Best way to reduce my CC Debt?

[rasczak]

i'm going with the debt-snowball route. so far i've paid off one card in 4 months. granted it was a $500 limit and I was paying $125 per month. now that amount goes straight into my dell card to pay that off in 10 months. once i pay off the dell card i start on my wife's kohls card at $185/mo + minimum payment on kohls. I should be done with everything in 2 and a half more years.

 

[Juddog]

i'm going with the debt-snowball route. so far i've paid off one card in 4 months. granted it was a $500 limit and I was paying $125 per month. now that amount goes straight into my dell card to pay that off in 10 months. once i pay off the dell card i start on my wife's kohls card at $185/mo + minimum payment on kohls. I should be done with everything in 2 and a half more years.

I'm doing the same thing, but with the addition of the weekend job I'll have all my debt paid off in approximately one year going along my current schedule. I'm down to approximately half of my debt level from 2 years ago, so my progress so far is excellent, and the feeling you get each time you close a card is fantastic.

 

[rasczak]

I'm doing the same thing, but with the addition of the weekend job I'll have all my debt paid off in approximately one year going along my current schedule. I'm down to approximately half of my debt level from 2 years ago, so my progress so far is excellent, and the feeling you get each time you close a card is fantastic.

Great job! Question though. Why close the card? Is it active and in good standing? If not then I could understand. I will not close any of my cards. I want to be able to keep the debt ratio that they provide me as well as the credit length they also provide.

 

[Juddog]

Great job! Question though. Why close the card? Is it active and in good standing? If not then I could understand. I will not close any of my cards. I want to be able to keep the debt ratio that they provide me as well as the credit length they also provide.

Well in my case I closed some of the crappier cards, and kept the good ones. I used to have some with an annual fee (closed), I had some others (they closed it on me because I had a zero balance), so I kept the best 4 cards. Those with the lowest fees, the best rewards, etc..

I like the rewards cards since I can use them for business expenses, so if I travel I get some nice rewards built up.

 

[halik]

Debt snowball is only really for people that are TERRIBLE at managing money. It just works on behavioral finance - the premise that you won't "miss" the minimum payment on a debt you've paid off and roll it into the next up.

Anyone with a least bit restraint can save a ton more money paying off the account with the highest interest rate.