Get Rid of Your Debt
Paying off debt in theory is easy. It’s just the execution that is hard. There’s two common approaches. The snowball approach, where you list your debts from smallest to largest and then try and knock off the small ones first so you feel all good inside and progress from there. But it’s garbage. It just reinforces feelings over logic, which is the opposite of what we’re trying to do.
We’re trying to make logical decisions.
So use the stack method. In this method you list all your debts. You can use credit.com, creditkarma.com, etc. to get a credit report which lists all your debts. You can also use mint.com, but you have to link the debts. Then once you have a complete list (excluding your mortgage) you list them from the highest interest rate down. Then you put all your extra debt repayment dollars on the highest interest first and work your way down.
Credit card 1: 24% - $500
Credit card 2: 18% - $4,000
Car Loan: 3% - $10,000