Log In It looks like for long term success, you're better off paying off small balances first. Generally we think we should pay down ones with the highest interest first, but really, getting rid of those small ones will motivate you to keep up the good work and pay off even more.
That's what I'm doing. I have 4 credit cards to pay off, and one is quite low now. It also has the highest interest raqte, but even if it didn't, I'd tackle that first, because having 3 cards instead of 4 to pay down will be a huge motivation for me. I should be clear of the small balance in around 6 months, then the next smallest balance about 6 months after that. In the meantime, I'm paying over the minimum on the other cards as well, so they're also coming down. I hope to be free of credit card debt by the end of 2014 - sooner, if I can manage it.
One thing to consider is that any accounts that are in collections can likely be settled for a fraction of the balance. Like 30% of the original balance. So if I were to accumulate a lump sum I would call them and ask which one would give me the best deal, then GET IT IN WRITING! Once you have it in writing you can pay the settlement. Then keep that paid in full letter forever.
