what is snowballing?

cattie1

i know i ask a lot of silly questions but could someone please explain what snowballing is? (in detail?!)

wizard3891

It is paying the highest interest debts first so you pay less in the long run. have a look here.

https://www.whatsthecost.co.uk

never_again_2

You will need
*name of creditor
*amount outstanding
*APR
*monthly repayment
*Promotional APR and months left
*if you can overpay
*how much you can spend each month on debt

Make a list of all your creditors - Loans, Overdrafts, Credit Cards, catalogues, etc. Call each one (or check your most recent bill) and ask for your settlement figure and your current APR. Don't be drawn into a long conversation about why you want to know - simply say "because I do" if asked - if you don't want to be quite that rude, just say your keeping track of what you owe where. They will try to coax you into taking out another loan, etc so be on guard!
You need to know your settlement figure as it stands now because the snowball calculator will add the interest to each months balance. So if you put in you balance (to end of term) and the interest rate in the calculator, it then doubles the interest and will look like you owe more than you do.

You will be provided with a table showing which debs to pay off first in order to reduce the term and the amount you pay in interest. If you have a loan and can't make regular repayment, set up a savings account (or invest in premium bonds so you can't get to it easily, this is what I do) and when you have enough saved, pay the loan in full.

I have my snowball print out stuck to the fridge and each month I cross off the debts paid. I'm an looking at christmas next year (not bad for over £22k!)

Let me know how you get on.

Kevicho

i know where not supposed to advertise. but what the hell

this is an example from the site ive been working on, its in flash so youll need the appropriate plugins for your web browser

http://www.dnrlive.co.uk/wdf/snowballing2.html