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.

• Carnival #151 is up at Mighty Bargain Hunter Here are the picks from this week's Carnival of Debt Reduction: Think Your Way to Wealth lists thirty-five places that you can find the extra cash to kick off your debt snowball. No Credit Needed gives five free and inexpensive ways to reduce your debt. Credit Withdrawal talks about getting......
• Debt reduction tip: Zero your interest Note: This tip isn't for everyone but I'll try to give enough information to outline the risks and rewards. Say you have a debt reduction plan.  Say you have something like No Credit Needed's Debt Reduction Guide and are following it through.  Say you're doing really well with it, you......

• When Will Interest Rates Go Up Again? The Federal Reserve will currently loan to banks for the low low rate or 0.25%. This is known as the Federal Funds Rate and the Fed decides what this rate will be based on the state of the economy. With a rate that is as close to zero as it......
• Creating Effective Long Term Non-Retirement Savings Most Americans have the problem of not saving enough money for the future. They live on much more than they make, have all sorts of debt, and haven’t done really anything for retirement planning. They certainly have financial problems to deal with, but what about people on the other end......