What is the Best Method to Attack Credit Card Debt?

Dave in Orlando, Florida is interested in how to attack credit card debt. His question to Robert Palmer: What is the best plan for paying off credit card debt with regards to high interest and low balance situations?

There are two ways to look at paying off credit cards: thereâ??s the financial and the psychological method. Financially, itâ??s better to attack the high interest rate credit cards. This is because each month you make a payment, as the balance goes down you pay less interest on those high rate cards because you owe them less money. On the psychological side, it is recommended that you attack the card with the lowest balance regardless of interest rate. Paying that smallest card off will give you a sense of pride in completion. Then, you can take the minimum payment from that card and pay it on the next smallest balance to achieve a waterfall effect. However, as this happens you are still paying a lot of interest on the higher interest cards. This is something you need to evaluate as an individual as to which method would work best for you.