I need help!

ryanm8655

zippygeorgeandben said:

Fantastic news on cancelling the consolidation loan!  That's a small victory to you and believe me, as the months go on and your debt comes down; that decision will look back at as one of the best decisions you could have made.

Couldn’t agree more.

Andyjflet

fatbelly said:

Andyjflet said:

So, in this order....pay the minimums on the rest until the first one is paid, then put that £25.84 into the next Visa 8795 and so on. Its called snowballing.

VISA...........................470.......26........25.84
VISA 8795......................1286......40.29.....27.95
VISA 9304......................1701......25........23.9
PAYPAL.........................1800......70........19.9
VISA 6518......................3040......30........23.9
VISA 8577......................3419......104.......27.93
VISA 4061......................4099......124.......27.93
VERY...........................4210......70........54.9

VISA 4280......................4836.39...48........0

VISA 8997......................6161.42...82.69.....19.45

Snowballing works more effectively like this

VERY...........................4210......70........54.9
VISA 8795......................1286......40.29.....27.95
VISA 8577......................3419......104.......27.93
VISA 4061......................4099......124.......27.93
VISA...........................470.......26........25.84
VISA 9304......................1701......25........23.9
VISA 6518......................3040......30........23.9
PAYPAL.........................1800......70........19.9

VISA 8997......................6161.42...82.69.....19.45
VISA 4280......................4836.39...48........0

but obviously the more of these that agree to 0% for a fixed period the better, and  the deals are there for the taking - you just have to ask.

Not if you're doing the DR method, small gains are proven to be psychologically more beneficial. If you make small wins the benefits are proven to keep you going longer in terms of performance. Marginal gains, smallest to largest works best. 

Fireflyaway

Cancelling the consolidation loan is definitely a step forward! Stopping borrowing is the first thing to do to get yourself debt free and also change your financial mindset. 
What I did to manage my debts was to contact the creditors directly. I explained that my debt was impacting on my ability to pay essential bills. They all froze interest and agreed to a repayment plan. Having previously used payplan I found it easier to do it myself. Going through payplan delayed any communication with creditors and changing payments if your circumstances change is slower. They also made offers on a percentage basis where as doing it myself I didn't follow that method. I tackled smallest to largest. It's definitely more motivational. Have a look at Dave Ramsey on youtube and watch the 'debt free screams' . There are people on there who have paid off crazy amounts of debts and they explain how they did it. It's a great inspirational thing to watch. 

in_need_of_direction

When does the 0% interest rate run out? Also, I’d combine both recommendations from people on here. I agree that very needs to be tackled but I’d wipe out the smallest debts.  Maybe go two thirds of excess to very and one third towards each smaller debt in order of lowest first.  Not only would you see money freed up as each became clear, someone like me needs to see progress or they get disheartened.  You know best what will keep you engaged.  Best of luck with it

ryanm8655

ryanm8655 said:

TheAble said:

fatbelly said:

Andyjflet said:

So, in this order....pay the minimums on the rest until the first one is paid, then put that £25.84 into the next Visa 8795 and so on. Its called snowballing.

VISA...........................470.......26........25.84
VISA 8795......................1286......40.29.....27.95
VISA 9304......................1701......25........23.9
PAYPAL.........................1800......70........19.9
VISA 6518......................3040......30........23.9
VISA 8577......................3419......104.......27.93
VISA 4061......................4099......124.......27.93
VERY...........................4210......70........54.9

VISA 4280......................4836.39...48........0

VISA 8997......................6161.42...82.69.....19.45

Snowballing works more effectively like this

VERY...........................4210......70........54.9
VISA 8795......................1286......40.29.....27.95
VISA 8577......................3419......104.......27.93
VISA 4061......................4099......124.......27.93
VISA...........................470.......26........25.84
VISA 9304......................1701......25........23.9
VISA 6518......................3040......30........23.9
PAYPAL.........................1800......70........19.9

VISA 8997......................6161.42...82.69.....19.45
VISA 4280......................4836.39...48........0

but obviously the more of these that agree to 0% for a fixed period the better, and  the deals are there for the taking - you just have to ask.

Yes and no. Clearly you'd pay less interest in this way - but if interest was the issue here then none of these debts would have been racked up in the first place. It's a behavioural/psychological problem, and you don't solve such problems with "maths" solutions. Paying off the debts smallest first can be more motivational as when each card is cleared and closed it gives a feeling of progress.

There are merits to both I think. But logically, paying the highest interest first makes sense plus the debt will go more quickly (provided this approach doesn’t impact motivation).

This is the reason I’ve used my total
debt figure as a KPI rather than the number of debts. Setting myself mini goals along the way based on what I can afford. Looking at the total
figure is daunting but it’s also a reality check. For years I had no idea what my debt figure was...it turned out to be a lot more than I thought. I think acknowledging the total and acceptance of that is a big part of a true light bulb moment.

Who reported this post as spam? A bit strange...