Stacking Debt For Financial Freedom

From student loans to bank loans and credit cards, everyone has to deal with the dreaded D-word. Debt is enough to weigh a person down and make them do things they wouldn’t otherwise. How many people do you know who work jobs they hate just to pay the bills? Or, how many friends are tighter than cramp just to get through the financial month? The obvious answer is to release the burden and get out of debt. It’s the hallelujah moment every person seeks once in their life. Although there are no Hail Marys, there are methods which can help release the pressure.

This is how to relieve debt using the stacking method.

Stop Creating More

To be honest, this doesn’t only relate to the stacking method. Any technique you choose to reduce your expenses should start with this tip. Otherwise, you will spend your days paying off the minimum amount and will never chip away at the main body. An excellent trick is to force yourself to think before you spend. When you do this, it makes you analyse the decision and whether you need to make a purchase. Lifehacker.com goes as far as saying you should freeze or bury your credit cards. Then, the hassle of digging them up or thawing them out will make you think twice. 

Start With The Highest Rate

Debts aren’t equal, and some have bigger interest rates than others. The key to the stacking method is to find the highest rate and rank it at the top of your list. The reason for this is that this is the one you are going to deal with first. Logic dictates this to be the best move as the biggest rates create more debt and make it harder to reduce. Stepchange.org points out that all you have to do is look through the agreements or check your online banking.

And Lower It

Just because you’re going to pay off the debt with the highest interest rate doesn’t mean it can’t get smaller. In fact, reducing the rate is vital if you want to get out of the red. Plus, the other, smaller debts won’t escalate out of control either. If you have a credit card, moneysupermarket.com says you can move it to a 0% account. What you must do is research the card companies with the best deals, and don’t forget the small print. Barring that, a debt consolidation service is an option according to consolidatingdebt.co. By merging arrears, the overall rate drops and turns into a bitesize, affordable payment.

Celebrate Success

Don’t let your success go unrewarded. One of the best ways to stick to a plan is with high morale. By rewarding the good times, it encourages you to stay strong. Plus, it’s a bright light in a rather dark moment. To do this, make sure you track your debt. Then, when you hit a milestone, you’ll know it’s time to pop the bubbly. Well, as long as it’s on offer.

That’s the stacking method and how to pull it off. Hopefully, this technique will come in handy.