Frugal for Life hosted Carnival of Debt Reduction #34, and this week’s Flashback comes from Get Rich Slowly: Two Approaches to Debt Elimination.

Facing debt reduction isn’t easy, but if several debts are in the mix, which one do you attack first — the small one, or the high-interest one? JD found that even though paying off the highest-interest debt first would have resulted in the most saved interest, it didn’t work, because those debts just kept hanging on, and they defeated him time and again.

Then he tried knocking out the smallest one, and that worked. With one less payment to deal with, knocking out the others was easier, both financially and psychologically.

• Prime Time Money has posted the Carnival Thanks to Prime Time Money for hosting this week's Carnival of Debt Reduction!  His topic is the new credit card rules just passed by Congress.  Here are his picks for this week: Christian Debt Help talks about a debt reduction strategy. My Wealth Builder says bye-bye to the mortgage! The......
• Debt reduction tip: Enlist the help of your spouse My wife and I just celebrated our seventh wedding anniversary.  Some of the biggest arguments we've had during that time have been about money.  This is true for many married couples as well. Recently we've had a lot of expenses crop up, some planned for, others not.  We're a little......

• Charitable giving vs. the value of compounding and debt reduction—a dilemma and temporary solution On Saturday, Trent at the Simple Dollar blogged about frugality and social giving. I've been pondering something related for a few weeks—giving to charity and getting compound interest. You see, I'm 22 years old. This gives me a tremendous edge with compounding. Starting me investing now can make a big......
• Personal Finance and Debt Reduction carnivals! They're up! Step right up and get your FREE money posts! MyMoneyBlog.com did a great job with this week's Carnival of Debt Reduction. Eight posts this week -- both with people who advise others in debt reduction and those who are reducing debt themselves. I encourage you to check......