The Challenge - Debt free in two years!

LittleMoog

What's the minimum repayment % on the MBNA card? Minimum payments of 3% (quite high!) on 8k would only be £240, so you could feasilbly continue to overpay the loan while paying minimum payment of CC. You could try putting both scenarios into the snowball calculator @whatsthecost.co.uk and see how much interest you'll save by moving a large chunk to 0%, and whether you can clear it before the 0% deal ends.

hiya btw, been lurking for ages, followed you over from jody and woo's diaries :rotfl:

Ceniza

Hey, welcome

I think it's 3% but after the 18 months it's high, so to clear it before then it would cost me £420 a month. Which would mean I couldn't overpay my loan. I'm going to have to look at my spreadsheets again I think...

LittleMoog

if you just paid the minimum, how much sooner would your loan be gone?
It might be possible to move the remaining CC balance to a new 0% card once the deal ends - eg you pay £240 for 18 months, but over pay and clear the loan in the meantime. CC balance is then approx £3600. Should be easy enough to move to a new 0% card when you have no other outstanding debts.

Ceniza

LittleMoog wrote: »

if you just paid the minimum, how much sooner would your loan be gone?
It might be possible to move the remaining CC balance to a new 0% card once the deal ends - eg you pay £240 for 18 months, but over pay and clear the loan in the meantime. CC balance is then approx £3600. Should be easy enough to move to a new 0% card when you have no other outstanding debts.

Now that is a plan. Hadn't thought about it that way. Annoyingly on the phone I told them I didn't want it, so awaiting a call back to see if i can open the application again.

Ceniza

Minimum repayment is 1%

Ceniza

Okay so I think I'm going to take the £8k they're offering at 0% and by my calculations that would mean I should be able to clear the Lloyds loan in total by the end of the year, given the interest saved from the 0% card. That would then give me 12 months to clear the card before the 0% runs out. Given that the minimum of 1% will be paid until then, I'd have £7,500 to clear in 12 monthly repayments of £626.66 meaning I will easily hit my goal of being DF by Dec 2012.

However, if I make £800 payments every month, then I'd be DF by October 2012 - bringing my DFD forward by 3 months

LittleMoog

Brilliant! it makes such a difference when you can escape some of the interest. good luck with it, I think we'll be racing each other to our dfds at this rate, I'm hoping to be df by September 2012....

Ceniza

Sounds like a challenge

I'm going to update my spreadsheets, to get a more definite DFD and a new plan!! Finally something moving in the right direction

Kepp

Good luck, hope MBNA will re-open the application for you

Ceniza

Oooops sorry, forgot to update. They did open it and the cards are on the way