Use This Free Debt Reduction Strategy to Pay off All Your Debt Quickly and Without Loans

Debt stacking can help you get out of debt more quickly than trying to pay more money to each company you owe. Many people try to pay off their debt by paying a little more than the minimum payment each month to a few creditors. This can help alleviate debt, but it\’s slower than taking what you can use to pay off more debt and applying it to just one creditor. Here\’s how it works.

Lets say you have 4 credit cards each owing 3,000.00 The minimum payment is $100 but you pay $150 to each one hoping you will pay them off faster. Rather than paying an extra $50 dollars to four companies, take the $200 ($50 each card) and use it to pay off your highest interest card first. Doing it this way means you will now be paying $200 and the minimum $100 you normally paid; that\’s $300 each month to one card. By doing this, less interest will be accrued that period on that card saving you money. Now for the best part…

Once you pay off that card, the card with the highest interest rate and saved all the interest on that card, now take the $300 you were paying on that card, plus the $100 minimum you are paying on the second card and apply the full $400 dollars toward the card with the next highest interest rate.

Once that card is paid off move to the next card, paying $500 dollars and so on. Once you have finished paying off all four cards, using this example, you will now have $600 you were paying on credit cards, ($150 X 4 cards) use this $600 and apply it to your car payment which as an example lets say is $400 and pay the full $1000 toward your car payment. When that\’s paid off, take the full $1,400 and pay it towards your house payment. Paying an extra $1,400 toward your house could save you hundreds of thousands of dollars.

Written by: Robert Ratliff

For more information, visit: http://www.myfinancialuniversity.com/debt_reduction.htm