Thursday, 16 October 2008

Making Some Changes To My Snowball

I spent some time last night looking at my remaining debts (who am I kidding I look at them most nights), and how I can reduce the total minimum payment I have to pay each month and reduce the monthly interest bills overall.

So what I’m planing to do is:

  • Apply for a balance transfer of Card 3 (15.99%) to Card 4 (10.22%)
  • Close Card 3
  • Confirm $5,000 balance transfer of Card 2 (15.99%) onto new Card 8 (6.99% for life of balance transfers, $5,000 limit)
  • Apply for a balance transfer of Card 1 (11.79%) to Card 2 (11.79%)
  • Close Card 1
  • Increase monthly payment on loan (14.89%) to $1,000 a month (was $700)

I’m still snowballing, but if the minimum payment is reduced then there’s more of my debt payment amount to actually snowball/flake? Confused yet?

I've worked out this will save me almost $1,000 in interest if I can manage all the changes with the various companies, and still allow me to save enough for my UK trip in May next year, plus get the $5,000 I need to put into my First Home Savers Account before June 30 2009 (once I open the account of course).

Am I crazy here, or does this make some form of sense?

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  1. it makes great sense, I would go for it.

  2. Have you considered the balance transfer fees? Usually they're about 3%

  3. Thanks SavingDiva, I did check and the banks here don't charge transfer fees, so I'm in luck!

  4. It makes a lot of sense!
    Good Luck!