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Tackling Debt: How to Eat an Elephant

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NY Money Minute

NY Money Minute


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By taking into account the interest rate and amount of debt, debt stacking identifies an ideal order for you to pay off your debts. You begin by making consistent payments on all of your debts.  The debt that debt stacking suggests that you pay off first is called your target account. 

There are programs you can enroll in that will automatically select your target account for you using a variety of criteria to help you get out of debt faster.  When you pay off the target account, you roll that payment into the payment that you were making on the next target account. This helps help you reduce the effect of compound interest working against you. 

Debt stacking allows you to make the same total monthly payment each month toward all of your debt.You continue this process until you have paid off all of your debts. When you finish paying off your debts, you can apply the amount you were paying towards your debt toward creating wealth and financial independence!

Get your guide to financial health: How Money Works. This essential guide will show you the life insurance traps, the debt traps, the mortgage traps, the tax traps so that you can build a secure financial house. 

Go to bitly.com/yourmoneyny and sign up for your copy of How Money Works, that's bitly.com/yourmoneyny  
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