My Plan - Foolish or foolproof?

nikki32

Thanks to the wonderful people on this site (esp. dfw and oldstyle) I have a nice healthy surplus each month! :T

2007 is the year I stop 'charging around town' and get a grip of my debt. I have a plan I would like to put past you very wise people.

WARNING it is boring.......sorry

Background - I owe

Fixed loan bal.£9500 @6% 3 yrs left
I pay £266 p/m

Flexible Cahoot Loan £4800 14% :eek: (evil bug gers keep rising it)
min repay £95
I pay £350

Virgin CC £3250 (6mths left for 0% BT)
I pay min of £5

Now here's the plan

I've been accepted for M&S cc 3.9% life of balance

I hope to move virgin cc to this
(so M&S will have £3250 @ 3.9% but no idea what my new min repayment will be)

I will transfer £3350 of cahoot to virgin CC
(so £3350 @ 0% until Aug then 15%)

I can then throw everything at the evil Cahoot loan new bal £1450 (you can probably tell I don't like them) I hope to pay £350 to £450 p/m & pay off in 4 mths.

when Virgin 0% up will hopefully get another 0% and so on

Then save in high interest a/c and settle the 6% fixed loan then the M&S CC.

So that's it! My head hurts!! Spending money was so much easier (no thought required)

Can you see any holes in my plan? Is there and easier way? Will i be saving alot on interest or giving myself a whole lot of hassle?

Your views will be much appreciated.

Nikki

iceicebaby

Hiya

You need to use the snowball calculator, you input all the information and it tells you which debts to tackle in what order to save the most on interest.

Not sure where the link is ill go and have a look

clarab_3

nikki32 wrote:

Thanks to the wonderful people on this site (esp. dfw and oldstyle) I have a nice healthy surplus each month! :T

2007 is the year I stop 'charging around town' and get a grip of my debt. I have a plan I would like to put past you very wise people.

WARNING it is boring.......sorry

Background - I owe

Fixed loan bal.£9500 @6% 3 yrs left
I pay £266 p/m

Flexible Cahoot Loan £4800 14% :eek: (evil bug gers keep rising it)
min repay £95
I pay £350

Virgin CC £3250 (6mths left for 0% BT)
I pay min of £5

Now here's the plan

I've been accepted for M&S cc 3.9% life of balance

I hope to move virgin cc to this
(so M&S will have £3250 @ 3.9% but no idea what my new min repayment will be)

I will transfer £3350 of cahoot to virgin CC
(so £3350 @ 0% until Aug then 15%)

I can then throw everything at the evil Cahoot loan new bal £1450 (you can probably tell I don't like them) I hope to pay £350 to £450 p/m & pay off in 4 mths.

when Virgin 0% up will hopefully get another 0% and so on

Then save in high interest a/c and settle the 6% fixed loan then the M&S CC.

So that's it! My head hurts!! Spending money was so much easier (no thought required)

Can you see any holes in my plan? Is there and easier way? Will i be saving alot on interest or giving myself a whole lot of hassle?

Your views will be much appreciated.

Nikki

why not just move as much as you can of the cahoot onto the new LOB card and save yourself a couple of transfer fees? Is there a difference?

Sorry if Ive missed something - it looks good plan though - you have my sympathy with cahoot - they have me too and I cant afford to switch

iceicebaby

http://www.whatsthecost.co.uk/snowball.aspx

There it is

follow the step by step instructions and it will tell you what to throw the most money at

nikki32

Hi Clarab,

As I recently found out you can't transfer a loan to M&S cc only other ccs.
However virgin does allow this. God forbid they'd make it easy!

Sweetrevenge

Hi Nikki I was hoping to transfer a loan balance to my M&S - please could you tell me how did you find this out?

nikki32

Sweetrevenge,

I thought i read it somewhere on this site. I might be wrong & I hope I am.
Can anyone else shed some light on this?

edited (it said on email 'Transfer your balance
from any store or credit card within 6 months of account opening and pay
3.9% pa for the life of the balance)

nikki32

Hi ice
Thanks for the link it was a great help.

I worked out if I keep going the way I am it will take 40mths and £1669 in interest to repay my debts.

If I make the changes it will take 27months and £791 in interest.

I'll sleep well tonight. Thank You

iceicebaby

Happy to help