@mwmiller wrote:
The answer to your question depends on a few factors, such as, Is your goal to get out of debt as quickly as possible? Is your goal to lower your overall payments and thus increase cash flow? Is your goal simply to improve your credit score as quickly as possible in order to better position yourself for a large purchase, such as getting a mortgage for a house?
Personally, I have tried several methods to lower debt. The first step is to establish a workable budget and stick to the budget. Debt payoff is basic: Spend less, earn more and throw all your cash flow at the debt. I have tried Dave Ramsey's snowball, which is created to help "broke" folks who have no discipline. I personally chose not to follow Ramsey's model because the math doesn't work. I paid down debt faster by paying off the highest interest debt first and working my way down the list. (This worked best for me, but I have strong income, I'm very disciplined, and I have an above-average-knowledge of financial principles due to my education and career experience.)
If you need to increase your credit score quickly or make your debt more manageable, I've seen people have great success by consolidating high interest debt and paying it off with a lower interest personal loan. Then you throw all your cash flow to paying down that personal loan. The personal loan also is a different type of loan, so it changes that debt from reporting as revolving credit accounts to one installment loan. That can improve your credit score quickly, while also lowering the high interest debt.
Again, the best strategy for you depends on your situation and your goals.
^^^ This
