I just sent in the payment that will officially pay off my HDTV two years early (I had no interest until 2010 on it). Why pay off something I have no interest on for two more years? Because I am following the Debt Snowball method of reducing debt. It is completely right too: tackling the smallest debts first allows for some really quick/easy wins that add up extremely quickly. Plus it is simply awesome to delete a company from my bill pay list! So far we have been able to payoff/close three credit card accounts completely and pay off one of my wife’s college loans.
Next up is paying off my last credit card with a balance. It still has about $1300 on it due to a car repair bill I am still paying from nearly a year ago (before my wife and I had an emergency fund, plus before the debt snowball started). With the debt snowball, I think I can get it paid off in ~8 months assuming I have no major unexpected bills come up, get a little overtime here and there, and reducing expenses where possible. I think I am going to try calling Comcast and see if I can threaten to switch to satellite over their video quality problems…maybe they will lower their monthly rate for a few months.