Snowballing and 0% Balance Transfers

cakeforbrains

I'm sorry if this has been asked before.

I've just punched our debts into a snowball calculator and, complicated story short, it suggests that we pay off our 0% promo rate balances first before the deals end.

Our instinct was to leave them on minimum payments while we service other cards that do have interest (presently 6.9%) and then, once the 0%s end, BT again.

I realise that we'd be taking a bit of a gamble that new 0% promos will be available, but we do still get offers so we're fairly confident.

Are we doing it all wrong???

Million_Percent

Depends on the proportions of debt and how quickly you can pay it off. If you have a large debt incurring interest and a small debt on 0% then better to focus on the large debt but if you have a large debt on 0% and only a small debt incurring interest then it's likely that you'd be better to pay down the 0% debt first. Don't forget you'll incur a fee every time you move the 0% debt to a new deal.

cakeforbrains

Thank you. I think I have worked out what I am going to do. I'll probably throw money at one 0% card to clear it by the summer (before it reverts) but leave the other 0% (as it's 'hidden under' a 6.9% anyway) and then hope to BT that when it reverts in October.

So a moderate approach.