Paying off debts in order of interest rate (highest first) while making minimum payments on others. A quick way to estimate how long it takes an investment to double.
Why It Works:
Reduces total interest paid and shortens payoff time.
Example:
Focus on a 19% credit card before a 5% car loan.
FAQs:
Is debt stacking better than the snowball method?
Stacking saves more interest; snowball helps motivation. Use a hybrid approach if you need momentum.
Practical Tip:
Consider consolidating high-interest debt into a lower-rate loan if feasible.