I like to pay off the lowest debt first regardless of the interest rate.
This is what I did about 12 years ago...We was living payday to payday.We had 4 credit cards totaling $5,000 plus a car loan....Instead of paying the card with the higest interst rate I pay off the card with lowest balance..This gave me the encouragment I need to keep on paying off the cards.
I paid $5,000 debt off in a 6 month time frame
I was carry this balance for over 2 years and was never making a dent in the debt because I was always charging something on it
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Here is what I did.. We bought only the neccesities we needed..I went on a very tight food buget which really help alot.
I set up 3 jars for extra spending money to get us to the next payday:
Extra grocery shopping trips -was used for only needed food item..
Fast food- 1 meal every 2 weeks
Blockbuster Rentals.
My check rules was strictly in force only used for Grocery shopping day, Bills,School Lunches,Gas, & Haircuts.Whatever was left at end of the payday went on one CC.
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Once you see where your money is going it is a real eye opener..We was nickling and diming ourself to death for things we didn't need...We even had extra money left in the jars at the end of payday.
