A little more than a week ago, I wrote about creating your (dreaded) budget. By now you have probably come up with a figure that is, well, less than pleasant.

If people know that you’ve decided to get serious about reducing your debt, you’ve probably been given all sorts of advice. Some of the advice is easy to follow. Other advice feels sketchy at best. For your Monday, I thought it would be a good idea to take a look at a couple of the major debt reduction myths and why you shouldn’t follow them.

Debt Myth #1: Employ a Debt Consolidation Company

Many people advocate going through a debt consolidation company and, if you feel like your debt has spiraled completely out of control, you might benefit from one of these services. It is easier to pay one bill each month and some debt consolidation companies are quite good at getting your creditors to reduce the amount you owe.

The problem is this: even if the consolidation company can talk your creditors down to a reasonable number, this number is often offset by the amount of money you will pay in company processing fees. What’s more, the consolidation companies advocate closing all of your credit accounts. While having many credit accounts isn’t a good idea, you will need at least one active credit card to use for things like hotels, car rentals, or emergency funding. Another problem with debt consolidation companies is that it could end up putting a black mark on your credit record. You want to avoid being labeled a credit risk.

Debt Myth #2: Pay off the card with the highest interest rate or pay off your largest debts first.

There is a simple logic behind this myth. The account with the highest interest rate is the account that is growing the quickest. If you pay it off, you could save yourself a bundle in interest charges. The same logic applies to paying off your largest debts first. If you pay off your largest debts first, you will have more money to devote to your smaller bills and, technically, could end up paying them off faster.

The truth is this: while you are struggling to pay off your larger debts or the card with the highest interest rate, your other (smaller) bills are also being charged interest and finance fees. Your largest bill is also usually the hardest one to pay off.

Instead of getting frustrated while you work to pay off your larger debts, pay off the smallest bills first! An account that has been paid in full looks good on your credit report and could help raise your credit score. Paying off the smaller accounts then gives you that money to put toward your larger accounts—cutting down on those accounts’ finance fees and interest charges. More importantly, you will feel a sense of accomplishment each time you pay a bill off completely! Those proud feelings will help keep you focused on paying down your debt!

Good luck!