Snowball Plan

tryingtocutback

Is anyone able to give me details of the snowball plan?

Thank you in advance.

Tixy

Hi

The snowball method is to pay all of your debts the minimum repayment except for the one with the highest interest rate which you pay as much as you can afford each month. Once that debt is clear you 'snowball' that payment to your next hhighest cost debt (along with the amount you were paying to that debt).

Here is a calculator http://www.whatsthecost.co.uk/snowball.aspx
Basically snowballing is to try to ensure you pay the least amount of interest possible and is motivating as you can predict a debt free date when all your debts will be clear.

tryingtocutback

Thank you for explaining.

My debts are all on one card so it doesnt really apply to me after all.

Thanks again.

GeorgeUK

Is the card 0% or are you in a position where you may be able to apply for one?
Although there is a transfer fee, it means you would be paying alot less to that than you would in interest.