Which credit card should we pay off first?

Question: Would it be wiser to make extra payments to pay down a credit card that has a 0 percent interest rate with a somewhat large balance (around $6,000) or to make extra payments to pay down a credit card with a smaller balance (around $2,000) and 11 percent interest?  I'm trying to decide which one to pay down on first. The card with 0 percent is for the life of the loan.  

Answer: The best way we’ve found to eliminate credit card debt is:

1. Stop using the cards (we like the plastic surgery approach — cut them up with scissors).
   
2. Generate a monthly excess.
   
3. Pay everybody you owe, something.
   
4. Pay the most (minimum payment and all the excess you can find) on the smallest debt until it is paid off.
   
5. Take the amount you were paying on the smallest debt and apply it to the next largest one.
   

We recommend paying off the $2,000 debt first, then attacking the $6,000 with a vengeance. You’ll save a boodle on interest by paying down the 11 percent card also. But more importantly, you’ll have emotional success by quickly eliminating the burden of that particular debt.

We cover this issue in depth in the debt chapter of our book — and there are several other books in our online bookstore that will help you in this area.