Debt Free? How do I work that out?

chaos5678

HI everyone,
I've just written one plea for help as a newbie, but forgot to ask How is everyone arriving at what is their debt free day, is there a formula of sorts somewhere,
(this is a silly question isn't it?)

Chortle_2

Use http://www.whatsthecost.com/snowball.aspx - should give you some idea of when you can expect to become debt free

HTH

Broken_hearted

No not a silly question. Someone will most likely have a scientific way to do it.I just looked at my ougoings verses what I can overspend on debts. Then I came up with 2008 not sure which month.

ms_london

I think I started this whole trend??!! Or maybe not! :0)

Basically you need to calculate your remainding debt by the amount you can afford to repay each month, which will give you X more repayments until you will be debt free. Obviously you will need to take into account the interest payments too!!

To be honest, I actually wanted to be debt free by December 2005, so I calculated £10,000 by 11 and knew how much I needed to repay each month in order to be debt free. Once I had the figure, I did extra hours at my 2nd job in order to reach the amount I needed. I managed to make my last payment at the end of Oct 2005 in the end ((not sure how though, looking back!!)).

Ali-OK

It's a good question - on Monday I was in the same boat - I was reading sigs that mentioned snowballing and fortunately stumbled across a thread with a link in it to the snowball calculator.

The debt free date and the order in which to do it based on the APRs, gives me another motivator to save on everything, putting the rest to pay the debts. I plan to recalculate snowball regularly, as even the extra £5 or £10 will make a difference, plus I'm going to continue the cc shuffle keeping as much as possible at 0%.