Snowball or Avalanche - Opinions please

TheAble

Likely loans does allow overpayments though, and would appear to have a representative Apr of 60%. Is there not a strong case for tackling this one first?

SusieT

rigare11a said:

Ok so after getting some new rates from SB and validating the min payment amount I have recalculated below also chucking an extra £10 pm at the payments. I will need to pay a bit more than minimum on PayPal else it will go over the arranged limit. But I think I am going for the avalanche 

Thanks for all your inputs 

If you do a standing order for £15 a month to PP, it will bring the total down a little bit each month, and will also bring the date forwards to May next year, so you get another bit of motivation

Sea_Shell

TheAble said:

Likely loans does allow overpayments though, and would appear to have a representative Apr of 60%. Is there not a strong case for tackling this one first?

I would have though that even when a loan has all the interest "pre loaded" onto your fixed monthly payments, any over-payment would bring down the total payable over the term of the loan.   So yes, I think this option would need investigating further, especially if it has a higher APR than the others.

I can see where the confusion would lie though, as you don't have an ongoing "balance" as such, like you do with a CC, overdraft or Credit account.

rigare11a

SusieT said:

rigare11a said:

Ok so after getting some new rates from SB and validating the min payment amount I have recalculated below also chucking an extra £10 pm at the payments. I will need to pay a bit more than minimum on PayPal else it will go over the arranged limit. But I think I am going for the avalanche 

Thanks for all your inputs 

If you do a standing order for £15 a month to PP, it will bring the total down a little bit each month, and will also bring the date forwards to May next year, so you get another bit of motivation

Thanks Susie I will do that for sure! 

rigare11a

Sea_Shell said:

TheAble said:

Likely loans does allow overpayments though, and would appear to have a representative Apr of 60%. Is there not a strong case for tackling this one first?

I would have though that even when a loan has all the interest "pre loaded" onto your fixed monthly payments, any over-payment would bring down the total payable over the term of the loan.   So yes, I think this option would need investigating further, especially if it has a higher APR than the others.

I can see where the confusion would lie though, as you don't have an ongoing "balance" as such, like you do with a CC, overdraft or Credit account.

Thanks Able and Shell, I will give them another call today and check. Last time I called the rep on the phone sounded a bit unsure and then stated that the balance is the balance whether I pay today or not. Maybe I will see if I can get someone a bit more savvy on the phone

thriftychick

Good luck with your debt free journey, you seem really motivated and on the ball.

Personally, I would repay the overdraft first, save up an Emergency Fund and then snowball the debts  It worked for me. 
Can you transfer any of the debt to 0% cards even if it is just part of the amount?  

rigare11a

thriftychick said:

Good luck with your debt free journey, you seem really motivated and on the ball.

Personally, I would repay the overdraft first, save up an Emergency Fund and then snowball the debts  It worked for me. 
Can you transfer any of the debt to 0% cards even if it is just part of the amount?  

Thank you, I did think about 0% cards but I was recently declined finance application so don't think I would get approved for a card. 

Sea_Shell

rigare11a said:

Sea_Shell said:

TheAble said:

Likely loans does allow overpayments though, and would appear to have a representative Apr of 60%. Is there not a strong case for tackling this one first?

I would have though that even when a loan has all the interest "pre loaded" onto your fixed monthly payments, any over-payment would bring down the total payable over the term of the loan.   So yes, I think this option would need investigating further, especially if it has a higher APR than the others.

I can see where the confusion would lie though, as you don't have an ongoing "balance" as such, like you do with a CC, overdraft or Credit account.

Thanks Able and Shell, I will give them another call today and check. Last time I called the rep on the phone sounded a bit unsure and then stated that the balance is the balance whether I pay today or not. Maybe I will see if I can get someone a bit more savvy on the phone

Do you have all the T& C's to hand?  

That should detail any early redemption penalties or maximum payment without penalty, if any, and how interest/period would be recalculated.

Best to be armed with the information before you ring to "confirm" with them.

rigare11a

True - I think they send me a statement each year on email I will dig that out, I must have it somewhere in the depths of my emails.

anna42hmr

rigare11a said:

thriftychick said:

Good luck with your debt free journey, you seem really motivated and on the ball.

Personally, I would repay the overdraft first, save up an Emergency Fund and then snowball the debts  It worked for me. 
Can you transfer any of the debt to 0% cards even if it is just part of the amount?  

Thank you, I did think about 0% cards but I was recently declined finance application so don't think I would get approved for a card. 

Different products/lenders have different ways at looking at debts and have their own credit scoring so does not mean you have no chance of a 0% balance transfer or money transfer card, you may want to check your eligibility on MSE's credit club to see, which does not leave permanent markers, also some banks do initial eligibility checks on their site (such as santander) without leaving a footprint first, so may be worth a look.