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Archive: Jun 2019

  1. The credit card debt snowball method

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    The credit card debt snowball method

    The credit card debt snowball method Bright Day Finance

    If you’re struggling to pay off credit card debt, you are not alone. 

    The average recorded debt where people looked for help was €47,000 per household.

    Credit cards have very high Interest so if you are just paying the minimum payment every month then it’s going to take a long time to pay off the debt on the card.

    One Method to clear credit card debt faster is called the Snowball Method. 

    This works by prioritising accounts with smaller balances, rather than those with higher interest rates. 

    Paying down the account with the smallest balance tends to have the most powerful effect on your sense of progress as you feel like you are getting somewhere when you can see the debts being paid off one by one.



    You need to make sure you can afford to pay more than the minimum payments for this method to work as you don’t want to fall behind with your household bills and also need enough money for food and essentials.

    Sit down and write down all your monthly income and expenditure items. Take your income and minus off all your expenditure items/expenses, this figure is the monthly amount to have to pay you my debts off.

    So if you have extra money left over from this figure after you have paid the minimum payments to your credit card then you will pay this extra amount to the credit card with the smallest balance.

    For example, if it’s an extra €100 a month then that will make a big difference to paying your smallest credit card off as you will be paying off a lot more than the interest every month. So if the minimum payment is €80 and the Interest is €50 and you pay €180 a month you will be clearing €130 off the credit card and also the interest will be getting lower every month.

    When you have paid this card off you will be able to then put €180 extra towards your second smallest card and you then work your way through the credit cards paying the extra amount you have to the next smallest card every month, so as you pay each card off the extra amount you have will be increasing also. 

    This method is really effective as you can see the debt is being paid off and also you will be able to work out when you are going to be debt free! 

    This will push you to keep paying off your credit cards as you will feel a sense of achievement after each card is paid off. 

    This method will only work if you stop spending on the cards so cut up all your credit cards and don’t use them anymore. 

    Some other people prioritise the the credit card which has the highest interest and pay as much as they can afford to the largest balance first. This method will reduce down the monthly interest amount and you will be bringing down the balance faster but you won’t see the credit cards paid off as quickly this way. 

    If the amount you have left over after your expenses/expenditure items are taken away from your income is not enough to cover the minimum payments on your credit cards then it would be best for you to receive Free Debt advice from a debt advisor as it maybe the case that you are eligible for a solution to help you clear your credit cards with affordable monthly payments and you maybe eligible to have some or all of your debt written off. 

    We can arrange a free phone call for you with a debt advisor who will be able to offer you Free Confidential Debt Advice. 

    If you are struggling to pay your debts please give us a call on 01 4434125 as we can arrange a Free appointment with a Debt Advisor or Personal Insolvency Practitioner who will offer you Free Debt Advice.

    R.McGonnell 8th June 2019

    The credit card debt snowball method Bright Day Finance

    Rory McGonnell

    Founder of Bright Day Finance

    Personal finance expert and blogger who has an interest in money saving ideas.

    Tags: Free Debt Advice Ireland, Free Debt Help Ireland, Debt Advice Ireland, Free Debt Advice, Free Debt Help, Credit Card Debt, Credit Card Debt Help, Debt Advisor.



    Laura F. from Athlone

    “Bright Day Finance helped me so much, with Rory and his teams help I am now able to manage my debt, and it’s like a weight has been lifted. They even found out I was overpaying on a loan, to which I’m delighted to say Rory sorted for me and I ended up only owing the bank half the amount  so even with just that debt I have saved over a thousand euro.

    I can’t praise them enough, it was the best phone call I have ever made, I was in a situation where I was getting deeper and deeper into debt, but was too embarrassed to ask for help. but with Rory and his team they are like the friend you can talk to, they don’t judge! they are here to help you. So if you are in the same situation as I was make that call, it will be the best decision you will ever make”

    Chris L. from Galway

    “A special thanks to you all and especially to you Rory for being there for me in what was a very stressful time in my life. My debts were spiralling out of control as I struggled to meet the minimum repayments. Since contacting you Rory I have never looked back. You listened and in no time at all I began to feel so much better in myself.

    You contacted my creditors and to my amazement they all decided to freeze the interest and charges on my loans. You carefully arranged a debt management plan that works for me and I have one direct debit a month to Bright Day Finance who then pays my seven creditors. It’s been over a year now and everyone is happy. Rory and the team have given me financial freedom and I have a life again”

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