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Help with Snowball please

SugarPlumFairy_3
SugarPlumFairy_3 Posts: 29 Forumite
in Debt-free wannabe
Hiya.

Well i have bitten the bullet and done my snowball date - actually not as bad as I thought! :j

But dont really understand it so i wonder if anyone could explain something to me.

I put in 2 of my cards which are currently 0% for the next 9 months but on the chart thingy it says i should pay these off first - why is this?! I thought i would do better throwing money at my mint card which has the biggest balance (£4600) at 14.9% but now im not so sure.

Sorry if im being a bit of a dimwit!!!

thanks

x
Debt free date: Feb 2010 :eek:
(Hopefully sooner!!!)

Comments

  • exessexmum
    exessexmum Posts: 398 Forumite
    Car Insurance Carver! Cashback Cashier
    I have had the same concern, but I think that the snowball thingy doesn't "understand" the concept of tarting, therefore it looks at clearing as much of the debt as possible before the interest rate reverts to a high one? (If I'm wrong, someone more au fait with the system will probably say so LOL)

    When I did mine I put the credit card down as being 0% all the time as I intend to tart around for the life of the balance if I can.
    Hope that helps
  • SugarPlumFairy_3
    SugarPlumFairy_3 Posts: 29 Forumite
    just changed it and that does seem to make more sense!
    Debt free date: Feb 2010 :eek:
    (Hopefully sooner!!!)
  • Xbigman
    Xbigman Posts: 3,918 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The snowball calculator also does not take into account the different types of credit very well. IE For those struggling to pay everything I usually suggest paying off an overdraft first because it could be cancelled at any time (a favourite bank tactic) even if its not the highest APR. An exception would be a long term 0% overdraft, which is too valuable to give up easily.
    Regards



    X
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
  • johannamse
    johannamse Posts: 498 Forumite
    What was the result sugarplum? (you don;t have to say if you dont want)
  • frugglewump
    frugglewump Posts: 680 Forumite
    500 Posts
    AS I understand it - the snowball look at the rate the cards will revert to after the 0% is up.
    For my cards it advises:
    paying off the 17.9%,
    then the 0% which will change to 14.1% in august,
    then the 6.9% LOB card
    Still wish I could buy a TARDIS instead of a house!
  • SugarPlumFairy_3
    SugarPlumFairy_3 Posts: 29 Forumite
    The result was February 2010 - but I think it should be sooner than that as I am due about £7,000 middle of next year!

    x
    Debt free date: Feb 2010 :eek:
    (Hopefully sooner!!!)
  • Frugal_Fox
    Frugal_Fox Posts: 1,002 Forumite
    Firstly - Well Done SPF,

    Least you have a date to be working towards now - and as you say, it may well be sooner. Good luck and continue to post.

    FF
    "A simple life freely chosen is a source of strength. Do not be pursuaded into buying what you do not need or cannot afford." Quaker Faith & Practice 1.02.41
  • DJ1UK
    DJ1UK Posts: 373 Forumite
    Part of the Furniture 100 Posts Photogenic Combo Breaker
    Can someone give me a link so that I can calculate my snowball date too?

    Thanks

    DJ
  • *Sparkle*_3
    *Sparkle*_3 Posts: 503 Forumite
    http://www.whatsthecost.co.uk/snowball.aspx
    Abbey Loan £6,000
    Tesco loan £3,000
    Tesco points --- £100 worth £400 in deals for holiday! :j :T
    "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." (Charles Darwin)
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