, contact creditors to find out if any currently offer a lower pay off when paid up front. This is for research purposes only at this point. When considering a debt payoff at a lower amount than owed, you will want to research if this is best for you in the long run as it can cost you more on annual taxes.

Weeks 17-20

Put aside $15 per week toward your debt. At the end of the 4 weeks, you will have put an additional $60 toward your debt with a total savings thus far of $166.

Task: Evaluate your current income sources to see if you can add additional income streams to increase your savings. This would include things like asking for a raise from your employer, taking on a second job, adding a work from home job, or a direct sales business opportunity.

Weeks 21-24

Put aside $18 per week toward your debt. At the end of the 4 weeks, you will have put an additional $72 toward your debt with a total savings thus far of $238.

Task: Consider downsizing to make more room in your budget. This can be something as simple as cleaning out closets and having a yard sale, or as big as selling a car to buy a more affordable option with lower payments or gas expenses.

Weeks 25-28

Put aside $20 per week toward your debt. At the end of the 4 weeks, you will have put an additional $80 toward your debt with a total savings thus far of $318.

Task: Evaluate your current debt balances. Use the existing savings to pay off a debt if possible. If not possible, consider calling creditors again to see if there are any lower interest rates currently available.

Weeks 29-32

Put aside $22 per week toward your debt. At the end of the 4 weeks, you will have put an additional $88 toward your debt with a total savings thus far of $406.

Task: Set up leveled billing with your utility companies to help keep your budgeted utility bills a known amount month to month year-round. This may not save money in the long run, but can make the

Weeks 33-36

Put aside $25 per week toward your debt. At the end of the 4 weeks, you will have put an additional $100 toward your debt with a total savings thus far of $506.

Task: Start shopping sales for holiday gifts to make sure you don’t create debt for presents. Make an effort to not pay full price for any gift, and to arrange for a Secret Santa gifting experience with family so you aren’t buying so many gifts this year.

Weeks 37-40

Put aside $28 per week toward your debt. At the end of the 4 weeks, you will have put an additional $112 toward your debt with a total savings thus far of $618.

Task: This month, take time to evaluate all of your insurance policies. Check for any updated plans that suit your needs better at a lower cost. Also check other insurance companies for better rates. Sometimes you will be surprised at savings you find from a company you’ve not tried before.

Weeks 41-44

Put aside $30 per week toward your debt. At the end of the 4 weeks, you will have put an additional $120 toward your debt with a total savings thus far of $738.

Task: This month, create a no spend month where you don’t buy anything outside of paying mandatory bills. This includes eating from your pantry and freezer, not shopping for new clothing, or splurging on anything outside your immediate household budget needs.

Weeks 45-48

Put aside $33 per week toward your debt. At the end of the 4 weeks, you will have put an additional $132 toward your debt with a total savings thus far of $870.

Task: Begin updating your household budget for the next year. Evaluate what changes need to be made, and where you stand with paying down debt at this point.

Weeks 49-52

Put aside $35 per week toward your debt. At the end of the 4 weeks, you will have put an additional $140 toward your debt with a total savings thus far of $1010.

Task: This month, attempt to pay off at least one debt. If your debts are higher than the amount you saved over the course of the year, then work toward paying off the debt with the highest interest rate.

Click the image below to print the 52 Week Savings Plan below!

For more tips on how to get rid of your debt, you may want to check out Dave Ramsey’s Total Money Makeover. It’s a great program that can walk you step by step through methods of paying off a large debt. Make sure to print our savings plan printable, as well as sign up for our email subscription so you get regular emails about future frugal tips.

More Frugal Living Tips:

Tips for Creating a Household Budget

How to Eat Healthy on a Budget

10 Frugal Ways to Save on Vacation