1. Make a list of your debts, with balances, interest rates, account names, and monthly minimums.
2a. List your debts, lowest balance to highest balance OR
2b. List your debts, highest interest rate to lowest interest rate.
(2a will give you a quick emotional “boost” when you pay off that first, smaller debt… 2b will give you a “mathematical” advantage, as you are paying off a higher percentage of over all debt.)
3. Pay all of your minimums.
4. How much EXTRA can you put towards your debt each month? Pay every extra dollar that you have for debt reduction to the first debt on your list that you created in step 2.
5. Once you have paid off your first debt, “snow-ball” the TOTAL amount you were paying to your second debt, and then to the third debt, and so on until you are debt-free.
The above is a super-simple, fool-proof method for getting out of debt. You can use the lowest balance method or the highest rate method whichever you choose.