When you have a lot of credit cards, figuring out how to pay them all off can be pretty daunting. Do you pay a little on all of them at once? Or should you concentrate on one card at a time? And if so, which one goes first? Follow these steps and your credit cards will be Dead on Last Payment—or DOLP™—for short.

The basic idea here is to reduce the amount of debt you're carrying on the credit cards you have as fast as possible. Why is this important?

  • The fewer credit cards you use, the better!
  • The more credit cards you have the greater the chance you have of being hit with late fees (up to $39 a month), over the limit fees (up to $35 a month) and annual fees on your cards that can range from $25 a month to $150 or more.
  • Getting the amount of cards you have paid off is a huge emotional boost. You'll see yourself make progress quickly!

Here's what you do:
  1. Make a list of the current outstanding balances on each of your credit card accounts.
  2. Divide each balance by the minimum payment that particular card company wants from you. The result 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.
  3. Once you have figured out the DOLP™ number for each account, rank them in reverse order, putting the account with the lowest number first, the one with the second lowest number second, and so on.
  4. You now know the most efficient order in which you should pay off your various credit card balances. Take half of your Latte Factor® money and apply it to the card with the lowest DOLP™ number. For each of your other cards, you make only the minimum payment.
  5. Once a card is paid off, don't close it! Leave the account open so you have credit you are not using, which will help improve your credit score.
  6. Finally, ask the credit card companies to waive your annual fees on the cards you have, whether you use them or not. You should continue doing this until you've DOLPed your way to being debt-free!

Print David's DOLP™ chart! PDF  

You will need the free Adobe Acrobat Reader to view the contract. Download it here.

Step 4: How to cut back your spending

Get all of Oprah's Debt Diet advice
Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.


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