I take a completely different approach. I have always been very responsible with my credit and this has provided me with0% credit card 5% car loans etc and I loan up on debt as long as the banks and lending institution are willing to dole it out. I have used the proceeds of their money and stuck it into a MMA accout that pays better than 5%. On 20K of debt I earn over a 1000 a year by being the bank. While I can appreciate that some miught feel having no debt is comforting to me it is costly when I can put my moeny to work while at the same time increasing my liquidity.
With respect to paying off smaller bills first I might suggest you would be better off to simply line up your debts from highest interest rate to lowest interest rate and make maximum payment on the highest debts and work you way down hill. This would be a far better alternative to paying doiwn debt.
