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Get playing with snowballs!!
hypno06
Posts: 32,296 Forumite
Hi, these are absolutely my favourite thing at the moment - they are excellent for getting me motivated to make small changes.
For those of you who are newbies, a snowball calculation can be made at http://www.whatsthecost.com/snowball.aspx - you enter all your debts - don't cheat! - put them all down, smallest right through to scariest, add in your APRs and the amounts that you are paying, plus how much you can actually afford to pay each and every month.
The calculator will then give you an idea as to what you should concentrate on paying off first, in order to save you the interest and to get you free of debt quicker.
Finally, it gives you your much wanted Debt Free Date so that you have something to aim for - the light at the end of the tunnel.
The reason that I have found this to be so useful is that I really had no idea of my DFD. I could make a guess, but to see it there in black and white really gives me something to focus on.
Also, by doing the calculations a number of times, entering in an additional amount over and above the amount you are currently paying, you can see a direct result in your debt free date.
So for example. I added in an extra £10 a month to my snowball calculator and it says that my debt free date comes a month earlier. I have just switched my broadband provider saving me £10 a month, so by paying that difference directly of my debt, I know what the benefit will be.
By ebaying £50 a month, I can bring my debt free date forward by a further 3 months!
If my DH does one extra shift as overtime a month (achieveable if he makes it known he is happy to do this) then that is another 3 months sooner that we will be debt free.
I cancelled my cleaner this week which cost me £25 a week - 6 months sooner to being debt free!
So, even small changes such as £10 a month (and yes, I know it is easier said than done sometimes to find an extra £10 a month for some people), can make a real difference when snowballing. See what difference cancelling that unused gym membership really can make!
I have a very large amount of debt, so to see my debt free date getting closer and closer just by making a bit of effort is really very very motivating.
So, give snowballing a go! If you have not done it before, or have not done it for a while, you may be pleasantly surprised, and it will certainly focus your mind.
For those of you who are newbies, a snowball calculation can be made at http://www.whatsthecost.com/snowball.aspx - you enter all your debts - don't cheat! - put them all down, smallest right through to scariest, add in your APRs and the amounts that you are paying, plus how much you can actually afford to pay each and every month.
The calculator will then give you an idea as to what you should concentrate on paying off first, in order to save you the interest and to get you free of debt quicker.
Finally, it gives you your much wanted Debt Free Date so that you have something to aim for - the light at the end of the tunnel.
The reason that I have found this to be so useful is that I really had no idea of my DFD. I could make a guess, but to see it there in black and white really gives me something to focus on.
Also, by doing the calculations a number of times, entering in an additional amount over and above the amount you are currently paying, you can see a direct result in your debt free date.
So for example. I added in an extra £10 a month to my snowball calculator and it says that my debt free date comes a month earlier. I have just switched my broadband provider saving me £10 a month, so by paying that difference directly of my debt, I know what the benefit will be.
By ebaying £50 a month, I can bring my debt free date forward by a further 3 months!
If my DH does one extra shift as overtime a month (achieveable if he makes it known he is happy to do this) then that is another 3 months sooner that we will be debt free.
I cancelled my cleaner this week which cost me £25 a week - 6 months sooner to being debt free!
So, even small changes such as £10 a month (and yes, I know it is easier said than done sometimes to find an extra £10 a month for some people), can make a real difference when snowballing. See what difference cancelling that unused gym membership really can make!
I have a very large amount of debt, so to see my debt free date getting closer and closer just by making a bit of effort is really very very motivating.
So, give snowballing a go! If you have not done it before, or have not done it for a while, you may be pleasantly surprised, and it will certainly focus your mind.
Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)
Life begins at the end of your comfort zone (Neale Donald Walsch)
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Comments
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I use these too there ace keeps me motivated!Isn't the knowledge that comes from experience more valuable than the knowledge that doesn't?0
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