Michelle Singletary is the author of The Power to Prosper. In her book she discusses the ‘Debt Dash’ as a method to eliminate credit card debt. Singletary was contacted by a couple in California to ask her advice and keep them motivated on their plan to eliminate their debt. The couple from California is looking to pay down $49,000 on three credit cards.
The key to the Debt Dash is to attack the debt with the lowest balance first. This serves as a motivator to keep working and not abandon the plan. It is a psychological boost to eliminate debt. If you have two debts of about the same amount, pay off the one with higher interest first. Also, be sure to let your creditor know that your extra payments are to go towards your principal and should not be counted as an extra payment. Debt reduction can be difficult, but setting a plan is essential to staying on track.