Changing for good!

I have made a decision about where to relocate extra money once CC2 has been paid off.
My plan is to increase my payment to CC3 to £50 per month. It is currently £25pm, so I will be allocating the £15 from CC2 and adding in another £10 from my disposable income, so that a decent amount is coming off each month.
I will then use the extra income from surveys etc to pay off the MyJar loan quicker, as you can make payments as and when to reduce the balance. The interest accrues throughout the loan period so I will save money on interest if I make extra payments to it.

Once CC3 is cleared, it will be used for petrol and paid in full each month, and the £50 payment will be allocated to CC1 which will then be paid at £110 per month

Working_Mum wrote: »

What you are describing is "snowballing" your debt payments - Dave Ramsey advocates this and it is hugely motivational to see your debts going down!

I can see why it's motivational! I'm excited to clear CC2 and increase the direct debit for CC3

NelliePie wrote: »

There is a snowballing calculator (search the forum for the link, sorry I don't have it) Which you can use to see the effects of the snowballing and the best way to maximise the effect

I've had a quick go and thankfully the time frame is the same if I use the 100% snowball method. I don't know if I would trust myself to pay the larger amount to the snowballing debt manually so thankfully I can continue snowballing this way and still be debt free in the same amount of time

Which means I'm also at my 10% I appear to have gained an extra £5 paid off somewhere in my sig but who knows... I'll work it out at some point :rotfl: