Financial experts have a lot of advice when it comes to getting out of debt, but sometimes the most logical way of reducing debt are not the most motivating. Money gurus like Suze Orman and others understand that like losing weight, reducing your debts takes constant support and progress. For that reason, we suggest that you turn you debt upside down a bit and work you way from bottom to top. Consider this:
- Order your debts from lowest balance to highest balance.
- Figure out the maximum amount of money you can spend on your debts each month.
- Pay the minimum payment on all debts except for the one with the lowest balance. Pay as much as you can on this bill and be sure to pay MORE than the minimum payment.
- When you’ve paid off the lowest balance, continue to spend the same amount to pay debts, but throw all you can at the debt with the next-lowest balance.
- Continue this payment pattern until all of your debts are paid off.