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Snowballing
Droopyk
Posts: 80 Forumite
Hi
Can someone out there please explain to me the term Snowballing;
I have a very large amount of debt,done the usual things of starting to reduce my outgoings.
My credit worthyness is very poor so will not be able to do bt's,called Barclaycard and got them to reduce my interest rate to 6.9% providing i spend £50 p/m
Any assistance would be greatly appreciated
Can someone out there please explain to me the term Snowballing;
I have a very large amount of debt,done the usual things of starting to reduce my outgoings.
My credit worthyness is very poor so will not be able to do bt's,called Barclaycard and got them to reduce my interest rate to 6.9% providing i spend £50 p/m
Any assistance would be greatly appreciated
#95 1p challenge =£667.95 1p challenge=£667.95 Reverse 1p challenge=£667.95 Reverse 1p challenge=£667.95 £1 weekly challenge =£1378 £2 a day challenge=£730 £1 a day Xmas challenge=£365Mortgage £141k..... Looking to reduce by £15k by end of yearCredit cards#1 Barclaycard =£3500#2 Amex plat =£1700#3Amex b.a=£2200#4 M&S =£1800#5 Marbles=£2700#6 Debenhams=£1500#7 Tesco=£800Looking to clear at least 5 by end of year
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Comments
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http://www.whatsthecost.com/snowball.aspx
Put your debts into this calculator plus how much you want to pay and then it works out your Debt free date.
Total 'Failed Business' Debt £29,043
Que sera, sera.
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Hi there, have a look at https://www.whatsthecost.com for the snowball calculator.
The principle is that you pay the minimum payment on most of your cards, but throw as much as you can to the highest APR. Then when that is paid off, make the extra payment to the next highest etc. This will show you in which order to pay things off and how long it will all take.
The same principle applies should you wish to pay off the smallest debt first, although this is likely to take a little longer.
Have a play on the calculator and see how you get on!
(I love snowballing!!)Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0 -
Hi DroopyK
In simple terms, do as Immoral Angel says, list your debts on www.whatsthecost.com in order of the highest APR to lowest , any overpayments you can manage should go to the debt with the highest APR first (debt 1), continue paying minimum payments to the rest of your debts . Once debt 1 is paid off add what you were paying to debt 1 (including overpayments) to your next highest debt (debt2) until it is paid off, then carry on with debt 3 etc in the same way. Your payments will grow like a snowball down a hill hence"Snowballing"Every day above ground is a good day.0 -
Thanks for the quick replies will have a go on the calculator as soon as brave enough to total up the debt.... It is around 40k all unsecured but thinking of poss dmp, bankrupcy or iva.
Not in my best options as want to get a mortgage, can get £25,000 for giving up my council tenancy and use it towards some debts.
Again advice would be appreciated.
Thanks#95 1p challenge =£667.95 1p challenge=£667.95 Reverse 1p challenge=£667.95 Reverse 1p challenge=£667.95 £1 weekly challenge =£1378 £2 a day challenge=£730 £1 a day Xmas challenge=£365Mortgage £141k..... Looking to reduce by £15k by end of yearCredit cards#1 Barclaycard =£3500#2 Amex plat =£1700#3Amex b.a=£2200#4 M&S =£1800#5 Marbles=£2700#6 Debenhams=£1500#7 Tesco=£800Looking to clear at least 5 by end of year0 -
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