Once you have
extra cash to pay
off debt, you want to make the
most of it. The secret is to pay
off highest interest debt first.
Pay the minimum on all but your
highest interest debt each month.
Then, pay off as much as you can
afford on that most expensive debt.
This way, you pay the least amount
of interest over the duration of
your debt reduction program.
Sometimes, you can
transfer
debt from a high-interest-rate
account to one with a lower rate.
As long as you're really paying off your credit card balances, another option is a home equity loan or line of credit. You can borrow money against the equity in your home (usually at a reasonable rate) and use it to pay off your usurious credit accounts. The extra perk is that home-equity interest is tax deductible.
On the other hand, if zero balances tempt you to spend more money, a home-equity account is not the way to go. As your mountain of debt increases, you could lose your house.
