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Snowballing on 0% Debts...
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MissMuppet
Posts: 1,106 Forumite
I just entered all my information into the snowballing calculator and it told me I'd pay my debts off in 54 months!! :eek:
I have a question though... I managed to get all my creditors (bar Next) to stop adding interest to my debt! Here is what I owe each of them:
HSBC - £13,832
Egg - £875
First National - £705
Ex Company Loan - £635
Next - £600 (I still use the catalogue)
As there is no debt with high interest (apart from Next) I'm not sure how I would work it... I have just applied for a Lloyds Platinum card with 0% interest so I can transfer my Next amount over but I have a bad credit rating so I'm not holding out much hope!!
Any ideas? My income is £1300 a month and my household outgoings are around £600 a month so in reality I have quite a bit of extra money! I do spent alot on food and general everyday stuff though so I don't always have much left at the end of the month!
:xmastree:
I have a question though... I managed to get all my creditors (bar Next) to stop adding interest to my debt! Here is what I owe each of them:
HSBC - £13,832
Egg - £875
First National - £705
Ex Company Loan - £635
Next - £600 (I still use the catalogue)
As there is no debt with high interest (apart from Next) I'm not sure how I would work it... I have just applied for a Lloyds Platinum card with 0% interest so I can transfer my Next amount over but I have a bad credit rating so I'm not holding out much hope!!
Any ideas? My income is £1300 a month and my household outgoings are around £600 a month so in reality I have quite a bit of extra money! I do spent alot on food and general everyday stuff though so I don't always have much left at the end of the month!
:xmastree:
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Comments
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Start with the NEXT card as it's the only interest-bearing account. After that, as all are frozen accounts, start with the smallest and work your way up. After you pay off each card, have that card company re-activiate the card - BUT DON'T USE IT. If you do use it, earmark the money to pay at the end of the month. This will help build your credit rating while you are paying off your debt.:rudolf:0
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Unfortunately or fortunately depending on how you look at it all the accounts ended up going to collection agencies apart from the First National debt... this was a car I bought on HP! So anyway the egg card got cut up and the HSBC debt was a mixture of loans and overdraft.
I did think about paying off the smaller ones first and working my way to the highest... I guess I need to wait and see if I get this Lloyds credit card!
:xmastree:0
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