The second program I'm going to look at,"Debt Avalanche", focuses on paying off high interest rate cards first instead of paying off the cards in low-high order. The premise behind this program is by paying off the higher interest cards first, you'll save money since the interest charges won't be as large.
Sounds promising. Here's my table (click to make it larger):
According to a Snowball vs. Avalanche calculator, paying down the debt in this fashion will save me $55.00 in interest. Meh. Pretty unimpressive, in my book, but I guess any savings is good savings when it all boils down, right?
In both scenarios, I'd be paying off Card 3 first, which fits in nicely with how I planned to do it anyway. So you don't have to go back to Friday's post, the plan for Card 3 is: First payment comes out on March 14 for $134.79 and I'll be paying $100.00 towards that card each month while paying the minimums on the other cards. Barring any emergencies, I'll make a double payment on the card this month and have the whole thing paid off in the next three months.
These two programs seem to encapsulate the most popular ways to pay off debts. Tomorrow, I'll look at two other options that I'm fairly certain I won't use, but we'll discuss because I like to hear myself type.
Day Sixteen Spent: $0.00
Day Sixteen Saved: $0.00