Milestone map
Milestone map
3 milestones
Define the debt target and calculate payoff timeline
1 week
Choose one specific debt balance to eliminate: credit card, personal loan, car loan, or student loan — name the lender and the exact balance. Calculate the minimum monthly payment, the interest cost of continuing minimum payments, and the monthly payment needed to reach zero within your target timeframe. Choose avalanche (highest interest rate first) or snowball (smallest balance first) and document why that method fits your situation.
Proof required
Written payoff plan document showing: lender name, current balance, interest rate, current minimum payment, target monthly payment, projected payoff date, and total interest saved versus minimum-payment scenario.
What gets checked
- Specific lender, balance, and interest rate documented (not an aggregate across multiple debts)
- Payoff calculation shows monthly payment required to hit the target date — not just the minimum
- Method choice (avalanche or snowball) documented with reasoning
Common mistakes
- Choosing to pay down a low-interest student loan while carrying high-interest credit card debt — interest rate priority matters more than emotional preference
- Setting an unrealistically aggressive payoff timeline that requires cutting all discretionary spending — unsustainable plans are abandoned within two months
- Treating the minimum payment as the target — the minimum was designed to maximise lender interest revenue, not to eliminate debt efficiently
Resources
Foundationstart here
Depthgo deeper
What a verifier looks for
- Verify the payoff calculation is arithmetically correct — monthly payment × months should approximately equal balance + projected interest
- Confirm a specific debt (not a vague category) is named
Reach 50% payoff with documented payment evidence
varies (per payoff timeline in M1)
Make consistent payments above the minimum and reach at least 50% of the original balance reduction target. Document the progress with account statements showing the balance trajectory — not self-reported figures. If the timeline is running ahead or behind, document the cause and whether the plan needs recalibration. A windfall payment (tax refund, bonus) that accelerates progress is valid; document it explicitly.
Proof required
Account statement or lender portal screenshot showing current balance is ≤50% of the original M1 balance, with a brief progress note explaining whether you are ahead of, on, or behind the M1 timeline and why.
What gets checked
- Balance shown on the statement is ≤50% of the original M1 starting balance
- Statement or portal screenshot is from the actual lender account, not a third-party app estimate
- Progress note explains the trajectory and any significant deviations from the M1 plan
Common mistakes
- Borrowing against the same debt while paying it down — balance goes sideways rather than down, which the statement will show
- Pausing payments when a budget month is tight and not resuming — every pause extends the payoff date by compounding interest
- Using a financial aggregator balance estimate instead of the actual lender statement, which may lag by weeks
Resources
Foundationstart here
What a verifier looks for
- Verify the balance on the statement is ≤50% of the M1 starting balance — do the arithmetic explicitly
- Confirm the statement is from the named lender in M1, not a budgeting app estimate
Reach zero balance with final statement evidence
varies (per payoff timeline)
Pay the debt to zero and obtain a final statement or payoff confirmation letter showing a £0/$0 balance or 'paid in full' status from the lender. For credit cards, request account closure confirmation if you intend to close the account; for loans, request a payoff letter confirming no remaining balance. Document the total interest paid over the payoff period and the total interest you would have paid on minimum payments — the difference is the outcome's financial value.
Proof required
Final account statement or lender payoff letter showing zero balance or 'paid in full' status, plus a brief calculation showing total interest paid versus minimum-payment projection from M1.
What gets checked
- Zero balance or paid-in-full status confirmed by the lender (not self-reported)
- The statement or letter comes from the same specific debt named in M1
- Interest saved calculation compared to minimum-payment scenario is included
Common mistakes
- Stopping at a small remaining balance rather than eliminating it fully — 'almost paid off' does not end the interest charge
- Not requesting a payoff letter for loans, leaving ambiguity about whether residual fees or prepayment penalties exist
- Not celebrating the result — debt elimination is a significant financial milestone and worth acknowledging explicitly
Resources
Foundationstart here
What a verifier looks for
- Confirm the statement or letter shows zero balance or paid-in-full — not merely a reduced balance
- Confirm the debt name and lender match the M1 plan
- Verify the interest-saved calculation is mathematically plausible given the original balance and rate