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Snowball tells me to pay off 0% first - is this right?
Skinnylatte
Posts: 1,244 Forumite
in Credit cards
I have a card with a balance on that is 0% interest for 15 months. When I use the snowball calculator, the one that allows you to put in an initial promotional rate it tells me still to pay of the 0% interest first, is this correct? I thought that I was supposed to pay the highest interest rate first.
Pay off Car Loan £17,047 £10580 by Christmas 2022
Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE] £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE] £100,546 26.1
% DI [STRIKE]£9.13[/STRIKE] £6.07
1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/2015
Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE] £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE] £100,546 26.1
% DI [STRIKE]£9.13[/STRIKE] £6.07
1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/2015
0
Comments
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Is it sorted by 'intetest' or balance?0
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I sorted it by interestPay off Car Loan £17,047 £10580 by Christmas 2022
Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE] £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE] £100,546 26.1
% DI [STRIKE]£9.13[/STRIKE] £6.07
1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/20150 -
Hmm...any other clues? Have you entered a correct term period for the 0% and the 0% in the right place? And the APRs for your other accounts?0
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It could work out cheaper in interest overall to pay off the 0% card if the standard APR on that card is high, and the standard APRs on your other cards quite a bit lower.
So the calculator could be correct based on the levels of debts and repayment level you have entered in to it.
E.g if you have 2 cards with £1000 on each, 1 is 0% for 3 months and then 29% for the remainder, and the other is 10% all through - then you would be better off paying off the 0% card first.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Card 1 is £1500 at 0% for 6 months then 24.9%
Card 2 is £1800 at 0% for 15 months then 24.9%
Card 3 is £6700 at 19.9%
Card 4 is £4900 at 19.9%
This is the order it's telling me to pay them off in, is this right?Pay off Car Loan £17,047 £10580 by Christmas 2022
Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE] £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE] £100,546 26.1
% DI [STRIKE]£9.13[/STRIKE] £6.07
1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/20150 -
sophie.christie wrote: »Card 1 is £1500 at 0% for 6 months then 24.9%
Card 2 is £1800 at 0% for 15 months then 24.9%
Card 3 is £6700 at 19.9%
Card 4 is £4900 at 19.9%
This is the order it's telling me to pay them off in, is this right?
How much repaid per month?0 -
How much repaid per month?
2% of the balance on each, or did you want to see actual amounts?Pay off Car Loan £17,047 £10580 by Christmas 2022
Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE] £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE] £100,546 26.1
% DI [STRIKE]£9.13[/STRIKE] £6.07
1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/20150 -
sophie.christie wrote: »2% of the balance on each, or did you want to see actual amounts?
What total amount have you put in that you can afford to put towards repayments each month?A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
sophie.christie wrote: »2% of the balance on each, or did you want to see actual amounts?
Sorry, I meant how much did you enter as your total available money to service the debts?0 -
I put in £500 per monthPay off Car Loan £17,047 £10580 by Christmas 2022
Mortgage 1 @ 23/03/2019 [STRIKE]£101297[/STRIKE] £84457 16.6% DI [STRIKE]£6.95[/STRIKE] £6.15
Mortgage 2 @ 12/04/2015 [STRIKE]£136121[/STRIKE] £100,546 26.1
% DI [STRIKE]£9.13[/STRIKE] £6.07
1st LBM 02/06/2013 £[STRIKE]21595[/STRIKE] Debt Free Day 27/03/20150
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