snowballing...?

thriftymoo

Hi

I've heard a lot of people refer to snowballing.... how exactly does it work and how do i work it out?

ive tried searching for info and cant find it on here!

postingalwaysposting

Basically its an online calculater that will show you the best way to pay your debts off. Be it the order/amount you pay off per month with regards to the interest. It can be found here.

splishsplash

lysasparkles wrote: »

Hi

I've heard a lot of people refer to snowballing.... how exactly does it work and how do i work it out?

ive tried searching for info and cant find it on here!

This link should help.

thriftymoo

thank u!! im probably gonna get a shock now arent i?

postingalwaysposting

lysasparkles wrote: »

thank u!! im probably gonna get a shock now arent i?

Well it does calculate your approx debt free date so maybe. But the best thing about that website is you can work out the best repayment scheme. Makes the money you are pay off the debt work much harder. Especially if you can over pay some months.

immoral_angeluk

Snowballing is fab. Also if you fancy a bit of an eye opener but in the details as if you were making just minimum payments as see how long it'd take you to pay off the debt then!!

thriftymoo

does anyone know how i can work out what interest i pay on a loan? i know how much it was when i started and how much i pay per month..

ie. took out loan for 9500 n pay £180 for 60 months
loan for 6500 n pay £151 for 48 months

parents took out loan and theyre away and i cant find the paperwork :S

Gemmzie

First one is about 5.7% (equals £180.02 a month so pretty close)

Second one is about 5.5% (equals £151.17 a month)

Pretty low for loans

thriftymoo

Gemmzie wrote: »

First one is about 5.7% (equals £180.02 a month so pretty close)

Second one is about 5.5% (equals £151.17 a month)

Pretty low for loans

thank u u did that quicker than i could just tried to calculate it and came out roughly the same! will stick with yours coz theyre slightly higher and get mum to check when she's home. both loans are about 2 years old so theyre quite low compared to what they would be now i think - plus they're in my dads name, i couldnt get that rate lol!

thriftymoo

just calculated it.. i thought my debt free date was aug 2012 turns out if i snowball it and pay my normal amount its april 2011 and if i pay off a few extra quid i have spare from my pay a month it'll be dec 2010 wooo!!!!

Gemmzie

The wonders of the snowball