Wednesday, January 03, 2007

Getting on the debt payoff track

Now that most of my regular bills (cable, phone, electric, etc) are current I can now focus and get on the road to aggressive debt pay off.

One strategy that I have in mind is to pay all the bills using the main paycheck. The pay check from the part-time gig will go towards one credit card until that card is paid off. I am not using the highest interest strategy at first, but the smallest balance. The reason for this is psychological. Once the credit card with the smallest balance is paid off (and I get an emotional boost) I will then focus on the card with the highest balance and or interest (which ever is more costly).

5 comments:

Always.Funky.Fresh said...

I've never really been a fan of the high interest card first thing. I do exactly what you're doing. I pay the small balance off first and then attack the next balance until I'm done. As long as you're attacking debt, I think you're good.

kiesha said...

I do the smallest balance thing too. I figure, why let those small ones continue to accrue interest when they could've BEEN paid off?

Tired of being broke said...

I am using the same line of thinking. Plus I just want the satisfaction of knowing one card is paid off. This goal should be accomplished before summer.

Cash Money Brother said...

Happy New Year!!

Smallest balance first, it's how I paid off my numerous school loans. Keep up the good work.

Bklyn Diva said...

yup that's how I cleared my CC debt after college.. I won't even tell ya how many cards I had LMAO but it took me 2.5 years to pay them all off..

I'm attacking my student loans this year.. *sigh* wish me luck LOL this is when I wish I went to a state school or better yet.. DIDN'T LOSE MY SCHOLARSHIP!

by the way congrats on getting your regular bills back on track!