loan granted.

JBsplit

please explain snowballing.?

JBsplit

ok i did a search.
http://www.fool.co.uk/news/foolseyeview/2001/fev010904c.htm

i dont see how i can do this i have already cut all my spending and still dont have any extra to begin snowballing, my CC's drain evey penny.


also i know ive done wrong thats why me and many others like me join this forum so its unhelpfull your you to act like my dad and make me feel even more of a fool by making comments like ''10 years paying back for a chinese takeaway thats your prerogative''

ive addressed the problems now i am trying to sort them out.

nomoneytoday

JBsplit wrote:

ive addressed the problems now i am trying to sort them out.

The point was that a consolidation loan on its own is not sorting out the real issue. They mean more interest, more repayments, and more time in debt.

The real issue is why are your minimum payments and debt so high? Only you can answer that and make the necessary life changes to stop being drowned in debt.

Debt_Free_Chick

JBsplit wrote:

ok i did a search.
http://www.fool.co.uk/news/foolseyeview/2001/fev010904c.htm

i dont see how i can do this i have already cut all my spending and still dont have any extra to begin snowballing, my CC's drain evey penny.

Have you posted your budget or SOA here? Often, others can suggest savings that you can't see.

also i know ive done wrong thats why me and many others like me join this forum so its unhelpfull your you to act like my dad and make me feel even more of a fool by making comments like ''10 years paying back for a chinese takeaway thats your prerogative''

OK - I can understand that you might have been offended, but I think the point is that the longer the debts run, the longer it's taking you to pay for the things you bought on the cards. This can be a useful psychology to use on yourself e.g. before you use your credit card ask yourself "Am I happy having this item, knowing it's going to take x months to pay back?" or "Do I still want to buy this T-shirt knowing it will cost £20, when the interest is added on the card, rather than £10?"

These kind of tricks can help you curb spending on cards. BTW ... have you now cut up the cards?

I've addressed the problems now i am trying to sort them out.

Unfortunately, most people who take out consolidation loans have not curbed their spending desires. So the loan clears the cards and, armed with lots of zero balances, spending on the cards resumes and ..... well..... disaster looms. So ... have you cut up the cards?

I guess you know that the loan for £20k will cost you £30k over 5 years?

grumbler

Debt_Free_Chick wrote:

...I guess you know that the loan for £20k will cost you £30k over 5 years?

I don't like consolidation loans too and understand why you want to scarry the OP, but the correct figure based on the information provided (£20K, 7.4%, 120 months) is only:rolleyes: £28360 (£8360 interest), £236 monthly payments. I think, interest on CCs is higher than 7.4% and switching the CC debt to this loan could be a not a bad idea if the period of the loan is shorter than 120 month. With £483 monthly payments (lower than current £550!) the loan can be repaid during just 48 months and will cost only £3167 in interest. The same figures for other terms are:
60 months: £400p.m., £3989
72 months: £345p.m., £4828

I think 48 or 60 months term instead of 120 could be a good option - of course if all CC accounts are closed straight away.

http://www.whatsthecost.com/loan.aspx

JBsplit

trust me i have learnt from this, i will even post a picture of all the cut up cards.
as i said before i cant get any other cards to do a BT and they wont lower the rates so in about 3 months all the cards will be on full interest% with no where else to go. so i guess 7.4% is the lesser of the two evils.

on other question, as the money is payed direct to me do you think i should ask for a lower settlement figure from the CC companys or will i have to pay out the full amount.???

grumbler

JBsplit wrote:

...on other question, as the money is payed direct to me do you think i should ask for a lower settlement figure from the CC companys or will i have to pay out the full amount.???

A similar question was asked today: Family helping Clear Credit Cards

superjaggybunnet

I have just been lookin for a loan tonight and Northern Rock are offering loans at 5.9% apr

http://www.northernrock.co.uk/loans/quote/quickQuoteIM.asp?ref=655-1188

superjaggybunnet

Sorry, make that 5.7% apr

Debt_Free_Chick

grumbler wrote:

I don't like consolidation loans too and understand why you want to scarry the OP

No no .... honest. Just to provide the facts

but the correct figure based on the information provided (£20K, 7.4%, 120 months) is only:rolleyes: £28360 (£8360 interest), £236 monthly payments.

He'd mentioned £250 pm for 120 months ... which I simply took at face value, to arrive at a total of £30k

I think, interest on CCs is higher than 7.4% and switching the CC debt to this loan could be a not a bad idea if the period of the loan is shorter than 120 month. With £483 monthly payments (lower than current £550!) the loan can be repaid during just 48 months and will cost only £3167 in interest. The same figures for other terms are:
60 months: £400p.m., £3989
72 months: £345p.m., £4828

I think 48 or 60 months term instead of 120 could be a good option - of course if all CC accounts are closed straight away.

http://www.whatsthecost.com/loan.aspx

Can't disagree with any of that - cheers