Re: John Cummuta's 'Your Debts Could Make You Rich'

> You start with the smallest one because that one and it's interest payment
> can be eliminated the quickest. Then you take that payment and add it to
> what you have been paying the next smallest, and so on. I loaned my
> workbook out and don't even remember who has it anymore, but there are
> charts and graphs in it that proove that this is the most cost-effective
> and quickest way to get the job done.

Any plan you stick to will work, including paying the smallest balance first. However, it's certainly not the most efficent when crunching the numbers. You always want to pay the most on the highest interest card no matter what the balance.

You also want to shift your highest interest to the lower interest cards. Just don't make the mistake of using the "transfer (highway robbery) checks" that your cc company send you. The fine print usually reads something like only 3% to transfer $xx. Well that's really like 36% for your one time transaction if you figure it on a yearly basis.

So, how to transfer? Use your best rate card for everything. Groceries, gas, everything, etc... until you max it out. Then pay off your high rate card with what you would have normally used cash/check for. But you have to be disciplend and not charge more than you normally would, or it doesn't work. Pay the min on all intermediate cards.

USE BILLPAY through your bank. The cc companies (in my opinion) use a bunch of dirty tricks these days (late mailings, not opening their mail, etc) to add late charges. Bill Pay will stop this. Those fees should be illegal if you figure the percentages, but they have great lawyers.

CC's are great if you use them right, now if I could find a 6% reward program instead of 5%.