The Frugal Duchess hosted Carnival of Debt Reduction #29, and this week’s Flashback comes from Mighty Bargain Hunter: Which debt to reduce first?

If debt isn’t producing income, it’s usually best to pay it off ASAP.  But getting a debt completely out of the way, especially an amortized debt with a fixed minimum monthly payment like a mortgage, frees up a ton of money for other purposes.  The two debts in the article were two mortgages.  In most cases, mortgages aren’t the worst kinds of debt to have, but the payment does need to be made each month until it’s paid off.  Once it is paid off, then it’s gone, and this could be hundreds or even thousands of dollars per month that could be put to other uses.

So, paying off non-performing debt is good, but paying off the debt that frees up your money the quickest should be given some consideration.

• Debt reduction tip: Make a plan to do something easy It's New Year's Eve and a time for resolutions  It's a time for fresh starts, for new commitments, for laser-sharp focus on all of our ills. It's no better time than the present to make a plan right now, but since this particular right now coincides with the new year,......
• Flashback: Debt reduction math vs. psychology Carnival #2 was posted over at No Credit Needed. (You'll be seeing a lot of Flashbacks from his carnivals -- he's done a lot of them!) One article from Five Cent Nickel in this carnival has gained a lot of traction: Dave Ramsey is Bad at Math. Actually, it's the......

• What kind of snowball do you want? Chances are good that you've heard of the "Snowball Method" of debt reduction. It works like this. Say you have several debts to pay off. You add up the minimum payments on those cards, add in an extra "acceleration" amount to one or more of the cards, and pay down......
• Are Hidden Fees Keeping You From Meeting Your Financial Goals? Hidden fees are nasty little critters that can eat away at your credit card balances, or your checking accounts and you may never be the wiser. If you are stuck wondering where it all goes at the end of the money, it's time to do some investigating to find out......