From everything I’ve read, there are two general strategies for paying off debt.

1. pay off the credit cards with the lowest balance first
2. pay off the credit cards with the highest interest rate first

I admit that I waiver between the two depending on how much money I have to throw at the credit cards each month. I find that it’s extremely motivating to pay down/off the card with the lowest balance because I feel like I’m making progress. Yet, I know that it’s financially better to pay off the one with the highest interest rate first, but it’s so much more satisfying for me to have one less payment to make.

That said, once I do pay off a balance, I incorporate that extra money back into other credit card payments rather than spending it frivolously. As far as I’m concerned, it’s already budgeted as debt repayment.

Let me also say that I never pay only the minimum payment. I always pay something more - even if it’s only $10-25. Paying the minimum payment seems akin to prolonging debt and increasing the amount you’ll pay in interest. Any little bit more helps - significantly.

That’s why I’m not concerned with the announcement that credit card minimum payments are doubling, as the Motley Fool has recently reported. Good - debt is bad. The more you pay each month, the faster you’ll eliminate that nasty debt.