How Fast Can I Become Debt-Free?

[Iowanian]

Debt snowball.

Pay off the smallest debt. Put that payment onto the 2nd lowest debt....
Find ways to save money, find ways to make extra cash.
Use that extra income for debt reduction and then eventually savings.

[Dante84]

Originally Posted by Iowanian

Debt snowball.

Pay off the smallest debt. Put that payment onto the 2nd lowest debt....
Find ways to save money, find ways to make extra cash.
Use that extra income for debt reduction and then eventually savings.

I like that idea, but do you suggest smallest first, or highest interest first?

[Garcia Bronco]

Originally Posted by Dante84

I like that idea, but do you suggest smallest first, or highest interest first?

Do the smallest debt first, but after that get aggressive with high interest debt.

[Oxford]

Originally Posted by Dante84

I like that idea, but do you suggest smallest first, or highest interest first?

Interest that you pay is opportunity lost (opportunity to save, opportunity to pay another loan). Therefore I would attack the loan that you pay the most interest on (not the rate). The trap is spending... keep spending and you'll never make any headway. Just make sure you allow yourself to spend some of the money you save (that way its not as much of a chore).

Credit cards are great, if you pay the balance every month. Another is track every nickel you spend to see where the money goes. You may find a way to save some money by adjusting your habits. There is a hole in everyones spending bucket.