I use a similar method, though did not realize it was called the snowball approach.  I was really frustrated and embarrassed by the amount of credit card debt I had accrued.  I wouldn't tell my boyfriend how much it was because I was so ashamed... as a 28 year old I had over $15,000 in credit card debt and not that much to show for it.  I stopped using credit cards and closed accounts when I finished paying them off.  I know there is mixed advice about what this does to your credit but for me it was the best method to be sure I wouldn't accrue more debt.

I buckled down and starting paying as much as I could every month, rather than the minimum payments.  A year later and a half later I was at about $12,000 in debt when I finally shared the information with my boyfriend.  He was very supportive because he knew I had stopped using credit cards - I was working on paying off debt without accruing new debt.  He helped me to create a realistic budget for rapid debt paydown.  I have increased my debt payments with every pay raise or expense reduction.  Now I pay $710 per month toward my credit cards, it is a payment I scheduled with my bank's online bill pay service to occur at the same time every month.  When I come into extra money (birthdays, Xmas, odd jobs) I immediately make an extra credit card payment, whether it is $25 or $250.  I have two roommates and drive an old car, which is why I am able to put so much toward paying down debt. I never would have thought that at my income level I could be paying my debt off so quickly.  It is so liberating.  By the end of August 2008 I will have no credit card debt!!

I stopped spending (absolute essentials only) and stopped using my credit cards.  You cannot pay-off debt if you are still accumulating debt at the same time.  I listed my debts from lowest balance to highest balance.  I made very large monthly payments to one at top of the list, while I made minimum payments to rest.  Getting some paid-off asap is good for my feeling of accomplishment.  It also eliminates the number of payments I have to make each month.  This frees up more money to make larger payments on the next debt on the list. Extra monies went towards one of my debts, not to vacations and clothes. I had to learn why I was spending so much and what emotional issues I was catering to.  My focus became "be frugal" in every way.  Appreciate what you have and more will be given in its own time.  Our economy is based on consumer spending, unfortunately.  We are constantly being bombarded to buy this and that.  We have to be constantly alert to this and resist spending monies on what we really do not need.  Get some cash in the bank savings acct and watch it grow.  It will change your consciousness because you know you are not 'broke'.  Don't spend this; it it is for the ultimate emergency, like getting laid off.  Just grow it.

Feedthepig.org is a good resource for calculating monthly payments to pay off your credit cards within a specific time frame.  Even though I noticed my interest rates are going down (thanks Fed chairman) I have not reduced my monthly payments.  I've cut my total debt in half in less than a year.

You're fooling yourself if you think that paying the credit card companies back this way really helps anything.

john a, please explain how it is NOT helping?  I've read many many cases that it does help pay down debt faster. Most debt counselors recommend it.  I know for a fact that it works, because that's how I did it.  So, john a, unless you have hard facts, you have nothing to add to this thread.

"You're fooling yourself if you think that paying the credit card companies back this way really helps anything."

What do you mean by that? Everybody who's commented has had success paying down their bills and are on their way to a debt free life