There are a few different methods of figuring out where to start, but I will explain the method that I used to pay down thousands of dollars of debt over the last couple of years. The Snowball Effect The method that worked the best for me was to start with the smallest balance first. You focus on that debt first, putting every cent that you can towards the balance, while making just the minimum payment on the other debts.
Once you have paid your smallest balance off, you take the amount that you were paying on that card and add it to the minimum payment on the next smallest balance. You keep doing this until you have all of your credit cards and other debts paid off. Pay less Interest Another wise move if you have several credit cards or other loans, is to consolidate them into one payment with a lower interest rate. By arranging a lower interest rate, more of your money goes toward the actual principal rather that interest payments. This way your monthly payment stays the same, but you are paying down the debt .
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Tracy
