4 Oct

You will be given many advices on what to pay off first

It is my belief that the old debt should be paid off last if they are not pressing.

By paying off the new debt you’ll save more money on the interest, etc by paying them first.

The older debts can be negotiated so that you only have to pay a percentage of the balance.

I think that you should pay off the debts which frees up the most cash for you. So if you do the currents ones first you should be able to accomplish that. Get a 500 or 1000 dollar loan from WhoNeeds500 (official website) and make sure you pay it back on time – and you’ll be just fine!

Another thought is to do it the Dave Ramsey way. He proposes doing a snowball method in which you put your debt in order from the lowest balance to the highest balance. Then you pay minimums on all the debts and then any and all extra is paid on the debt with the lowest balance. Then when the smallest (lowest balance) debt is paid off you take all the money that was being applied toward it and put it to the next debt.

The idea is that you would feel a sense of accomplishment in paying off something so you don’t feel discouraged that you are not making any progress.