One of the most widespread myths about getting out of debt is that you have to pay out the high interest rate debt first in order to get out of debt as fast as possible.

The truth is absolutely the opposite – you need to pay out the smallest debt first in order to get things started in the great deal of becoming debt free.

The reasonable mathematics may suggest you pay the high interest rate debt first. However, a human being is two thirds about emotion and one third about common sense. The point here is to make you see some success, some movement towards becoming debt free. And that’s when the determination comes – when you see the results and they prompt you to be more diligent and persistent in paying off your remaining high interest rate debts, which could take more time. You just need to see some quick wins in order to believe you can make it through. Start getting rid of the easier debts to get positive and get moving.

Now, let’s see the basic points about this particular strategy. Start making only the minimum payments on all your debts and choose the one you’ll be accelerating the payments towards. One debt at a time is good enough while you continue making minimum payments towards the rest.

Start with saving $1000 for emergency cases. When you’ve saved enough, start to pay out the smallest debt intensely, diligently and aggressively. Make a list of all your debts (except the house one), start with the smallest balance left to pay. Don’t mind the interest rates unless several debts have the same balance to pay out. Choose the smallest debt to start with. This will give you prompt feedback and you will be better motivated to stick to the plan and get out of debt once and for all times.

Get the adrenaline rush every time you get rid of the other debt. Remake the debt list every time you get one step closer to financial freedom.

So, your debt strategy is to eliminate the smallest debt first to get moving. Motivate yourself every time you pay out another debt, proceed to the biggest balance debt aggressively and diligently. This is the only way you can get out of debt without being caught in a financial trap with debt management companies. Knowledge, diligence, self-discipline and motivation is the key aspects to becoming debt free!