Where do I start?

iVillage Member
Registered: 03-21-2002
Where do I start?
4
Mon, 06-20-2005 - 3:57pm

I'm in debt, naturally... that's why I'm here! But my question to you is where do I start with my debt? Do I start with the lowest balance or the highest balance? I would think to start with the lowest because you can pay them off quicker, and I like how good it feels to have something paid off! So far, this is what I've managed to get myself into...

CC's balances are as follows:

18.05 Paid off next week, feels great!
170.00
260.00
300.00
500.00
550.00
1050.00

Plus a loan for school about 2500.00 but I get my monthly payment taken out of my check each two weeks.

Let me know if you have any suggestions. I'd like to have it all paid off in a year! (I work full time and go to school full time, so a year is my "realistic" goal!)

iVillage Member
Registered: 04-23-2003
Mon, 06-20-2005 - 4:10pm
I'm delurking......I'd personally start with the small cc bills, all the $300,$500, etc. I'd try to knock those out one at a time and personally start smallest to largest regardless of interest rates. Unless, of course, your highest CC is at 29% or something ridiculous like that. I just think it's more psychologically encouraging to do it that way. Plus, you'll rid yourself of the $15 minimums and can snowball it all toward the larger debt and have less "bills" to worry about. KWIM? Good luck.
iVillage Member
Registered: 05-30-2003
Mon, 06-20-2005 - 11:26pm

That's exactly what I'd do as well-I like the 'quick' wins that help free up more money to throw at the next bill in line. Basically, that is 'snowballing' in a nutshell. Once you get one paid off, take the payment that you've been paying and add it to the minimum payment of the next bill, and so on.

Sounds like the snowflaking challenge we do here would also be a big help. Any extra money you can find also gets tossed at the current 'snowball' bill that you're working on to help get it gone faster. Those small amounts make a big dent in the long run!

Good luck to you-I think you can be debt-free in a year or less!

Lisa

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Tue, 06-21-2005 - 9:36am

Hi there and welcome to the board.

All my best,
Danni

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Tue, 06-21-2005 - 1:51pm

Welcome.

I personally like to payoff the credit card with the smallest balance. Afterwards, you may want to take the minimum payment from that credit card and add it to your next target credit card. We call that snowflaking. Check out our snowflaking challenge.

MYM