WEBVTT Kind: captions Language: en 00:00:01.200 --> 00:00:02.160 Debt Stacking 00:00:03.620 --> 00:00:08.320 By taking into account the interest rate and amount of debt, 00:00:08.330 --> 00:00:10.990 Debt Stacking identifies a way for you to pay off your debts. 00:00:10.990 --> 00:00:14.740 You begin by making consistent payments on all of your debts. 00:00:14.740 --> 00:00:19.529 The debt that debt stacking suggests that you pay off first is called your target account. 00:00:19.540 --> 00:00:25.200 When you pay off the target account, you roll the amount you were paying toward your next target account. 00:00:25.340 --> 00:00:31.060 As each debt is paid off, you apply the amount you were paying to that debt to the payment you were making on the next target account. 00:00:31.780 --> 00:00:35.640 Debt stacking allows you to make the same total monthly payment each month toward all 00:00:35.650 --> 00:00:40.360 of your debts and works best when you do not accrue any new debts. 00:00:40.360 --> 00:00:44.410 You continue this process until you have paid off all of your debts. 00:00:44.410 --> 00:00:46.854 When you finish paying off your debts, you can apply the amount you were paying towards 00:00:46.854 --> 00:00:49.010 your debt toward creating wealth and financial independence!