I have received my tax return and applied about half of it to debt already. As it stands, here are my current debt balances:
Capital One: $1283
My goal this year is to get my credit card balances at $12,000 or below. Selling the house should help me get to this point fairly quickly, but if I can not or ultimately choose to not sell the house, I am going to have to get creative in how that is going to happen.
Mainly because the Providian card (bought out by Chase) upped the interest rate to 26%. Only $144 of the payment is going towards principle. Why did they up the rate? I have no idea. I called and attempted to get the rate lowered, but to no avail.
So now I am questioning paying down the lowest amounts first, because it seems as though I make ZERO progress on the Providian debt.
What to do? Paying down the lowest balances first does indeed give a much needed boost to the brain with the "I PAID THAT OFF!" exclaimations. Seeing that the highest balance isn't moving really makes me angry. It should make me angry enough to get the other balances out of the way in order to attack it; but it only makes me want to do things out of order.