Snowballing

us,thecat&thedebt

hi

situation is that we are gonna have an extra grand a month to repay our debts in about 3 months time..
this is on top of the 200 min payments that we have with our creditors...
all our debts are on arrangement

what we want to know is do we throw the money into the debts to pay off or do we save the money and when we have enough to meet a settlement figure pay it off ie to gain interest...

ideas opinions please....

to add none of the debts are having intrest applied loan intrest is already applied...

if we settle loan early do we get back some intrest anyone settled a loan early is with lloyds

Biffa

Hi,
If you settle the loan early, you may incurr penalty charges. Can you post a SOA so we can see what sort of debts you have?

us,thecat&thedebt

debts as follows

loan 6227 £70 per month
argos card £627 £20 per month
tmobile 550 £15 per month
vodaphone 300 £20 per month
odrafts 800 £30 per month
family 3000 no arrangement at moment
dfs sofas 1269 £30 per month
tesco ins 100 £10 per month


the loan is on a six month agreement as we were in arrears in 6 months they are going to refinance the remain of loan and od into new loan better intrest rate ect but only if we keep to the six instalments..

argos card is with moorcraft so no intrest on that thank fully have kept to my £20 per month agreement with them in fact have paid 80 in last two months
rang them for settlement figure said it would be 495 and would be due in 14 days


tmobile with fredricksons whom are nice people however i want this debt gone gone gone asap as im having probs with tmobile with regards to westcot contacting me for the balance to!!!
rang them and they gave me a settlement of £430 which will need to be paid 30 days from settlement given..

vodaphone is with westcot.. no intrest and apparantly no settlement figure..
therefor 20 per month it is for them lol

o/d 30 per month although can pay more if wish as get charged 8 pound in intrest per account (2) if there is any balance in 6 months they will put the remaining in with the refinance loan..

family debt might not seem a priority to some but we do need to pay it back as the people who we owe are in the red becos of us and it isnt fair
idea is as of next month we repay 200 per month..

dfs is on 36 months intrest free 30 per month so no problems there but wouldnt mind getting rid of it earlier...

tesco was for a cancelled policy no intrest on this one but again would be nice to get rid of it...

us,thecat&thedebt

ooops almost forgot od at another bank is 2000

Biffa

Hi,

If you're going to have a grand a month to throw at this, then I'd start with the smallest and clear them in one go. In the first month, you could get rid of both Argos and Vodaphone. The following month, I'd throw it at the overdraft for £800. By then, you'll have an additional £70 to add to the orginal £1k. The following month, I'd get rid of Tesco and T Mobile. Any left over can go towards sofa debt. The following month you should be able to clear the Sofa completely. By now, you'll have over an extra £100 a month, so start shoving it at the loan to bring that down. I'm afraid family will have to wait until you've cleared everything else.

How long is the extra £1k a month guranteed for?

Others may have different suggestions....

us,thecat&thedebt

the thing with asking family to wait is when they are over there overdraft to cover what you borrowed and promised to pay back over a year ago it is only fair to pay them at the same rate as other debts which are intrest free..

the sort of idea you have is what i have in mind but what i wasnt sure was if i should save the money and rather than give it to creditors does that make sense...

you know dont give them more than they need per month and allow it to gain me intrest

the extra grand a month wont be starting till about july when my tenancy finishes and im able to move into rent free accomadation (my nan died) so im moving there untill my mum sells up
as for how long could be for 4-12 months depends on how sale goes...

up untill then i have 600 to throw at debts on top of repayments...
i thought all debt companys had a settlement figure is it unusal for a company to say there client has instructed no settlement?

thanks for your help..