Monthly Archives: June 2018

Debt Stacking How to Manage Money

Do you have a plan in trying to eliminate your debt? Are you tired of making the minimum payments on each outstanding balance and never being able to make any progress?I want to go through what debt stack is and how to manage money and get rid your debt as fast and reasonably as possible. Something that is more interesting is you can follow the debt stacking formula to help create the retirement you’ve always hoped for!

What is Debt Stacking?

I have discussed this in one of my previous post but I think this is worth another look. Debt stacking is an easy principle of eliminating all debts in a triangle type formula. It is a proven theory and it can be easy plus you can get rid of your debt two or three times more quickly then you may have thought possible.

HERE’S WHAT TO DO:

STEP 1: Create a list of all of your current debt. Put each amount in order from the lowest amount to the largest.

STEP 2: Set up an emergency fund in a savings account. The lowest amount you should have is $1,000. You just never know if or when you may need it.

STEP 3: Always make the minimum payments every single month that is required on all of your debt until the first one is paid off.

NOTE: If you usually pay extra on one or more of your balances each month, apply that extra amount to first item (of the lowest balance) on your list. (for example if you pay $200 extra each month on item number 3 switch that amount, regardless of interest to the lowest balance)

STEP 4: Once the lowest debt has been paid, use that money against the next lowest balance (the second one) on your list. This will help speed up the amount of time it will take to pay off the second balance.

STEP 5: Repeat that same process to the next debt or until all have been eliminated. Remember you are not spending any more money and it will accelerate the process.
REMEMBER: For this to work effectively you must not create any new debt.

Let’s look at a typical example:
TYPE: AMOUNT: REQUIRED MONTHLY INTEREST RATE:
PAYMENT:

Credit Card $7,500 $150 16%

Car Loan $10,800 $350 8.5%

Student Loan $14,600 $365 7.25%

Mortgage $139,000 $940 7%

TOTALS $171,900 $1,805 —–

If you only made the minimum required payments:

It would take 32 years to be completely out of debt.

In those 32 years you would have paid $205,485 in INTEREST for a total of $377,385.

If you apply the Debt Stacking Formula:

It would take just 12 years to pay off that same debt.

In those 12 years you would have paid just $86,343 in interest for a total of $205,485.

It may seem too good to be true but this is an easy process that works. You are not making any changes to your monthly payments, just a different approach. Every situation is different but debt stacking can work for anyone.
How Debt Stacking would help with retirement:

Once all of your debt has been eliminated, take the same total minimum required monthly payment of $1,805 and invest it. Do that each month for the next 20 years. You would have been paying that amount for another 20 years anyway. If its invested at 8% you will have $1,179,533 in 20 years. Nothing in your lifestyle has changed.

Basically debt stacking will dramatically reduce the amount of time it will take to pay off your debt and it will also reduce the total amount of interest you will pay AND it will help create the nest egg you have always wanted. That sounds pretty great doesn’t it?

When it comes to paying off debt you don’t always see results. It’s hard to stay focused and maintain hope when those large balances don’t seem to disappear until the last few years. The key is to pay as little interest as possible so you will have more of your money in your bank account down the road. I hope this post helped you understand debt stack and taught you a little more about how to manage money.

Until next time,

How to Get Finance Homework Help

In its core, finance explores the ways in which business entities, individuals and organisations utilises the resources over time. The study of money and the management of assets has been the focus of finance. Maximisation of shareholders wealth has the main focus of the financial manager. Decisions relating to investments, dividends and financing has been taken by the financial manager. Finance home work help provided by the online sites worth its salt. Though there are plenty of experts who provide online help for various topics in finance. It is quiet important to find the right guide who can lead the students properly.

The basic areas of finance is the time value of Money, bond valuation, stock valuation, dividend policy, capital structure, risk & return, cost of capital and capital budgeting.

The time value of the money is also processed in Finance. At the time of investment “The bird in the hand principle” is of much importance. One dollar in hand today is certain but one dollar which can be received tomorrow is less certain. This is the risk strategies in finance. Even with the consumption preferences, the preference level for the immediate consumption is stronger than the delayed consumption. As the saying goes “The promise of a bigger pizza next week counts less for a starving man.”

Though homework help with finance is quiet complex, there are many experts who work round the clock to serve the needs of the students.

The whole responsibility of managing the general accounting function, the internal control procedures, and the pay-out systems is in the hand of the finance and accounting manager. So, the students of finance and management need to put intensive care in learning the basics of finance.

This is Kate Vinslet having more interest to discuss about Homework help always.

How to Manage Money Eliminate Debt Step by Step

Is there a way to manage money and eliminate debt step by step? Perhaps if there were a absolute way we would all be doing it every day, week and month of the year. However, I have found several steps that can help and if you attempt to follow each as closely as you can you should be one step closer to eliminating your personal debt. You can begin tomorrow and it can change your life.

Step Number 1: Assess your current financial situation.

Are you currently in the red or black? Do you use your credit card to manage your money and daily expenses? This may be a definite indication that you are in a state of financial trouble. There is a free tool at my blog that may help quantify your current situation.

The Second Step: Analyze your spending habits.

Look at your weekly and monthly spending habits. Do you find that many of your purchases don’t need to be made? When discussing spending, there really is no ‘grey’ area. Some things we all need to purchase and there are items that we don’t. You might have to re-learn how to manage money if you discover that half of the cash you spend is on eating out, entertainment, fancy clothes, alcohol etc. Try this next step.

Step Number 3: Budget.

I’m pretty sure I’ve mentioned this once or twice on my blog but creating a budget is without a doubt the most key step to make. A simple way to begin to budget is to sift through your credit card bill and create list that lists what you MUST HAVE and what you DON’T NEED. This will only take a a bit of time but it will show you how to manage money in a very easy way. If you want, try to go through a few months of bills. The 1st thing you will probably discover that you could chop those bills by 50%! From here on in, when it comes to buying things in the future you will know exactly what purchases get the ‘green’ light for necessary spending and what gets ‘red’ flagged. Just like that you have created a basic budget.

Step Number 4: Eliminate those ‘Red Flagged’ purchases.

Step 4 will take the most determination, dedication and will power from you. The key of how to manage money is to understand where the money is going and why. You don’t need the finest fashions, or that expensive bottle of wine, football tickets or the newest pair of shoes if you are already having difficulty with your finances. The only things you really need are a roof over your head and 3 square meals. Make an effort to live a very modest lifestyle for a month and you will surely be shocked with how much cash you will save.

The Fifth Step: Find a low or no cost credit card.

You may have to search around to different companies but this is a very important step to take. The key to this is if you carry a balance or if you always pay it off each month. If you do have a an amount that carries over you need to find a credit card with a low interest rate. It is almost impossible to pay a balance if they charge you 18% interest or higher. That amount adds up fast. If you are lucky enough that you can make the payments, find a credit card with low or no fees. In my opinion you should eliminate your credit card altogether and only use it for emergencies.

Step Number 6: Consolidate your debts.

Plan this step carefully. The positive side is that debt consolidation offers the opportunity to lower your monthly payments, save on interest and may even help you get out of debt faster. But there are downsides that should be taken into consideration like not finding out the root of why you are in debt and stopping those tendencies that got you into debt to begin with. You may end up paying more in the long run with debt consolidation if you don’t change your habits.

There is another free calculator on my blog that can show you how to manage money through debt consolidation.

The Seventh Step: Seek financial advice.

This is straight to the point. You can’ know all of the things you need to about debt and the ways to eliminate it. These steps will help but it is still wise to seek face to face advice from a professional.

Step Number 8: Fix your credit.

Having bad credit is, well, bad. There are plenty of huge purchases you are going to make in the future and you must have a quality credit score to do so. Be sure to check your credit at your financial institution or even find out online with a company like Equifax. The sooner your credit is fixed the better.

Is there a way to manage money and eliminate debt step by step? I truly believe that if you take these 8 steps you will have the right tools to eliminate your debt. Good luck and I look forward to any success stories that you may have!