The only reason I can think of (and I do from time to time) is to get cash back with a purchase. Saves a trip to the ATM for $20 of pocket cash.

I agree - getting rid of the smallest balance provides quicker satisfaction and further simplifies things as time goes on. My wife and I figure that getting debt free in this way "cost" us less than $300 over the three years it took us - and we got rid of half of the payees in the first year. Good to see fewer bills…

8. If your employer offers matching on your 401(k), take as much of it as you can get.

5. Life is going to hand you emergencies, so keep at least $1,000 in your savings account for those emergencies.

@tidymaze: Strong analogy. Founded in personal experience? I'll recall that phrasing the next time I encounter corked white wine (never again, I hope.)

Wine _should_ be stored so as to have the liquid in contact with the cork. Otherwise, the cork will dry out, crack, and allow air (oxygen) into, and spoil, the bottle. It's less important with today's modern seals, but if a bottle is corked in the traditional way, it needs to have the cork kept moist. Contemporary…

I think tone means a great deal, here, too. "Well....." could mean the speaker is preparing to equivocate, qualify their answer, OR make some crap up to cover their butt.

@AmishJohn: We just bought a used 2007 Camry (for cash - no payments in our house) and let someone else take the hit on the original depreciation. There's nothing saying you'd have to buy a _new_ hybrid. I think with lots of 2nd series hybrids coming off lease, you might also find a deal with good ROI.

When your savings makes enough for you to live on, you have enough.

@dinalohan: The Envelope System: it worked for grandma. Once it's gone, you've reached your spending limit for that category.

@TheFu: Good point. Emergency funds are a big cushion between you and life. Our emergency fund has an emergency fund of its own. We also save for big things (like replacing a car or Christmas gifts) separately - those aren't emergencies, they're expected expenses.

@NorwoodIsMyHero: Good point. Education certainly doesn't guarantee applied learning. Re-phrase: People who are aware of the pain of the math don't get into debt. I myself clawed out (and have been out for 5 years!) after realizing the pain.

@martin_jones: doublekiller

@NorwoodIsMyHero: Actually, if you're (one is) in deep credit card debt, you're already ignorant of your own behavior, and the motivation you need is to see some progress. Like losing the first 5 pounds or running your first mile. People who are good at math don't get into credit card debt in the first place.

@JCMasterpiece: Hear, hear! Pay off the LOWEST balances first. Get rid of some payments entirely, then send those amounts to the other creditors. You'll feel like you're making progress.

I've got toolboxes for every purpose: plumbing, rough carpentry, demolition, etc. Five indispensable things you'll find in all of them: A hammer, tape measure, quality utility knife, gloves, and safety goggles. ALWAYS keep those in reach.

@Alexander Ward: Cheers

Link to previous EventGhost article is 403.

@timgray1: Hear hear! If you can't afford something, you CERTAINLY can't afford to pay for it over time with interest.

@RenRen: I think Purdy AND the rest of us are in a time loop a la the Twilight Zone. According to my calculations, Pash will be covering it next week and then we cycle back to Fitzpatrick.