[Gedominew]

The best method to paying off debt is in consolidate to a single source (multi-sourced debt is one of the biggest culprits to bankruptcy) and to pay in bulk payments, as frequently as possible. Instead of 100 to Capital One, 125 to HSBC, 75 to Best Buy and 100 to Tim's Rhinoplasty; consolidate it to 400 to a single source. You will probably get a lower cumulative interest rate as well.

Also, match up the frequency of your payments with the frequency of your income. If you get paid twice a month, split your monthly payments in half with each paycheck. That way you only allow interest to compound for half of the time, while still paying the same amount. This method can shave a surprising amount of interest off of the total.

Using QD's scenario, technically Option 2 is worse financially, but there are things in life that can not be bought on credit (drugs, whores, down payments). Throughout my early career, I have been paying off college credit card debt whilst still saving. Now that I am nearly done with the debt