Just want to make sure that you understand something here: You need to have a plan. You need to stick to that plan. You need to make sure that you and your dh are both committed to this plan. I don't know how old your children are, but if old enough, you need to make sure that they understand what you are doing and that the changes you are making will not last forever. Second, you and your family are going to have to make some sacrifices or you will not get your head above water. It's to your advantage to get rid of as much debt as you can as soon as you can. At the same time, you need to be saving something, but you are so far underwater that I don't think you should wait for some date in the future to start attacking your debt. Why? Because something will always come up that takes precedence. You need to attack your debt right now and stick to it. Now, you say you only have $150 to pay towards this debt. Let's assume for a moment that you have already accounted for the $100 savings per month. That means you need to come up with another $150 to reach the example of $300 -- which given your income I think is the very least that you should do. If you get paid twice a month, that's $75 a paycheck. Surely there is some way that you can cut expenses for groceries, etc., to get to $75. You will need to make some sacrifices to get out of this debt. You can't put off paying down this debt. If you commit, say, $300 to paying down the debt each month, then you will have paid off four or five credit cards by the end of the summer. I can tell you from personal experience that this will lift a heavy weight from your shoulders and will give you energy and confidence to start tackling the big credit card bills. At the same time, you can't put off starting a regular savings program -- you need to do this for practical reasons (to pay unexpected expenses or as part of a savings strategy for Christmas, etc.), but also because you need to get in the habit of saving. Successful saving is a habit. Even if you only save $25 per paycheck, that is a good thing. Of course, you will be saving more. Others on this board have some really good suggestions, especially as to saving money in the long run. But I am telling you from personal experience that the least of your concerns should be how much more interest you will pay in the long run if you pay off one debt rather than another. You need to lift this weight from your shoulders. The easiest, fastest way to do that is to pay off the small balances first. You get instant gratification and this gives you the momentum you need to carry on. If you attack your largest debt first, you are likely to become discouraged every month as you write check after check after check for those small balances. Another advantage of getting rid of the small balances first is that you don't run the risk of missing a payment (by accident) and then getting hit with late payment fees. The fewer checks you have to write each month, the easier it is to keep up with your money. Like I said, I'm sure there is something you can do to come up with the extra $150 a month to begin attacking your debt with $300 per month. And if you do that, then you will be debt free within 18 months. You will also have learned that you CAN control your finances and, thus, your future. As someone who has been in your position before, I assure you that following this example -- even if you miss a couple of months of paying down the debt because of an unexpected expense -- you will change your financial future for the better. Good luck.
