No. of Recommendations: 3
Welcome. Please realize that that post you replied to is over 14 years old, so the advice you have given hopefully won't be much use to the original poster, assuming they have paid off their debt by now.

I have recently found a resource that taught me a schedule to making the most out of my payments.
Step one :
take your cards and write down the amount you owe.
#2 write the minimum due
#3 divide the amount due by the payment. this will give you a number and a ranking of which you should pay-off first. The lowest number should be first ......
If you can add even $20 to that card each month, while making your other minimum payments, it will speed up the pay-off date.
After paying that card off apply that to card two on your list and so-on.

This is a partial summary of David Bach's 'DOLP' method.

Depending on the interest rates on each debt, this method can end up costing you more than simply using the same amount of total payments and paying down in interest rate order, from highest to lowest.

David Bach, Dave Ramsey and others who support paying down debt in an order other than highest rate to lowest rate posit that the quicker payoffs of the smaller balances provide motivation that will encourage the debtor to continue paying off their debt. This might be true for some people. However, others will get more motivation by seeing the their total debt drop faster, which is what will happen if the highest interest rate debt is paid down first.

For each individual, the method that will keep them motivated is the best one to choose.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.