Snowballing debts!

One of the best way to get rid of debts really quickly is to overpay every month and that's what I've been doing. I've given up everything but breathing to do this but it's working and today I reaped the benefits of this. (Check out the link to a snowball calculator which shows how much less interest you will pay if you pay off your debts sooner. )

I 'snowball' debt payments, which mean I pay back as much as I can and as soon as one debt is paid, I snowball the next debt by moving the payment from the card/loan I have paid off onto the other debts so I never reduce the amout I pay each month and I keep over paying and eventually I clear the debts sooner, with less interest. (I pay £1000 in all a month towards: loans, cards and car payments)

I've previously tried to acquire a 0% transfer credit cards to move my debts into and had been turned down until I got a Santander card, which I've now almost paid off. I pay 83% more than the minimum payment! I am doing the same with my existing Halifax balance and I overpay that by 66%! I've been offered another balance transfer deal from Santander, which means I can stop paying the 17.5% to Halifax. I can pay off my debts even quicker.

I reach a milestone on the next pay day as that is when I am paid for the overtime I have done since November and will use that lump sum to pay off half the balance of my Halifax credit card. The existing balance will be paid off, with the interest free option by October this year.

Everytime I hear the little voices that tell me to keep a bit of the money I earn and treat myself; I make sure I ignore them and do without everything I can possibly live without and pay back every last penny as quickly as possible. The result of the privations will mean I will have no credit card debt in 6 months time!! I will then just snowball the payments in the direction of my bank loan and car payments! It's amazing how a snowballing technique soon turns into an avalanche and I know I will be completely debt free by 2012.