Dmharper MFW wannabe

Sepa74

Hi,

why don't you redo the interest calculations based on paying all your excess to the highest interest loan first...

I would be very interested to see the difference personally, and I'm sure others will too.

0% CCs are good if you are disciplined about not using them for anything else

dmharper

Sepa74 wrote: »

Hi,

why don't you redo the interest calculations based on paying all your excess to the highest interest loan first...

I would be very interested to see the difference personally, and I'm sure others will too.

0% CCs are good if you are disciplined about not using them for anything else

now i am lost, excess what ???

Sepa74

Well instead of splitting the payments between the accounts, put all the payments on the one with the highest interest. When that is paid off, put ALL the money on the loan with the next highest etc.

There will always be minimum payments to be made, so by excess I meant all the spare cash that isn't taken up by the minimum payments.

dmharper

Sepa74 wrote: »

Well instead of splitting the payments between the accounts, put all the payments on the one with the highest interest. When that is paid off, put ALL the money on the loan with the next highest etc.

There will always be minimum payments to be made, so by excess I meant all the spare cash that isn't taken up by the minimum payments.

i see, now i wish i could pay £400 out but it was £100 max as one overpayment not split, if that make any sense

dmharper

just as a comparison if was to £400 to pay as a chunk as one o/p.

54 k term reduced to 6 years saving approx £5082 in interest
11k term reduced to 2 years saving £5110 in interest
21k term reduced to 2.0 years saving £1602 in interest -this would free up potentially £710 pounds of cash that could be used sooner
7k term reduced to 1.1 years saving £912 in interest.

financialbliss

dmharper wrote: »

now i am lost, excess what ???

Pay the minimum required to service each dept each month. Any surplus (excess) income, payoff the debt with the highest interest rate.

Continue each month until your highest rate debt is cleared. Repeat with each debt in turn until you are debt and mortgage free.

Review which debt you are repaying as the interest rates change.

Any questions? We're here to help out...

FB.
PS Just re-read recent responses and Sepa74 has already said that...:o

Sepa74

So by splitting the payments, you would save 6,907 until all your debts were cleared, while by snowballing your debts (paying off the one with the highest interest first) you save £12,706.

Wow, that is a HUGE difference. You are saving nearly twice as much interest by snowballing. I am absolutely doing it if I ever take out another loan eg for a car, or end up with money on a CC.

Thanks for doing the calculations for us - what an eye opener!

dmharper

Sepa74 wrote: »

So by splitting the payments, you would save 6,907 until all your debts were cleared, while by snowballing your debts (paying off the one with the highest interest first) you save £12,706.

Wow, that is a HUGE difference. You are saving nearly twice as much interest by snowballing. I am absolutely doing it if I ever take out another loan eg for a car, or end up with money on a CC.

Thanks for doing the calculations for us - what an eye opener!

i think there is a slight confusion here, i would only be paying £ 100 Max on the highest interest not £400 spread out. or as in the last calculation £1600 if i had that i wouldnt be in debt :D

dmharper

nothing much to update, bit of an expensive weekend, night out fir at comedy club and finishing of decorating, had a plumber out for replacement sink unit.

still have some food money left to last till monday (Pay day), which is a surprise.

£30 o/p this month to mortgage, i also have £100 to make an o/p to which ever one i decide is best !

all in all a pretty decent month.

dmharper

anyone got a spreadsheet for a daily interest calculator ???

also of to see james in concert tonight, woo hoo oh and two moe work days then holiday to lanzarote on sunday :T:T:T

been paid, not sorted my o/p out yet !!!