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I always recommend tackling the lowest balances first... then take the full payments and tackle the next lowest... then take full payments and tackle third lowest...
The elimination of a full account has a huge psychological affect that keeps you motivated to take on the next... there's a snowball affect if you keep that up.
Money wise you would be better to tackle the higher percentage, but there is a much higher success rate by going after the small balances first.
Go to money experts you'll get valid reasons for both approaches and I could debate both approaches, but I've really come into believing the low balance approach - a few financial folks like Dave Ramsey and Suze Orman have become strong advocates of this approach as well. You get to see a lot of small wins that keep you motivated to keep going after the debt.
Thanks Dave, good advice. I'm lucky in that I just started a good paying job and have my expenses way down. I probably knock out the 1 couple lowest balances first.
Exactly, don't get too hung up on the interest rates. I would list them smallest to largest and get after it. After you knock the lowest, it will give you some traction and confidence to keep going. It will get easier with each one you knock off. Watch your spending and every spare dime goes toward this goal. When you are done, cancel all of these credit cards. Having this type of debt is insane.
Hitting the high interest rates first can save you a little more money, but paying off the lowest balances first puts you into a safer cashflow situation along with giving you the motivation and sense of accomplishment Dave mentioned.
The best thing you can do is to combine the best of both methods to suit your particular needs. I'd pay it off starting from the top to the bottom in the order they're listed.
Whatever order you pay them, do not make any more purchases with any of the cards.
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Smallest To Largest
Exactly, don't get too hung up on the interest rates. I would list them smallest to largest and get after it. After you knock the lowest, it will give you some traction and confidence to keep going. It will get easier with each one you knock off. Watch your spending and every spare dime goes toward this goal. When you are done, cancel all of these credit cards. Having this type of debt is insane.
