Confused by snowball....

longhauladdict

Hiya all

Sorry if I'm being a bit dumb!:p
I have put all my debts into the snowball calculator (whatsthecost.com) and was really happy with the DFD, especially as I can see how throwing extra money at it beings it closer and I could play around with it!
However, I'm finding it a bit confusing cos each time I add a payment (monthly usual payment not an additional one) it reduces the total but doesn't take into account any interest making my debt look less if you understand what I mean???? (not sure I do lol)
Am i not meant to add my payments, or do i need to add interest on also?

All I want is a simple calculator that I can input my payments into (monthly and additional payments) and it will calculate my DFD taking into account the interest rates? Anyone got anything like this they would be willing to share or point me in the right direction???:)

Thanks all xx

savingwannabe

I dont think you are being dump LHA. I dont know the answer but hopefully a clever bod will be along soon. Good luck,

:j

DarkConvict

You put in at the top, your surplus.

Then for each debt you put in the amount, min payment and rate of interest.

What it does then is for each month it calculates the interest and adds it to the debt, the min payment is calcuated and taken off each debt. Total Surplus minus Total payments = What is left as additional payments. This is then put on the one with the highest APR. So that when the next month is calculated that debt has had a significant chunk paid towards it reducing the interest incurred.

See below, the 2 debts added and the interest shown in screen-shot #2 as the end column.

LittleMoog

hiya, when you add your monthly payments, (using add transactions for each card in your saved snowball), you add your payment using the new payments button and you have to add the interest added and any additional spending with the new debits button as well. This keeps it up to date, as depending on your payment dates etc, the interest it calculates may be a little off. When you click on overview, it will show you the payments you've made to date, plus an estimate for the following months up to your DFD.
Hope that helps