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comply with the WebVTT specification dated March 27, 2017. 00:00:01.568
--> 00:00:02.636 line:80% Debt stacking. 00:00:02.903 --> 00:00:04.905
line:80% By taking into account the interest rate 00:00:04.972 -->
00:00:06.306 line:80% and the amount of debt, 00:00:06.373 -->
00:00:08.876 line:80% debt stacking identifies an ideal order
00:00:08.942 --> 00:00:10.611 line:80% for you to pay off your debts.
00:00:11.478 --> 00:00:14.748 line:80% You began on making consistent
payments on all of your debts. 00:00:15.582 --> 00:00:18.452 line:80%
The debt that debt stacking suggests that you pay off first 00:00:18.518
--> 00:00:20.153 line:80% is called your target account. 00:00:20.220 --
> 00:00:22.789 line:80% When you pay off the target account, you roll
that payment 00:00:22.856 --> 00:00:26.059 line:80% into the payment you
are making on your next target account. 00:00:26.126 --> 00:00:27.761
line:80% As each debt is paid off, 00:00:27.828 --> 00:00:29.997
line:80% you apply the amount you're paying to that debt 00:00:30.063 --
> 00:00:32.900 line:80% to the payment you are making on the next target
account. 00:00:33.333 --> 00:00:37.104 line:80% Debt stacking allows you
to make the same total monthly payment each month 00:00:37.170 -->
00:00:38.438 line:80% toward all of your debts 00:00:38.505 -->
00:00:41.341 line:80% and works best when you do not accrue any new
debts. 00:00:41.408 --> 00:00:42.843 line:80% You continue this process
00:00:42.910 --> 00:00:44.745 line:80% until you've paid off all your
debts, 00:00:44.811 --> 00:00:47.681 line:80% and when you finish paying
off your debts, you can apply that amount 00:00:47.748 --> 00:00:50.517
line:80% toward creating wealth and financial independence.