Using Debt Stacking to Pay Down Bills

One of the best ways for someone to pay down bills is to use debt stacking. This will then lead to paying off your bills entirely.

I reviewed this in an earlier post, but I think it is good to continue further with this important tip.

Debt stacking will not give relief from someone barely able to make payments. In that situation someone should look at a bill consolidation loan.

Debt stacking is for someone making their payments plus paying extra each month on their bills. I have usually met with people who say they pay an extra $200 on their bills.

Most times the $200 would be spread out on several bills. Some people pay the extra $200 on the bill with largest balance since they really want to get rid of that $8,000 credit card.

However, if they reviewed all their bills and concentrated on the lower balance cards first it would actually free up money quicker.

Most people believe paying the minimum payment on a credit card with a $700 balance and a payment of $30 is the way to go. They decide to take all their extra money and pay it on the largest balance since it will have the highest interest charge.

However, in three for four months the $700 balance would be paid off and then they could pay $230 on the next balance.

What you want to do is continue to pay out the same amount each month, but only pay the minimum payment on the rest of your bills.

Most important tip is not use the credit cards if you are debt stacking. By continuing to use your bills will never get paid off.

LESSON: Concentrate on lower balance credit cards first before paying off larger balances.