kaforeningen

  Facing an overwhelming credit card mass directly in the face can be extremely intimidating, if not crippling. A friend of mine recently faced this challenge, while trying to get her personal finances in order. She came to me for help, and we put together a feasible plan. First off, we looked at all twelve of her credit cards and put them in a spreadsheet. On the spreadsheet, we listed the total balance, the interest rate and the current month’s payment due. Now, you probably think that we would list them in order of highest interest rate to lowest interest rate, right? Wrong. We listed them in order from smallest balance to largest balance.So, why did we list them in that order? Simple answer. Paying off the balances one by one will create momentum. It will create a sense of accomplishment one card at a time. If you try to tackle the largest card first, it will take a while before you see the “payoff” of your hard work and discipline. One reason that these bills have piled up and bec