Debt Stacking and Budgeting

Budgeting:

I know, no one wants to hear the word budgeting. Creating a budget is not that hard. I have provided here a simple budget form to help. One question that I get during seminars is how does debt stacking affect a budget, or should I use debt stacking to get a handle on my debt so that I can balance my budget? Both are good questions. Debt stacking is only a tool to put a plan in place to eliminate all debts. It puts an end to the debt payment cycle.

In a budget, debt payments alone can be one of the largest percentages often 25 – 35% of ones gross income. The money that is going to interest, is robbing you and your family of enjoying life, and possible an awesome retirement. I suggest creating a debt payoff plan today using the debt stacking method to eliminate all debts in the shortest possible time spending no more then you are right now. In order to stick to the debt payoff plan you will need to create a budget. It is important to know where your money is going each month, week, day etc. A budget is not a straight jacket! It is a straight jacket remover, giving you freedom to make wiser financial choices.

Debt Stacking to save money and stay on budget:

Okay, to use debt stacking you have to create a plan. Get all of your debts, credit cards, personal loans, school loans, mortgage, car loans, get them all. Use the debt work sheet to list all your debts. Be sure you are sitting down. See how much of your hard earned money is going to interest each month? Worst yet divide all those payments by how much you get paid each hour, that is how many hours you need to work just to service your debts, Ouch! By creating a plan using the debt stacking method and a budget so that you can pay all of these off in the quickest time possible you will see light at the end of the tunnel.

Should you consolidate your debt to save more money instead of debt stacking?

A budget is a simple tool to know where your money is going. I know you have heard the cliché “Fail to Plan, Plan to Fail”, it is true. It will only take about a half hour to see where your money is going and evaluate if you are spending it the way you thought. Do your self a favour and download the Rapid Debt Reducer PC software, its free. Complete the budget section and create a debt payoff plan using the debt stacking method.

Save Money and time with Debt Stacking.

It is your future why give it away to the creditors?

Create a Financial Plan Today for a Better tomorrow. It only takes a few minutes.