All depends on your discipline level I guess.
I personally found "stacking" to be my solution: paying the minimums on most cards and throwing all available $$ to one card until it's paid off. I started off with a small-balance debt ($300), conquered it and felt great! Then I worked on my high-interest debt, ending with my credit union card (7%). Every time I paid one off, I either cut up the card or froze it in the freezer (old trick-freeze the card in a small brick of ice so you have to really think about what you're doing while it melts if you want to use it) but don't close the cards!
I got a handle on monthly minimums by forcing some discipline: I'd divide my minimums by 2 and send out that amount ON PAYDAY via online billpay. So, you get paid on the 1st and 15th, set bills to go out THAT DAY. And on your 15th check, automatically send half of monthly rent to a savings account. Whatever you have left you can use for "stacking" or whatever.
If you use a DMP, I'd say to still throw all available $$ to it otherwise you're tempted to just overspend (which is what gotcha here in the first place). Been there, done that.
What's everyone else think here?
Message Edited by KYgirl on
07-29-2008 04:34 PM
