Advice Please

CandyCupcake

Heyy

im just wondering what other people advice would be and what they would do in my situation.

I have just been going over mine and my partners finances and I came up with an idea but I dont know if it would be a good one...

We share everything, and I'm wondering what you would of the idea of combining our debts and us working together to clear one debt at a time. So both chip in the same amount to one debt each month - meaning the debts would be cleared alot sooner. What do you think?

Any advice would be greatly appreciated

xx

fatbelly

If you're able to meet the minimum payment on each debt, then working together and using surplus income to clear highest-interest debts in order is a good idea.

It's snowballing, but on a joint basis

http://www.whatsthecost.com/snowball.aspx

[Deleted User]

I agree with fatbelly. If you're in a stable relationship and trust each other then this is the most financially sensible thing to do. By the sounds of it you are if you're already sharing everything else.

List each of the debts starting with the one that has the highest interest rate, and thus costing you the most, then the next most expensive until and on down the list to the least expensive, then pay them off in this order from the most to least expensive. This way you will be paying back more of the debt, and ultimately as you'll be paying less in interest you'll pay back less overall.

D9

CandyCupcake

Thanks guys for your help! I've spoken to him about it and he's agreed it now works out we will be totally debt free by Jan 2014 and we also have some money left over incase of emergency which we didn't have before we combined the debts!!

xx

FireWyrm

Some people might consider me to be old fashioned, but I've always considered that all money was household income as all debts are household debts. I know many people have different ways of running their household finances, bit I've never understood how they manage when it is split. We've always paid salaries into a house account and one of the payments out was effectively 'pocket' money to our private accounts. Result, all bills always paid and whatever is left, is fun money.