DOLP Your Debt Out of Existence

DOLP Your Debt! The following information is from "The Automatic Millionaire" by David Bach

The easiest and most efficient way of getting out of credit card debt is to consolidate all your ballances in one account and then use half the money you pay yourself first with to pay it down. If you owe so much money no company will give you a sufficient credit limit you can't consolidate your debt you can DOLP your way out of debt.The basic idea is to rid yourself of credit card debt once and for all by paying off all your balances and then closing all your credit card accounts. In other words, your credit cards are all going to be Dead On Last Payment-or DOLP, for short.

Here's what you do.

• Make a list of the current outstanding balances on each of your credit card accounts.
• Divide each balance by the minimum payment that particular card company wants from you. The results is that account's DOLP number. For example, say your outstanding Visa balance is $500 and the minimum payment due is $50. Dividing the total debt($500) by the minimum payment($50) gives you a DOLP number of 10.
• Once you've figured out the DOLP number for each account, rank them in reverse order, putting the account with the lowest DOLP number first, the one with the second lowest number second, and so on.

You now know the most efficient order in which you should pay off your various credit card balances. Apply more money with the lowest DOLP number. For each of your other cards, you make only the minimum payment. This is some great stuff to help you become finacially free and enjoy the finer things in life!