Snowballing working but worried about how long it's gonna take us!

[immie675]

So we have managed to snowball a few smaller debts and pay them off, now we have the big ones- £2900 on one credit card and £5000 on another. Both now paying interest on it.

We are paying off £200 on one and min payment on the other.

I don't know if there is a better way to do it, as without the interest it would be coming down a lot faster.

Any suggestions?

Sell anything you can, take any opportunities for more work. The solution here is income - you are in a big hole and need a big shovel.

As interest is often calculated daily, the sooner you can put money towards the debt the better. Make sure you keep your emergency fund though, as you don't want an unexpected event to set you back.

Debt Payoff Planner app can show you when you will pay off the debt... and how £20 extra a month makes a difference. It can be a long slog but it is worth the effort.

Get another interest free deal?

Pay more, faster.

Pay more off the one with higher interest.

Pay as much as you can. The earlier the better.

Can you live on one wage this month and pay the other one towards the debt? (Most people instinctively say no, but think about it.)

Can you have a really tight next few months, spend nothing you don't absolutely have to, and pay everything you can towards these debts?

What can wait? What can you do without if it's only for a few months?

Try writing it down.

What's your £ income for the next three months?

What is the £ unavoidable spend?

How much is left?

More than you're paying off these cards?

P.S. Most people's "unavoidable spend" can also be reduced.

Thank you,

So I work part time, and can't up hours one because of childcare and my eldest going to school and no after school club and secondly husband does shifts (emergency services)

I am trying to reduce our monthly spend, I also am trying matched betting to gain some more money I hope!

Transfer as much as possible to another interest free deal, that's your number 1 priority.

Look on Moneysavingexpert.com for details of what's available.

Pay as much off the card with the highest interest rate and slightly above the minimum on the other as this removes the minimum payment marker from your account, so makes your repayment record look better.

If you apply for a deal and get rejected, try for 1 or 2 more as you have little to lose. If you have no luck probably best leave it for 6 months, paying off as much as you can then try again.

You might also have cards already that offer deals for existing customers so that could be another option.

Hey OP, congratulation on what you’ve paid off so far - great work! The snowballing method is great for the early payments, you clear away the annoying little ones, and feel a big sense of accomplishment at each one you finish. Now you are on the last 2 big ones, the hard work kind of starts again.

Dave Ramsey says smart people often have the hardest time at this point, as they try and ‘think’ their way out, or think of a better plan. When what you need to do is put your head down and do it! Yes, it might take awhile, but so did running up the debt. There is a lesson to be learnt in the payoff time - how to budget, how to live on cash/what you actually earn, not credit.

Put your head down and keep working hard at it. Every payment will make the interest less, every extra dollar will get you there faster. Just put your head down and settle in for the marathon - it was never going to be a sprint.

But you WILL get there! And imagine the first pay you get where NOTHING goes on debt repayment. Nothing on interest. Where all your money is yours. It’ll be fantastic. Push ahead!

I work part time at a pub, I only work when it fits in with me and cover shifts that others want off.

I used to do agency work for the same reason

just picking up one or two shifts a week of 3/4 hours soon adds up to
£120 a month

with staffing at an all time low places are having to take what the can

What are the interest rates on the cards?

Check for 0% deals here:
www.moneysavingexpert.com/eligibility/credit-cards/search/