Reply #48: what terrible advice... what is wrong with you people?

[PeterPuck]

I can't believe how many people here are advising
"Line 'em up, smallest to largest (NOT, as some will tell you, highest interest rate to lowest"

Use some common sense and not the 'what feels best' attitude that got you into the financial trouble in the first place.

It is pretty simple math. Pay the highest rate off first.

Paying off $5000 on high-interest department store credit (28%) vs an 8% loan could save you a thousand dollars in interest payments in a year. Take that $1000 and pay off that higher interest debt even faster. Compounding interest is going to keep you in debt if you don't get rid of those high interest payments.

On top of reducing interest payments. Get rid of any cards that are charging you an annual fee and reduce any other banking fees