WHAT IS THE DEBT STACKING METHOD?
The Debt Stacking method is a debt repayment plan that will help you pay off your debt faster. You may find yourself weighed down by debt. Whether it’s credit card debt, student loans, car loans, personal loans, or your mortgage. Learning how to pay off debt, can remove the burden and stress that goes along with it. The Debt Stacking method helps you pay off your debt fast.
DEBT STACKING METHOD STEP 1
You need to stop creating new debt. It means living within your means. Put away your credit cards so that you are not buying things you do not actually need.
DEBT STACKING METHOD STEP 2
Ranking debt according to Interest rates Make a list of all your debt. You will list the amounts owing and the interest rates. The highest interest rate should be at the top as this will be the debt that you will pay off first. Paying off your highest interest debt is the key to this Debt Stacking method.
DEBT STACKING METHOD STEP 3
Lower your Interest Rates. You can often lower your credit card interest rates by doing balance transfer. This is moving your credit card debt to another bank that will lower your interest rate to get your business. You may need to shop around to get the lowest interest rate for the longest duration. Once you have done this you can re-order your ranking list again so that the highest interest rate debt is at the top.
DEBT STACKING METHOD STEP 4
Create a Strategic Spending Plan. Decide based on your income and expenses how much you are willing to spend paying off your debts. It is important to choose a realistic number that you can commit to each week. This will be your Debt Stacking repayment.
DEBT STACKING METHOD STEP 5
It is important to pay the minimum on all your debts every month. When you miss a payment or are late, you can incur fees and penalties that can add up quickly. They also charge interest on the fees and penalties.
First, you take the debt with the highest interest rate that you have chosen to pay back first, then, you would add the “extra” that you would put on any of your other monthly debts. Put it all on the targeted debt every month and any extra you can put together to pay it off every month.
Then once this debt is paid, you take the entire Debt Stacking amount and target it towards the next one.
You will save A LOT in interest dollars and fees, you will be out of debt much quicker and your credit score will go up.
SPEAK TO AN ASSOCIATE
If you find this overwhelming, our experts can help you stay on track and our system can analyze the best way to pay your debts off. An Experior Associate can get you on the right financial pathway to securing your income, paying down debt, and reaching all your retirement and financial goals.
For more Financial Educational pieces visit https://www.experiorfinancial.com/financial-education/