Debt so bloody confused :(

p85ki

Thank you KellyKing1987 - I think I will do it that way. It will be alot easier then, so at least the M&S one will look more and more better as I am clearing it. :-)

RAS

Go to the snowball on www.whatsthecost.com and play with that.

It tells you precisely how to pay off the debt most effectively, how long it will take and how much interest you will pay in total.

p85ki

Just using the snowball, it keeps giving me until August. Going to try and re-arrange my finances so that it can be completed the latest for July.

Tixy

PasquiC wrote: »

Just using the snowball, it keeps giving me until August. Going to try and re-arrange my finances so that it can be completed the latest for July.

Is this based on paying off £700 a month? try upping it to say £720, then £740 etc to see how much you'd need to target paying to clear it by July

p85ki

Tixy wrote: »

Is this based on paying off £700 a month? try upping it to say £720, then £740 etc to see how much you'd need to target paying to clear it by July

Thank you, I just noticed, it is because it doesn't include January, it is starting from the 1st month, so with £700 it will work for July :j:T

MusicalLawyer

I didn't know about snowballing. I just tried it, and told me the best way to pay off the debts. Although, the way I planned it, made the debts clear faster than on the snowball calculator...

Tixy

KellyKing1987 wrote: »

I didn't know about snowballing. I just tried it, and told me the best way to pay off the debts. Although, the way I planned it, made the debts clear faster than on the snowball calculator...

On the snowball did you choose the 'clear debts in interest order' or 'clear debts in balance order' option?
You need to choose interest order to get the cheapest way of clearing them. If you did and it still differs from your previous calculations/planned options then there must be a difference somewhere in the amounts you entered, or the way you've calculated interest etc.

MusicalLawyer

They're all 0% so clicked balance.

Tixy

If they are all 0% then it should be exactly the same whatever order you choose or however you do the calculation. What is different about your previous calc?
If the overall balance is the same and the total monthly payment is the same then the number of months must be the same (although the snowball won't show a fraction of a month).

MusicalLawyer

What i was doing is once the biggest one is paid off (July), using that money to pay off the other 2 as well, using half each as the other 2 debts are roughly the same amount. Whereas snowballing just said to pay same amount per month, then the last 2 payments would be higher. I estimated September, snowballing estimated November - only 2 months difference though