← Back to Education CenterTurn paid-off debt into the next financial step
Debt Stacking & Cash Flow
Debt stacking is an educational method for directing the payment from a paid-off debt to the next target debt instead of lowering the household's total monthly debt payment.
01
Keep the total payment moving
The concept starts by making the required payments on all debts. When one target debt is paid off, its former payment is added to the payment on the next target debt.
02
Avoid new debt
The strategy works best when new balances are not added while the existing debts are being paid down.
03
Redirect the cash flow
Once the debts are eliminated, the same monthly cash flow can potentially be redirected toward emergency savings, short-term goals, or long-term investing rather than disappearing into new spending.