How does debt-stacking work?
Debt-Stacking is a simple method of reducing debt in the shortest time possible with the money that is already going to payments. This method has saved the average consumer over 50,000 dollars in interest and cuts the time to payback debt in half.
Is debt stacking for everyone? Just about. As a matter of fact the more debts that you have the more you save. But, if you are behind on making payments this may not be right for you.
How does debt stacking save you money and time?
The principle is simple; when one debt is paid off you take the money that was going to that debt’s payment and apply it to the next debt.
Let’s say that you have a credit card that you just paid off and the monthly payment was 50.00. The next debt that you wish to payoff is a car payment, which has a monthly payment of 300.00. You would take the 50.00 that was going to the credit card and add it to the car payment, so this month you would send a payment of 350.00. Now when the car is paid off you may want to payoff the mortgage so you would take the 350.00 that was going to the car payment and add it to the mortgage payment. Let say that the mortgage payment is 750.00 add the 350.00 to it. So you send in a payment of 1100.00 to the mortgage company. Remember you are paying no more then you started with.
Credit card 50.00
Car 300.00
Mortgage 750.00
Total 1100.00
To see what the possible saving could be using this method with real debts consider the following two scenarios, first paying off debts the normal way, second stacking the debts.
We will use the same information for both scenarios
Debt Name |
Balance |
Payment |
Interest Rate |
Remaining |
Mortgage |
138,972.00 |
931.42 |
7.00% |
352 |
Car |
10,832.46 |
350.00 |
8.50% |
36 |
Visa |
7,500.00 |
150.00 |
16.00% |
|
Car 2 |
14,597.97 |
363.27 |
7.25% |
47 |
Totals: |
171,902.43 |
1,794.69 |
Years until all debts are paid off: 29 years 4 months
And it will cost $207,472.00 in Interest! This is if you don’t borrow another dime and just pay the minimum payments.
Now what if you were to use the debt stacking technique instead?
NO PLAN |
DEBT STACKING |
TOTAL SAVING |
|
Total to Payoff Debts |
380,402.00 |
255,928.00 |
Save |
Interest Paid |
207,472.00 |
82,998.00 |
|
Principle Paid |
171,902.00 |
171,902.00 |
|
Required Time to Payoff Debt |
29 years |
11 years |
Save |
Potential Retirement Saving |
0.00 |
1,125,379.00* |
*Actual results may very from the results depicted above depending on your individual credit worthiness and financial planning strategy. Retirement saving calculated with 8% annual return on investing equivalent of current debt payments
This is not debt consolidation, debt settlement, loans or investing. Well in a sense you are investing in yourself and your future when you pay off your debts.
Also paying off debt creates a guarantee return on investment. Look at our example.
We saved 124,474.00 in interest. That is a 60% return on investment. NOT BAD! Is that a big enough incentive to start today?
What about the 1,125,379.00 for retirement? That would give you about 90,000.00 a year to live on for life without touching the principle.
The Rapid Debt Reducer PC software is all you need. Nothing else! Sure you can figure out on paper how to stack your debts, but the Rapid Debt Reducer Software does this for you. It has 7 payoff strategies, what if calculators, 10 other financial calculators, plus a budgeting module to help you plan your monthly expenses. Start Now
It is your future. Wouldn’t you like to be debt free? Just imagine what your life would be like with no debts. Owning your home and car outright!
ONLY YOU CAN Make it happen!
What will your life be like 5 years from now or even 10 years? Will you still be making payments to creditors?
Start today with a personalized plan to eliminate all your debt with the Rapid Debt Reducer PC software and start living debt free.
You will start saving money and time the very first month. This saving alone will more then pay for the investment in the Rapid Debt Reducer Software.
Good luck, and if you need any advise or help with the software just email.
No magic here, just the plain truth. Create a plan to eliminate your debt. To start today (Click Here)
Rapid Debt Reducer Debt Elimination Software.
Debt Elimination Software. The answer is The Rapid Debt ReducerTM, a computer program which gives you the tools you need to get completely out of debt in as little as 5 to 10 years - including paying off your mortgage! Comes with free budgeting software! As DEBT goes down NETWORTH goes up!
http://www.rapiddebtreducer.com
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