Are you desperate to figure out how to get out of debt? Right now, I’m going to share with you a credit card debt management strategy that will help you pay off your car loans, credit cards and even your mortgage faster than you ever have thought possible.

When drowning in debt, it’s hard to think straight and keep your entire life in order. There is hope, however. While I worked in the financial planning area, I visited with hundreds of families in my local area and discovered something.

I found out that most people didn’t know how to get out of debt. They were paying just the minimum payments (or maybe a bit over) on each credit card they owned. This is the way to stay enslaved in debt forever and a bad credit card debt management strategy.

Debt Stacking Credit Card Debt Management Strategy

Rather than doing it this way, you should instead use the Debt Stacking method so that your ultimate pay off date will be accelerated. Here’s what you’re going to need to do in order to start using this strategy…

Go find your credit card and other debt statements. First, list the names of each mortgage or car loan company and each credit card. After each name, write down your balances, minimum payments required and interest rates.

At the end of each line, write down any amount you may be paying extra (over the minimum payment required) for each debt. For example, if you have a MasterCard credit card that wants $75 a month from you, but you’re paying $100 each time, write $25 at the end of that card’s line.

If you are paying more than the minimum on two or more of your debts, add up the total of how much money you’re paying extra (above and beyond the total of all your minimum payments added together).

Credit Card Debt Management: Your Acceleration Amount

You have now found your “acceleration amount” and this number is really important when it comes to how quickly you’re going to get out of debt. If your minimum payments add up to $450 but you actually pay out $800 each month, your acceleration amount is $350.

If you aren’t paying more than your required minimum payments right now, then you have to figure out a way to come up with some sort of an acceleration amount. Figure out a way to at least pay $25 more than your minimum payments. The debt stacking method will help you get out of debt much more quickly than you’re currently on track for even if $25 is all you can start with.

If you’re able to free up $50, $75, $100 or more, you’ll be working on how to get out of debt that much faster.

All right, now that you’ve come up with an acceleration amount, you’re going to use it to make the debt stacking technique work for you.

The Discipline Of Credit Card Debt Management/Debt Stacking

On your paper, list your debts from the smallest balance down to the largest balance. You’re going to start with the smallest debt first, which is most likely a credit card.

Instead of paying more than the minimum on several credit cards at once, you’re going to only pay extra on that first credit card. On all the credit cards, car loans and mortgage below that one, pay only the required minimums.

The next part of debt stacking is going to require discipline on your part. After the first credit card is paid off, take the full amount you used to pay on it (minimum plus the extra $50, $100, etc) and add that to the next debt on your list.

You can’t take this money and go spend it somewhere else. You’ll be in debt bondage forever. Stay disciplined with this plan and it will work for you.

When the second debt is paid, add the total you were paying on it to debt #3. Keep doing this until all your debt is gone.

Here’s an example:

* Credit Card #1 has a balance of $2500 with a minimum payment of $65
* Credit Card #2 = $4500, Minimum Payment = $115
* Credit Card #3 = $6000, Minimum Payment = $150
* Credit Card #4 = $9500, Minimum Payment = $240
* Car Loan = $13,000, Payment = $450

To clarify further, why don’t we say that you have as your acceleration amount, $100. This means that to start off on your plan for how to get out of debt, you’re going to pay the first credit card $165 every month (the minimum of $65 plus $100 acceleration amount) and then pay only the minimums on the next 4 debts.

Once you have this first credit card paid off, now go ahead and add $165 to the $115 minimum that credit card #2 wants. This means you’ll now pay card #2 $280 each month. By the time you get to your car loan, you’re paying your entire $1,120 debt budget to your car loan!

Speeding Along…

Do you see how fast you can eliminate debt once you get this credit card debt management strategy ball rolling?

Again, just to clarify all this even more for you, here’s how I arrived at that $1,120 figure: I added up all your minimums plus your acceleration amount, $65 + $115 + $150 + $240 + $450 + $100 = $1,120)

Are you realizing the power of this strategy as each debt is paid off? You’re hitting each successive credit card with a higher payment, thus being able to get out of debt much more quickly. It goes slow until you get the first couple paid off. Have patience and you’ll be out of debt in no time.

When I used to help clients during my financial planning days, some would be on track to be out of debt in 50 years. Once I showed them that they could eliminate debt in 3, 4, 5 or 10 years, depending on the situation, they called me a friend from that point forward.

I didn’t use a mortgage in this example, but imagine a figure such as $1,120 a month to add to your mortgage. How long would it take to eliminate that debt from your life at that pace?

Pretty exciting credit card debt management strategy, huh?

Debt stacking works. Put this plan into action immediately. This is exactly how to get out of debt.