Currently we have a lot of debt. We are making this the year to pay a lot of this down. We don’t have much of a savings. Our current debt is this: a first mortgage = 170K, second mortgage that = 35K, first credit card = 17K, second credit card = 5K, and a truck that equals 25K. We want to pay this down because we struggle making the high monthly payments on each one of these.
Should we use the snowball effect? Would it also help at all to make an additional $10-$15 weekly payments to the debt on top of the monthly payments?
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I find that applying the debt snowball approach really helps to keep people on track and motivated to get out of debt. You will see that what you will do is pay minimums to all creditors but minimum plus all the extra money you can send to the highest priority creditor in your debt snowball reduction.
Just remember, the best way to get out of debt is to reduce the amount of debt BUT save at the same time. Open a regular old boring savings account and put at least $50 a month into the account. Unless you save money for emergencies you will only have to turn back to the cards when a surprise expense comes up and that will erode the progress you mad in reducing your debt.