I've started to try to pay my debt down faster. I have heard alot about this "snowball effect" to pay down debt. I have been doing alot of reading on the subject and have two different view points on which card to start with.
One persons view point is you start with the card with the lowest minimum payment monthly...never mind about the balance.
The other person I read says start with the card with the lowest balance....don't focus on the minimum payment at all.
It may be quibbling a little...maybe it doesn't matter where I start as long as I start, but I'm a Type A person and want to do this right. Most of my balances are pretty straight forward...it's the two that I could possibly start with that Im questioning.
#1 card...balance of about $790 with minimum payment of $35 per month
#2 card...balance of about $990 with minimum payment of $23 per month
So....need to know which one I should start with and if anyone has done this and did it work well for you...definitely anxious to get started...I only have about an extra $100 to put towards this plan, but I know it will get better as each bill gets paid down.
I've also read to start with the card with the highest interest rate. To be quite honest, I don't think it matters all that much which card you start with as long as you are doing something!
Is there a reason you want to go snowball over paying off your highest rates first?
Without knowing why you want to go that route, I'll just add that you do save the most money and sometimes time when you attack debts w the highest interest rates first. Are you you don't want to go that way?
No particular reason...other than its what I've read to do in books. I suppose there is something psychological about getting rid of some of the cards...hence the reason to start with the smaller balances. Honestly though...some of my higher interest rates are my smaller balances.
I have one very high balance that im paying on monthly that happens to be a CO....so at this point no interest on that one.
I made a chart today and im starting with my lowest balance I guess...not worrying about what the minimums are. We shall see how long it takes me.