Snowballing conundrum.

phinch

Help! I have decided to snowball by debts & have used the calculator to work it all out but it is giving me an impossible scenario. First, my debts:-

Cahoot Flexible loan owe £8092 @ 6.3%. Minimum payment 2%

HSBC Credit card owe 2904.16 @ 0% for 12 months & then 15.9%. (Just taken this out so just started 0% deal.) Minimum payment £50 (I think)

Clydesdale. Owe £500 @ £27.46 oer month at 37%.

Natwest non-flexible 7 year loan started 4/06 owe £13,931 at 7.3% at £395.95 per month

AA non-flexible loan 7 year loan started 12/05 owe £24,158.18 at 6.3 at £316 per month.

Now, I should finish paying the last of these, the AA in Dec 2012 but the snowball calculator shows me paying it up till Dec 2014! Help! What am I doing wrong? The snowball calculator appears to have got its sums wrong.

CLAPTON

what did it tell you to do?

mrs_deadline

Are you sure of your AA repayment figure, phinch?

Looks to me like snowball's absolutely right - £316 per month for 73 more months is only £23,068 which won't be enough to clear the amount borrowed. Add in compound interest and it would take years longer at that rate... must be something amiss with the original figures, I'm afraid

I think the Natwest and AA repayment amounts have been switched, easy done with them both being for 7-years

crawley_girl

How much can you pay per month towards debts. Without this it is hard to snowball...

:heartpuls CG :heartpuls

phinch

Sorry crawley-girl it's £1189.89 per month total debt repayments. No Mrs Deadline, the AA & Natwest figures haven't been switched.

By the way, I can pay the AA off earlier but not the Natwest one. I'll just have to divert the money into my savings or my mortgage, whichever is the best option at the time.

I was considering contacting an insolvency practitioner but I can afford to repay... just and have no secured loans, missed payments or CCJs and I don't want to mess up my chances of getting credit if I need it. I will ring the AA this morning & get them to check the figs & report back.

lynzpower

if you are not allowed to overpay, then your debt free date will always be the last payment on your fixed outgoing loan

phinch

Well I am now totally confused. The numbers on the AA loan just don't add up as I have rung them today and they confirn Jan 2013 as final payment date. Totally mystified. I suppose in some ways it doesn't matter as it's the last part of the snowball but I just wish I could figure out the discrepency.

I also cancelled the insurance so that should bring it down a bit & reduce the monthly payments.

crawley_girl

Did you take a payment break - you know 'have now, start repayments in 3 months' or something similar?

Just a thought...

:heartpuls CG :heartpuls

phinch

No I didn't. It is so depressing and seemingly so straightforward. I also think that HSBC are not going to let me have their credit card.

Funnily enough, the AA rang me yesterday offering me even more money at a lower interest rate with a payment holiday till Jan 07. I was proud of myself when I said, "No thanks." These people swarm around like sharks on the run up to Crimbo.

wilf55

phinch wrote:

No I didn't. It is so depressing and seemingly so straightforward. I also think that HSBC are not going to let me have their credit card.

Funnily enough, the AA rang me yesterday offering me even more money at a lower interest rate with a payment holiday till Jan 07. I was proud of myself when I said, "No thanks." These people swarm around like sharks on the run up to Crimbo.

proud of you saying no

well done