Which Debt Should You Pay Off First?

The best way to reduce your debt is to pay off whichever balance you have that carries the highest APR (Annual Percentage rate). Make a list of all your debts and make a note of the interest rates associated with each one. Put your debts in order from highest interest rate to the lowest. 
 
Once you have identified the debt with the highest APR concentrate on getting it paid down. Continue to make the minimum payment on your other debts while you pay as much as you can toward this debt. Don't just make the minimum payment, but pay as much as you are able so you can get the balance down.  
 
It is best if you make a plan and then stick to it. When you sit down to plan out how much you are going to pay on the bill every month make certain that you come up with a realistic payment amount so that you will be able to stick to it. Don't get discouraged. Work steadfastly at getting that debt paid off and then move on to next one in your list.

An effective tool that will help you to manage your money better is to simply make a list of what you spend your money on throughout the month. Most people are able to save an average of 20% by doing this. Once you see where your money is going you are better able to curb your spending. 
 
Some people may use an alternate plan. If you have some small debts that are more manageable you may consider paying them off first to free up money that can be used to apply to your high APR debts. This also serves to provide you with a feeling of satisfaction at seeing your list of total debts decrease.