DEBT STACKINGGETTING OUT OF DEBT

DEBT STACKING

WHAT IS DEBT STACKING AND HOW DOES IT WORK?

DEBT STACKING

DEBT STACKING IS A WAY TO SCHEDULE AND PAY OFF YOUR DEBT OBLIGATIONS WITH OUT PUTTING ANY MORE MONEY OUT OF YOUR POCKET THAN YOU ARE ALREADY SPENDING.

DEBT STACKING• HOME $200,000.00• NEW CAR 40,000.00• 2ND CAR 15,000.00• DISCOVER CARD 10,000.00• VISA 7,000.00• MASTER CARD 5,000.00• MASTER CARD 2,000.00• HOME DEPOT 2,000.00 TOTAL DEBT OWED $281,000.00

DEBT PAYMENT XTRA PMT TOTAL PMT

• HOME 200K $1104 0 $1104• NEW CAR 40K 605 0 605• 2ND CAR 15K 312 0 312• DISCOVER 10K 200 100 300• VISA 7K 140 60 200• M/C 5K 100 50 150• M/C 2K 40 60 100• HOME DEPOT 2K 40 60 100 TOTALS 281K $2541 $330 $2871

LETS GET STARTEDALWAYS PAY THE HOUSE AND CAR PAYMENT AS SCHEDULED.PAY THE LOWEST BALANCE FIRST. HOME DEPOT $2000.00

WHEN DOING SO MAKE THE MINIMUM PAYMENT PLUS ADD ALL OF THE EXTRA PAYMENTS ON THE OTHER CARDS.

MINIMUM PAYMENT $40.00EXTRA PAYMENT $330.00TOTAL PAYMENT $370.00

DIVIDE $2000.00 BY $370.00 AND IT IS PAID OFF IN 5.4 MONTHS

CONGRATULATIONS YOU REACHED YOUR FIRST GOAL

NEXT STEP PAY OFF THE 1ST MASTER CARD $2000.00DO THIS BY TAKING THE $370.00 LEFT FROM THE HOME DEPOT

AND ADD IT TO THE MINIMUM PAYMENT OF THE MASTER CARD OF $40.00 OR $410.00

MINIMUM PAYMENT $40.00EXTRA PAYMENT $370.00TOTAL PAYMENT $410.00

DIVIDE $2000.00 BY $410.00 AND IT IS PAID OFF IN 4.87 MONTHS

NEXT

PAY OFF THE 2ND MASTER CARD $5000.00TAKE THE $410.00 EXTRA PAYMENTS AND ADD THE $100.00

MINIMUM PAYMENT OF THE MASTER CARD EQUAL $510.00

MINUM PAYMENT $100.00EXTRA PAYMENT $410.00TOTAL PAYMENT $510.00

DIVIDE $5000.00 BY $510.00 AND IT IS PAID OFF IN 9.8 MONTHS.

NEXT

PAY OFF THE VISA CARD OF $7,000.00

TAKE THE $510.00 PLUS THE MINIMUM PAYMENT OF $140.00 EQUALS $650.00

MINIMUM PAYMENT $140.00EXTRA PAYMENT $510.00TOTAL PAYMENT $650.00

DIVIDE $7000.00 BY $650.00 AND IT IS PAID OFF IN 10.76 MONTHS

NEXTPAY OFF THE DISCOVER CARD OF $10,000.00TAKE THE $650.00 PLUS THE $200.00 MINUM PAYMENT EQUALS

$850.00

MINUM PAYMENT $200.00EXTRA PAYMENT $650.00TOTAL PAYMENT $850.00

DIVIDE $10,000.00 BY $850.00 AND IT IS PAID OFF IN 11.76 MONTHS

YOUR CREDIT CARDS ARE PAID OFF

YOU HAVE PAID OFF YOUR CREDIT CARDS IN JUST 42.59 MONTHS.

THE 42.59 MONTHS IS OF COURSE WITH OUT PAYING ANY INTREST AND WITHOUT ADDING ANY MORE CHARGES. WE ARE GOING TO SAY THAT IF WE ADD 1.41 MONTHS OF FULL PAYMENTS, WHICH WOULD TAKE US TO 44 MONTHS, THAT SHOULD TAKE CARE OF THE INTREST PAYMENTS. MAYBE A MONTH OR TWO LONGER, IN ANY CASE YOU ARE OUT OF CREDIT CARD DEBT IN LESS THAN 4 YEARS.

LETS KEEP GOING SHALL WE

YOU STILL HAVE 2 CARS AND A HOME IF YOU FOLLOW THE SAME PLAN AND ADD ALL OF THE

PAYMENTS OF THE CREDIT CARDS TO THE 2ND CAR PAYMENT THIS IS HOW IT WILL WORK.

CAR PAYMENT IS $312.00 PER MONTH AND WE HAVE MADE 44 PAYMENTS OF THE 48 PAYMENTS OWED.

CAR PAYMENT $312.00 (BALANCE OWED $1248) EXTRA PAYMNET $1050.00 TOTAL PAYMENT $1362.00

PAID IN THE 45TH MONTH

ONE CAR LEFT

THE BALANCE OF THE 1ST CAR IS $16,335.00

CAR PAYMENT $605.00EXTRA PAYMENT $1362.00TOTAL PAYMENT $1967.00

DIVIDE $16,335.00 BY $1967.00 AND THE CAR WILL BE PAID OFF IN 8.3 MONTHS.

NO CREDIT CARDS AND NO CAR PAYMENTS IN 53.3 MONTHS OR 4 YEARS AND 5.3 MONTHS.

WHAT ABOUT MY HOME?

FOLLOW THE SAME PRINCIPALS AND THIS IS WHAT HAPPENS

HOUSE PAYMENT $1104.00EXTRA PAYMENT $1967.00TOTAL PAYMENT $3071.00

LETS GUESS THE BALANCE OF THE HOUSE PAYMENT IS $195,000.

DIVIDE $195,000.00 BY $3071.00 AND THE HOME IS PAID OFF IN 63.49 MONTHS.

YOU ARE COMPLETELY OUT OF DEBT IN 117 MONTHS OR 9.73 YEARS.

THAT’S DEBIT STACKING.

What are some of the problems with debt stacking

1. You may incur more debt while doing your debt stacking.

2. You get more credit cards.3. You don’t make the extra payments.4. Interest rates may go up and it can take a

little longer to pay off.