I recently started the DOLP (Dead on Last Payment) and the way it works is you enter what you owe on each card, what the minimum payment due is each month and then you divide the amount owed by the payment due and that is the DOLP. Then you sort the DOLP by the lowest number first and that is the credit card you apply extra payments to each month while paying the minimum due to the rest of the forms. The idea is that you’ll pay off the lower DOLP cards quicker.
My problem is that, some of the credit cards I have, if I pay only the minimum payment, then the balance goes up the next month. So, it all doesn’t make sense to me. Can someone help me with this please?
DOLP is referenced on Oprah’s site as part of her Debt Diet: http://static.oprah.com/download/pdfs/money/money_bach_dolp.pdf
I have several friends that used John Cummuta’s program and found it very useful. I personally like Dani Johnson right now.
Has anyone read his Transforming Debt to Wealth book? I have read a lot of pros and cons on Internet about his program. Primarily, I am just trying to learn techniques for bringing down debt faster. Here’s what I’ve learned, for example, from Dave Ramsey, etc.:
- Debt Snowball (either starting with smallest balance, or starting with highest interest).
- Using compound interest to your benefit by paying either every two weeks or every week, which saves a lot of interest.
- I downloaded an Excel file from this group that lets you plug in balance interest rate, and number of payments to see how long it will take to pay something off.
Does anyone know if John Cummuta, or other gurus out there, have other techniques” that can help get debt down a little faster?