Debt Stacking - How To Manage Money

Are you currently trying to reduce your debt? Are you tired of making the minimum payments on each outstanding balance and don't seem to make any progress?let's talk about what debt stack is and how to manage money and get rid your debt as quickly and realistically as possible. What's even more exciting is that you can even use the debt stacking plan to assist in making the retirement you have always hoped for!

What is Debt Stacking?

I have talked about this in one of my previous post but perhaps this is worth one more look. Debt stacking is an easy principle of paying off all debts in a pyramid type formula. It works and it can be easy plus you can eliminate your debt two or three times more quickly then you would have imagined.

STEP BY STEP PROCESS:

STEP 1: Make a list of all of your current debt. Put each amount in order from the least amount to the largest.

STEP 2: Set up an emergency fund in a savings account. The lowest amount you should have is $1,000. You may need it any at time, so it's wise to have.

STEP 3: Be sure to pay the minimum amount every single month that is required on all of your debt until the first one is paid off.

NOTE: If you usually pay extra on some of your debt each month, apply that extra amount to first item (of the lowest balance) on your list. (for example if you pay $200 extra each month on item number 3 switch that amount, regardless of interest to the lowest balance)

STEP 4: When you have paid off the lowest outstanding balance, use that money against the next lowest balance (the second one) on your list. This will help speed up the amount of time it will take to pay off the second balance.

STEP 5: Repeat that same process to the next debt or until all have been eliminated. Remember you are not spending any more money and it will accelerate the process.