Hello! ... and a question about debt balance

vne101

Hi guys,

First of all hello to everyone on here, I've been reading quite a few of the threads on here for a while now and find the whole DFW forum is inspiring me to push ahead and clear our debt balance!

I've seen the various acronyms eg: LBM / DFW and am starting to get my head around them all! I'll be putting my SOA on here soon for some help and opinions, but in the meantime I've been playing with the snowball calculator to get a motivational debt-free date.

One thing I'm not sure about is that I rang one of the companies I have a loan with and they said my balance with them is say £6112 yet my settlement figure is around £4375. I understand the difference, but am a bit confused as to which to use for the snowball calculator. If I'm right in thinking the £4375 would be my true debt, then is this the figure to enter?

Many thanks!
Vne101

joedenise

I would enter the £6112 as the balance as this is what you will pay if you don't pay it off early.

Denise

TeamNicholson

Yes I agree with Denise, use the higher figure as the settlement figure changes regularly and if you dont pay it off early you will have paid the higher amount.

vne101

Thanks for the opinion, shame the consensus is the higher figure!