How to Pay Up Debt Quickly Using the Stack Method (Step-by-Step Guide)


Whether it is consumer debt on credit cards, student loans , or mortgages, most people find themselves burdened with debt at some point in their lives. This can keep us working the jobs we hate just to pay off debts and keep our heads above water. By learning how to pay off debt quickly, you can reduce that burden and remove some stress from your life.

Stack method is one way to do this. Once you understand it, you too can learn how to pay off debts quickly.

What Is a Stack System?
Stack Method, commonly referred to as “Debt Collection,” requires you to list all your credit sources, starting with the highest interest rates. After that, you make a small payment for each source of credit, but when more money arrives, you throw it in debt at the top of the list. In this way, you get rid of debt at a high interest rate first, putting extra costs at a manageable rate in the short term.

To get started with the Stack Method, go through these steps and conquer those mountains of debt today.

  1. Stop creating new debt
    Many people do not receive training in financial management and how to live within their means. If you are in debt, you are probably one of these people, and it is time to bite the real bullet.

It will be difficult to get out of debt unless you restore your current financial habits.

You have to stand up to all the sellers who are trying to take your hard-earned money or make a simple donation. You do not need a lot of fun. What you need is financial peace of mind.

So cut or credit your credit cards. I say this literally. Put them in a bowl of water and put them in your fridge. Then, when there is a chance to use it, you have time to melt (you and the credit cards) and really decide if you need that purchase.

  1. Set Your Debt On Interest
    Make a list of all your debts by interest rates and interest rates. The highest interest rate should be higher because this is what you will pay first.

Paying your high interest rate is the key to Stack Method.

Interest is a powerful weapon, and at present the bank or other financial institutions are using it to fight you. Interest rates greatly increase the amount you need to pay, and we usually do not know exactly how much that is.


For example, if you have a $ 10,000 credit card debt at 20% interest where you pay a minimum of $ 200 per month, you will end up taking 9 years and 8 months to pay the actual amount of $ 21,680 including $ 11,680 with interest !

  1. Reduce Your Interest Rates
    You can usually reduce your credit card interest rates by transferring the balance. This means moving your credit card to another bank, where they will lower interest rates to get your business.

Shop around and try to get the lowest interest rate in the long run (preferably paid off in full). Just make sure you read the terms and conditions carefully so that you do not get stuck in the new bank in other ways.

Once you have done this, you can re-order your credit list again if interest rates have changed.

  1. Create a Strategic Implementation Plan
    This is where we develop your financial management in Step 1. Take a piece of paper and write down your income after tax and all expenses you have. This will include lower payments on all your debts.

Look at your expenses, and put them in order of importance. Take a look at the items at the bottom of your list and decide whether you have them or not financially. The goal is to create a spending plan where your expenses are lower than your income.

You also decide how much you want to spend on each area of ​​your life. You can share rental prices, groceries, outdoor meals, clothing, and other activities. However, be aware that once you have spent your allocated funds, there is no entry into other areas.

It is also helpful to have an “Entertainment Account” that you can use for personal preferences, as well as an “Emergency Account” in case your car crashes or other adverse events.

You also want to include the additional amount you will use to pay off the debt in your application.

Can you afford to pay $ 20 a week? $ 50? $ 100? $ 200 or more? It is important that you find the right number to commit to each week without fail, and this is your Stack Repayment.

  1. Create a payment plan
    The first part of the Stack Method is to cover a small payment on all your debts. Whenever you miss a payment, you get paid, and this adds up quickly. This includes paying off debt with a high interest rate.

Then in the case with the highest interest rate (your Paid Debt), you will add Stack Reayment from your spending plan. You are using this Stack Reayment and a small payment until that payment is paid in full.

As your legal fees decrease, you add that extra amount to your stack payment. Therefore, as your minimum payment decreases, your stack payment increases equally. This will include how quickly you pay off the Payable Debt by adding even more to the payments you make.

  1. Reward Your Progress
    You want to track your Target credit to see your progress along the way. And you can decide on the big steps you will celebrate and reward yourself with.

Rewards do not have to cost money, but if you do, then you come from your pre-allocated budget.

This is an important step because it will keep your interest alive as you feel your energy diminish.

Just as you have trained yourself to brush your teeth and brush your teeth, you can train yourself to manage your money. Feel good about the fact that you are now joining the 10-20% of people who are actually looking for money.

  1. Combine Your Results
    Once you have paid your intended debt, have a big party and congratulate yourself. After that, you move Stack Repayment (which includes the latest small payment now) to the next debt with a higher interest rate.

This becomes a new Payable Debt, and you use your Stack Payout amount and a small new Debt Payment.

That’s why the Stack method is so powerful. As you reduce debt, you are actually increasing your stack payment amount. This means that the second debt will be paid off very quickly, the third will be much faster than that, and so on and so forth until you have no debt at all.

  1. Be kind to yourself
    During this process, your decision will be tested several times. You will probably have an emergency such as a broken car or the need to visit a sick relative. The key is not to become too preoccupied with the mundane things of life.

Life will test your commitment to your new responsible financial position, and it’s up to you how you respond. When things go wrong (and I guarantee they will), you need to get it out and get back on track.

Be compassionate when you accidentally exceed your budget and decide to do better next week.

The Stack method is a powerful tool, but it is up to you to use it properly. If you really want results, bookmark this article right away and start working in steps.

It is only with the decision you are making right now that you will enjoy a debt-free future and live a financially responsible life.



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