1. DEBT STACKING GETTING OUT OF DEBT

2. DEBT STACKING WHAT IS DEBT STACKING AND HOW DOES IT WORK?

3. 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.

4. DEBT STACKING HOME $200,000.00 NEW CAR 40,000.00 2 ND 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

5. DEBT PAYMENT XTRA PMT TOTAL PMT HOME 200K $1104 0 $1104 NEW CAR 40K 605 0 605 2 ND 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

6. LETS GET STARTED ALWAYS 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 $40.00 EXTRA PAYMENT $330.00 TOTAL PAYMENT $370.00 DIVIDE $2000.00 BY $370.00 AND IT IS PAID OFF IN 5.4 MONTHS CONGRATULATIONS YOU REACHED YOUR FIRST GOAL

7. NEXT STEP PAY OFF THE 1 ST MASTER CARD $2000.00 DO 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 $40.00 EXTRA PAYMENT $370.00 TOTAL PAYMENT $410.00 DIVIDE $2000.00 BY $410.00 AND IT IS PAID OFF IN 4.87 MONTHS

8. NEXT PAY OFF THE 2 ND MASTER CARD $5000.00 TAKE THE $410.00 EXTRA PAYMENTS AND ADD THE $100.00 MINIMUM PAYMENT OF THE MASTER CARD EQUAL $510.00 MINUM PAYMENT $100.00 EXTRA PAYMENT $410.00 TOTAL PAYMENT $510.00 DIVIDE $5000.00 BY $510.00 AND IT IS PAID OFF IN 9.8 MONTHS.

9. 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 $140.00 EXTRA PAYMENT $510.00 TOTAL PAYMENT $650.00 DIVIDE $7000.00 BY $650.00 AND IT IS PAID OFF IN 10.76 MONTHS

10. 0 NEXT PAY OFF THE DISCOVER CARD OF $10,000.00 TAKE THE $650.00 PLUS THE $200.00 MINUM PAYMENT EQUALS $850.00 MINUM PAYMENT $200.00 EXTRA PAYMENT $650.00 TOTAL PAYMENT $850.00 DIVIDE $10,000.00 BY $850.00 AND IT IS PAID OFF IN 11.76 MONTHS

11. 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

12. 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 2 ND 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 45 TH MONTH

13. ONE CAR LEFT THE BALANCE OF THE 1 ST CAR IS $16,335.00 CAR PAYMENT $605.00 EXTRA PAYMENT $1362.00 TOTAL 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.

14. WHAT ABOUT MY HOME? FOLLOW THE SAME PRINCIPALS AND THIS IS WHAT HAPPENS HOUSE PAYMENT $1104.00 EXTRA PAYMENT $1967.00 TOTAL 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.

15. YOU ARE COMPLETELY OUT OF DEBT IN 117 MONTHS OR 9.73 YEARS. THAT’S DEBIT STACKING.

16. 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.