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Uh Oh We're In Trouble!
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Can someone just try this for me???????? i am ambsolutely stunned.
If you goto https://www.whatsthecost.com/snowball.aspx
and enter the following
no. of debts 1
Including your minimum debt repayments, how much per month do you want to spend on servicing your debt? £5.00
Balance £280.00
Apr 27.9%
Min Payment £5 fixed
This is one of the ops debts, and i know once the others are paid off she will snowball, but just entered it as an example, and that initial £280 balance, after only paying the £5 per month the figures of what will be outstanding in 51 years will be £98,388,406.17:eek: :eek: :eek: :eek:
Have a look at how much interest on only paying £5 per month, is calculated each month!!!
( i know this is ireelevant to the op, and this won't be happening as she pays off others debts fthis £280 will be paid back. But i am totally shocked!!!)0 -
Just my 2p worth.
Do you have any equity in your property?
I know going down the secured loan route is not a good idea but as you could end up losing your home if you do not keep up with repayments BUT if you schedule a new loan for 7 years (not the term of your original mortgage) at least you could dump most of those high APR 's and pay a single digit interest charge instead.
Think very carefully though as I have pointed out the dangers of this should you default.0 -
I've just tried it, unbelievable. Is it right?0
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Just my 2p worth.
Do you have any equity in your property?
I know going down the secured loan route is not a good idea but as you could end up losing your home if you do not keep up with repayments BUT if you schedule a new loan for 7 years (not the term of your original mortgage) at least you could dump most of those high APR 's and pay a single digit interest charge instead.
Think very carefully though as I have pointed out the dangers of this should you default.
We don't have much equity in the property as we've only had it for 1 year.
I don't want to go down the secured loan route however we always make sure that the mortgage is paid if nothing else!!!
Thank you!NewlyWed:p
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I think it would be a good idea to get hold of your credit reports and look at what your credit rating is like. Then if its not too bad, try to get some of the smaller debts lumped onto a life of balance or 0% interest card. Tbh, your main problem seems to be having little debts accumulating lots of interest and paying just the min per month means you'll probably be racking up more interest than you are actually paying off. Maybe to get it all clearer in your mind. Arrange all the debts into lowest to highest amount and try to pay off the smaller ones and then cut the card up. At the same time, stop spending anything apart from on the necessities for at least one month. and keep a diary of what you do spend. The obvious savers are lunches out when at work. Take packed lunches etc. Since January, we have only been spending money on what we have to, to live on and keep our vehicles on the road! You would be amazed at what you can save money on and how it soon racks up.Proud to have dealt with my debts. Nerd number 288:j Debt free date Dec 07 :EasterBun
Mortgage as at Dec 08 : £93,077.00
Mortgage as at Dec 09 : £ 87,948.12
Mortgage as at Dec 10 : £ 83,680.23
Mortgage target for Dec 11: £73,680.230 -
Could you or OH get overtime or extra job to try to tackle these debts? I know its not ideal but if you did it for 6 months you'd be amazed at the difference it would make.0
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Have you got anything you can seel on ebay/amazon? Anything you dont use.. its amazing how that can make a difference as well
Keep your chin up, you're making a huge first step.
Nicola xBe who you are and say what you feel because those who mind don't matter and those who matter don't mind.
Personal Finance Blogger + YouTuber / In pursuit of FIRE
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have you cut these cards up?
You have to make a real committment to living frugally or this really wont work.
I agree increasing income has to be something you sohuld consider strongly, even if its just a bit of babysitting, mystery shopping.
I agree moving your credit to a lower APR card would be a good idea, but i expect on your income you will be overextended and no one will give you another card- in case you run up that one as wellHowever, it is certainly worth calling up and asking for the APRs to be reduced if not frozen.
However, i suspect that your best bet, given that you havnet got anything in your budget for car repairs and so forth that a DMP is likely to be your best route. CCCS isnt a cop out, plenty of poeple here are doing them and to be frank it looks to me like you have very limited options.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
albertross wrote: »Assuming there are no penalties for early repayment, or front loaded interest, debts need to be tackled in highest apr order first, not highest or lowest outstanding balance. Make sure you pay min repayments on the rest in the meantime.
This is what the snowball calculator tells me to do. For instance the next payment on the £5 barclaycard is £106.40 which would mean this card will be paid off in July. Then move on to the next highest. If I follow it correctly I should have paid off Barclaycard, HFC (mine), Barclaycard (mine), Egg (mine) and welcome finance by May 2008. I feel that would be a huge achievement.
Obviously this will have an effect on my budget however if continue selling on ebay and cutting down on spending where its not needed and we stick to it then we should start to see the benefits?
I have applied for some new jobs which are higher paid so hopefully that could come off soon and we will have a bigger income.
Or am I missing something completely?NewlyWed:p
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One thing you can do to start getting back into a better state is to reduce the amount of available credit to you. Ive highlighted the ones I think are key hereHFC Credit Card £1350 @ £36pm 23.9%
Barclaycard £650 @ £20.00pm 19.9% ( reduce credit limit)
Egg Card £730 @ £25.00pm 19.9% ( reduce credit limit)
Capital One £200 @ £15pm 1.563%(* reduce credit limit
Cahoot Flexible Loan £4000.00 @ £106.00pm 15.3% ( is it possible to reduce or is 4k its limit- consider getting this moved to a fixed loan on a lower APR, cahoot put thier interest rates up a lot and often)Mint Card £400.00 @ £15.00 14.88% ( is this at its limit?)
Clydesdale Bank Loan £8000 @ £259.60 14.3%
Hubby:
Barclaycard £280 @ £5pm 27.9% ( again here )
Beneficial Finance Card £1000 @ £30pm 19.9%
Lloyds Credit Card £1500 @ £31pm 19.6%
HfC Loan £13000 @ £513.83pm 29.9%
Egg Card £5500 @ £100pm (0% as debt collectors involved)
Joint:
Welcome Finance Loan £1000 @ £96pm 32.5%
Lloyds TSB Loan £3000 @ £96pm 14.6%
basically if you have a 800 limit but owe 750, get them to reduce your credit limit to 750. everytime you make a payment- ask hem to reduce your credit limit. It shows up on your credit file as "settled" in part, so this will help make things appear better when looking for cheaper credit to "shuffle " to.
However I tihnk you are really going to be up against it as some of these APRs are high- so whatever you are paying you are not touching the balance as pot o gold says.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0
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