This method will ensure that you pay least amount of interest and repay your debts as soon as possible.

The trick to paying least amount of interest possible is to pay extra money toward debt with highest interest rate. Obviously you want that debt paid off as soon as you can. Each month it costs you most.

The trick to paying off your debts in least amount of time is to set a fixed total amount to pay each month. The trap many people fall into is that they only pay minimum payments. These minimum payments are designed to keep you paying that high interest rate for as long as possible.

By paying a fixed total amount each month, as one debt is paid off, you will have more money to pay towards another debt. This is often called "snow-ball" effect.

But first things first.

First, determine you ability to pay. If your total payments are much more than you can afford, you are in trouble. You may need to contact a non-profit credit counseling agency. You can find them in your local phone book or online.

But be careful of companies that want an up front fee. Check with your local Better Business Bureau for recommendations.

Next you need to make a commitment to stop getting further into debt. Cut up your extra credit cards or put them where you cannot easily get them. If you are living a lifestyle that depends on credit, you will soon dig a hole you cannot easily climb out of.

Stop spending more than you make each month and don't count on future bonuses, inheritances, refunds or other non-dependable income to bail you out. If you make $2000 a month you can only spend $2000 a month. Look for ways to cut back and purchases you can postpone or do without.

Now, let's look at each step of your ultimate debt reduction plan more closely.

The operator stated, "Your credit card rate will then be a low 15.9%. How much would you like to transfer today to take advantage of this offer? Do you have any high interest loans you would like to pay off and reduce your payments?"

The previous day I had called them to get two bogus late payment charges taken off my statement. I also had to get my interest rate lowered back to my usual rate rather than "penalty rate" (22.9%) they charge to anyone who is late, misses a payment or goes over their credit limit.

Wondering if my rate got changed back to my usual rate, I asked operator what my current rate was. She said that it was at 12.9%, which was my usual rate for this card.

I do carry some debt on other cards (it helps with my credit rating to be making regular payments) but all other debt I have is at lower rates than this card. I mentioned that I had no other debt that was at a higher rate than what she was offering.

She then replied that I could just take money as a cash advance and do whatever I wanted with it.

So I asked her if I understood correctly what she was offering. "So you are offering to raise my interest rate if I get further into debt by getting a cash advance?"