It will take both time and money, and you’ll have to do a little work to drop those balances to zero. But, in the end, it’ll all pay off when you’re debt free! Here’s how to do it:
Gather up all your debt statements. Take a piece of paper and list each account, the current balance, the current minimum payment and the current interest rate. Then organize your accounts, either from lowest balance to highest, or from highest interest rate to lowest. It’s your choice, but many folks like to tackle the smallest debt first, because paying it off gives them a sense of accomplishment, which leads to more motivation to continue on the path of getting out of debt.
Pay it down!
Continue making the minimum payment on all your debts except the first one on your list.