Personal debt - snowball technique

[Rooter]

So it neither big nor clever, but i lived a champagne lifestyle on a lemonade budget for most of my twenties, racked up an embarrassing amount of debt.

Remember reading on moneysavingexpert about a technique called snowballing. Basically you add up all the money you have each month to spend on repaying debt and it organises for you the quickest most efficient way of paying it back.

Anyone else done it? I am under 6 months away from paying back the last thing, it has been a struggle at times and going through 2 redundancies hadn't made it any easier, but I am almost there!

If anyone wants a copy of the spreadsheet i use, let me know, its dead simple when you look at it on paper, but not something you may think of..

Don't want to talk numbers as it crude, but lets say at one point, i owed a LOT of money to credit cards, store cards, loans etc.. but without using this spreadsheet, i would have been paying it off for many more years!

 

[woody69]

It's a fairly simple method isn't it? You just pay as much as you can to your most expensive debt and cover the minimums on the rest and when that 1st debt is paid, add it to the 2nd most expensive and pay as much as you can again and keep going until all the debt is paid. Definitely a sensible approach

 

[Rooter]

It's a fairly simple method isn't it? You just pay as much as you can to your most expensive debt and cover the minimums on the rest and when that 1st debt is paid, add it to the 2nd most expensive and pay as much as you can again and keep going until all the debt is paid. Definitely a sensible approach

Very simple indeed, but i couldn't see that solution without it being in excel if you know what i mean! when you see it in black and white, you get clarity. Well i did!

 

[SwingsitlikeHogan]

Credit Card tart me - just looking for the best 0% deal at the moment to do a balance transfer.

 

[Rooter]

Credit Card tart me - just looking for the best 0% deal at the moment to do a balance transfer.

0% may not be the best option, depends how much you have on it and how much you overpay. Some deals on lifetime balance may be better, but it is dependent on each case.

 

[woody69]

Credit Card tart me - just looking for the best 0% deal at the moment to do a balance transfer.

I remember the good old days when you could just transfer the balances from 1 card to another with no charges. Now they charge you that ridiculous 1.5% handling or whatever and suddenly you're paying 50 odd quid for an electronic transfer.

 

[Rooter]

I remember the good old days when you could just transfer the balances from 1 card to another with no charges. Now they charge you that ridiculous 1.5% handling or whatever and suddenly you're paying 50 odd quid for an electronic transfer.

1.5%?? when was the last time you did it! most are circa 2.9% these days!! hence its often worth sitting down and working it out...

 

[Rumpokid]

Well done Rooter on nearly getting there.Doing the right thing..Don't know if i am lucky,but usually have a 0% card for purchases,then pay off at end of term,and take out a new one..Been through rudundo..not nice.so good luck

 

[JustOne]

Can anyone transfer their card to 0% or are there limitations? (my Dad is 76)

 

[Rooter]

Can anyone transfer their card to 0% or are there limitations? (my Dad is 76)

would check the card issuers t&cs first. every time you apply for something it goes against your credit score. Check out money supermarket or similar for recommendations for credit cards for pensioners.

Also check out that he is getting a free TV licence etc and getting whatever benefits he is due.paid tax all his life (i assume) so only getting back what is rightfully his IMHO!

 

[JustOne]

Rooter... PM me your (huge) figures and I'd be interested to know some maths... eg how long has it taken you etc etc. Was looking at my Dads finances recently and he may be better off dead

 

[Rooter]

lol you dont wanna see the numbers, but will send you the spreadsheet with some made up ones!

 

[Rooter]

JO, PM me your email address. cant send you an excel sheet through PM..

 

[vkurup]

Good work roots.. send me a copy too.

 

[Rooter]

Good work roots.. send me a copy too.

PM me you email!

 

[Rooter]

in fact, just looked at it and it has the url from where i got it from!!

Feel free to download it, If anyone has any questions do drop me a PM, there are a few tricks you can apply like if you know in april you get a £1000 bonus, you can add this etc.

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

 

[vkurup]

in fact, just looked at it and it has the url from where i got it from!!

Feel free to download it, If anyone has any questions do drop me a PM, there are a few tricks you can apply like if you know in april you get a £1000 bonus, you can add this etc.

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Looks like someone did their target this quarter.

 

[Rooter]

Looks like someone did their target this quarter.

£1000 bonus? i wish!