Here’s an idea.

Why don’t you take the smallest balance you have and work on paying that down. When you are completely finished with it then you can move on to another balance.

Working on your smallest balance first makes managing your money seem easier. If you can wear away at that $500.00 balance you will have a greater sense of accomplishment than if you cannot see past a $2500.00 balance.

While some people think it is better to pay off the higher rate balances first I think it makes sense to tackle the smaller amount first regardless of the interest rate.

If you are so swamped in debt that all you are doing is making the minimum payment on each balance then it makes more sense for you to pay off a smaller amount and then work on the larger amounts later.

This does not mean that you ignore some of your bills. You can continue to make the minimum payments on the other accounts….but make MORE than the minimum on the target account.

You can use Microsoft money (or an excel spreadsheet) to track your progress and you can really see the debt balances going down.

This is more manageable and gives you a better sense of control and you can see your progress. You can tell yourself what a great job you are doing and then you will be more likely to work harder on reducing your debts.