I never really understand how an extra $5 a month on a credit card would do much damage the huge balance until I came across this debt investment calculator.

By entering my principle balance owed, annual interest rate, amount I pay currently per month and the extra amount I want to pay on the bill; I will then get the amount of interest I saved and the length of time.

As an example I put in an 800 bill that had a 15% interest, paying 30 min. a month and then added an extra $5 a month - this was the result

"If you add $5 to your monthly payment, you will pay off this debt in 28 payments instead of 33, and you will save $31 in interest charges. This savings translates into a guaranteed, tax-free, average annual return of 9%. And that's not even considering the emotional returns you'll get when you pay off this debt 5-months (0 years, 5 months) ahead of schedule!"

It is wonderful to see that a simple $5 extra a month on a bill, instead of eating out at McDonald's, does impact that bill by shaving off 5 months of time plus saving a bit more on interest.

I like this calculator because it is simple but there are other debt reduction calculators that are out there - just google them