Wednesday, March 26, 2008

DEBT STACKING

Lyman Rose

Debt Stacking has been around for years and virtually anyone can do it.  All you have to do is to put your debts in payoff order.  Look at your debts and calculate how long, with your current payments, it will take you to pay off each one completely.  Then commit yourself to continue to pay the same amount toward your debts that you pay now.  Then, when you pay off that first debt, roll the amount that you were paying toward that debt into the next debt.  For example, if you have a credit card that will be paid off in 6 months and you are paying $55.00 a month toward it and you have a home equity loan that will be paid off in 3 years that has a $137.00 monthly payment; when you pay off the credit card you increase the home equity payment to $192.00.  This will pay of the home equity loan about 10 months early.

Do this with all of your debts and you will find yourself out of debt much sooner than you thought.  In the back of my book "Winning the War Against Debt" there is a CD that has the DEBT STACKER program on it.  This program will calculate the payoff and rollover for each of your debts.  You can see for yourself how much sooner you will be debt free.  Of course the real bonus is that when the debts are paid off, you will have the total that you were paying to support them free to use for investing etc.

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