It makes better financial sense to pay down the highest interest rate first. But people get discouraged. It's a lot more gratifying for some people to pay off the smaller balances within a couple months. He added that once those smaller credit card balances are out of the way, to take the money that had been set aside to pay those bills and apply it to the balance with the highest interest rate. Muster all the funds available and get the debt out of your life.
Experts say the key to an effective pay-down plan is sticking with it.
Don't let up on the monthly payments as the card's minimum payments inch down and as bills get paid off. Fla. Unfortunately, many people quit before they get started. Rhode suggests that people track their spending every day for a month to get a firm handle on where their money is actually going. After tracking their spending, people can better decide how much they can afford to pay toward credit card debt. Brown bag 10 lunches per month.