Debt stacking, or making regular and consistent contributions to a group of debts, is an effective approach to eliminating your debt. The practice is most successful when you are frugal and avoid accruing additional debt.
To begin debt stacking, you first order your debts from the lowest balance to the highest, with the aim to pay off the lowest debt first. Decide how much money you will use to pay debts each month. Pay the minimum amount due on each debt, but use the remainder to pay down your lowest debt as much as you can. Once the lowest debt has been paid off, do not change the monthly amount you use to pay your debts. Instead, target the amount you were using to pay off the first debt toward your next lowest debt. When that second debt is paid off, then repeat the process until all your debts are paid off.
About the Author:
Andre Dobison has been a Primerica Representative for 27 years. He is committed to helping families become debt free and financially independent.