Recently while browsing through my issue of Kiplinger (which is an annual Christmas gift from my father); I came across a new online service: Debt Logistics. This basically a program for paying off your credit card debt by the use of a method called Debt Optimization. This is the process of moving debt around within your portfolio to optimize the interest paid position (to minimize the amount of interest paid by the user) and the time to pay position.

A good example of this is to look at a credit card with a high balance and a high interest rate. If that balance could be moved to a card with a 0% rate then the debt could be paid much faster and with no interest charges during the 0% term. With lower APR's being paid first, it is optimal to pay the higher APR balances first before transferring money into the lower APR account. This keeps the borrower from accruing high balances while the money is being paid to the lower APR's. NO money is paid to the higher APR balances until the lower APR's are paid in full.

The optimal position to be in is often very difficult to see due to the fact that it may take several steps (moving debt and money around) from one account to another, followed by moving that money around again. This tool does this for you for a set-up fee and first 90 days for around $30 and recurring monthly subscription for about $10. Why go to all this length to get you debt paid off and not educate yourself on your spending patterns or problem. Our spreadsheet is FREE and can you can see you debt being paid off. By taking our budgeting class, you will be able to correct your debt problem rather than applying a Band-Aid.

Labels: Debt Consolidation