We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Snowballing - stuck at APR/AER!
Claw_back_money
Posts: 848 Forumite
Hi
Following my lightbulb moment at the end of December I've been trying to get to grips with our money situation. I have been on the excellent snowballing site and its really mind-blowing stuff, I wish it was part of the GCSE maths syllabus so we all got taught about interest rates and consolidation at school!
I am not sure that I am doing it very accurately as I don't know how to get the AER of our two large overdrafts converted into APR.
From my initial calculations the credit cards are not the monster of the piece, it is in fact the overdrafts, and these should go first.
Debts are:
HSBC o/d - £1,397 at 18.8% AER (limit 1,500)
HSBC flexiloan - £306 at 16.8% APR (limit 500)
HSBC visa - £7,598 at 16.9% APR (limit 10K)
Lloyds o/d - £3,472 at 17.9% AER (joint account with DH, limit 3,900)
Goldfish cc - £2,003 at 4.9% APR (this is a brand new card, the plan was to transfer HSBC visa onto it, but this is all they would take)
I'd be really grateful for some help with this.
Many thanks
Cbm
Following my lightbulb moment at the end of December I've been trying to get to grips with our money situation. I have been on the excellent snowballing site and its really mind-blowing stuff, I wish it was part of the GCSE maths syllabus so we all got taught about interest rates and consolidation at school!
I am not sure that I am doing it very accurately as I don't know how to get the AER of our two large overdrafts converted into APR.
From my initial calculations the credit cards are not the monster of the piece, it is in fact the overdrafts, and these should go first.
Debts are:
HSBC o/d - £1,397 at 18.8% AER (limit 1,500)
HSBC flexiloan - £306 at 16.8% APR (limit 500)
HSBC visa - £7,598 at 16.9% APR (limit 10K)
Lloyds o/d - £3,472 at 17.9% AER (joint account with DH, limit 3,900)
Goldfish cc - £2,003 at 4.9% APR (this is a brand new card, the plan was to transfer HSBC visa onto it, but this is all they would take)
I'd be really grateful for some help with this.
Many thanks
Cbm
Jan 08: Debt £15,211 :eek: Debt cleared April 30th 2010 
Proud to have dealt with my debt! Currently building up savings.:T
With enormous thanks to everyone on the forums and:money:
0
Comments
-
i'm no help with the technical maths bit, but bump...
Stashbuster - 2014 98/100 - 2015 175/200 - 2016 501 / 500 2017 - 200 / 500 2018 3 / 500
:T:T0 -
:money: bump!!!BSCno.87The only stupid question is an unasked oneLoving life as a Kernow Hippy0
-
AER is usually quoted for savings rather than debts (debts are usaully quoted as APR or EAR ).
However both compound the simple interest rates so I suggest you treat them as meaning the same thing.0 -
Thanks for your help. I've double checked, Clapton, and you're right - its EAR not AER. Can I treat that as the same as APR too??
CBMJan 08: Debt £15,211 :eek: Debt cleared April 30th 2010
Proud to have dealt with my debt! Currently building up savings.:TWith enormous thanks to everyone on the forums and:money:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards