Breaking It Down--A Debt Reduction Strategy

Image via WikipediaI enjoyed this post from Master Your Card
outlining a strategy for getting out of debt. Seems there is some controversy about deciding in which order to pay off your debts. The MYC author recommends paying off high-interest debt first (which is what I do), while David Ramsey recommends the snowball method, wherein the debtor tackles the smallest debt first and then applies those same payments to next next smallest debt. This is supposed to give you a sense of accomplishment as you retire each debt, modifying your behavior towards retiring your debt.

I suppose it depends on how you're wired which works best for you. I also guess the important thing is setting and sticking to a strategy in the first place.

Oh, and the 1st strategy, according to MYC? Stop using the bleeping credit cards! Duh, huh? I wish I'd thought of that a couple of years ago!