Subscribe to RSSFlashback: Mind over matter
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.