One common debt elimination program…
…is to pay extra every month toward your smallest debt. Here is how it works-
Stop using your credit cards and lines of credit.
Add up all of your debt, including mortgage, home equity loans, car loan payments, credit cards, and any other loans.
Determine how much extra you can pay every month above that total, to come up with your new monthly debt payment amount.
Every month, pay the minimum toward all accounts except the smallest.
Pay the remainder of your new monthly debt payment amount toward the smallest loan.
The amount you are paying above the minimum due on that smallest loan will increase every month until it is paid off.
Now move on to the next smallest loan. Take all of the extra above minimum payments in your new monthly debt payment amount and apply it to your new smallest loan.
Continue until all of your loans have been paid off.
