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Advice on Paying off Credit Cards

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yofico
Established Member

Re: Advice on Paying off Credit Cards


@user5387 wrote:

@yofico wrote:

@user5387 wrote:

Welcome to the forums!

 

Have you considered a consolidation loan from a local CU or Lending Club?

 


Would I qualify for a consolidation loan with a credit score of 646? I never thought about those options. Do they give me a check and I pay off all the credit cards and then pay monthly on the loan?


Yes, you would move revolving debt (CCs) to installment debt (consolidation loan).  You'd receive a check, and then be obligated to pay $X a month for Y months.

 

These two kinds of debt are scored differently, and I expect you'd see a significant score boost as a result.

 

You could try some local CUs and see what they say, or try Lending Club.

 


I'm researching it as I speak, thanks. Have you ever tried Lending club? Is it legit? I may just pay a visit to a CU on my day off Thursday and put everything out on the table.

Equifax 663
Discover IT $1,750
BankAmericard Visa Card $3,000
Blue Cash Everyday AMEX $3,000
Capital One Platinum Mastercard $3,000
Message 11 of 29
yofico
Established Member

Re: Advice on Paying off Credit Cards


@chrisw1968uk wrote:

So you are $23 away from maxing out 4 cards? - I would personally pay 30% of your available funds to the highest rate cards and the other 2 cards get 20% each, SD the cards until they are carrying low balances - i'm wondering if the banks may balance chase you though - good luck Smiley Wink 


I knew someone was going to hit me where it hurts the most Smiley Embarassed . I need to feel ashamed. LIke I said, I'm not out buying clothes or electronics. It is shifting money from one card to the other for travel expenses and then waiting on a stupid reimbursement check. It is stressful, trust me. Now, this debt isn't all due to work stuff. Yes, at one point, I was naive and young. Now I am taking responsibility and will have a whole new outlook once I am debt free. Thanks for the response. Yea, I haven't had the banks chase my balances. I thnk they like it because I pay my bills on time despite the high balances.

Equifax 663
Discover IT $1,750
BankAmericard Visa Card $3,000
Blue Cash Everyday AMEX $3,000
Capital One Platinum Mastercard $3,000
Message 12 of 29
user5387
Valued Contributor

Re: Advice on Paying off Credit Cards


@yofico wrote:

@user5387 wrote:

@yofico wrote:

@user5387 wrote:

Welcome to the forums!

 

Have you considered a consolidation loan from a local CU or Lending Club?

 


Would I qualify for a consolidation loan with a credit score of 646? I never thought about those options. Do they give me a check and I pay off all the credit cards and then pay monthly on the loan?


Yes, you would move revolving debt (CCs) to installment debt (consolidation loan).  You'd receive a check, and then be obligated to pay $X a month for Y months.

 

These two kinds of debt are scored differently, and I expect you'd see a significant score boost as a result.

 

You could try some local CUs and see what they say, or try Lending Club.

 


I'm researching it as I speak, thanks. Have you ever tried Lending club? Is it legit? I may just pay a visit to a CU on my day off Thursday and put everything out on the table.


Lending Club is legit, but you might find that they quote high APRs, and I'd try some CUs first.

 

Here are a couple of places to find CUs:

 

   http://www.creditcardconnection.org

 

   http://www.depositaccounts.com/blog/the-big-list-of-credit-unions-open-to-anyone.html

 

Message 13 of 29
fot1
Established Contributor

Re: Advice on Paying off Credit Cards

You can chack lending club and prosper.. They will do a sp and show you what you are approved for.. Just pay attention to the Fees and Apr.... Personally I like the snow ball payment  method..

Too many to list..
Message 14 of 29
yofico
Established Member

Re: Advice on Paying off Credit Cards


@yofico wrote:

Here is the damage:

 

Capital One (22%) 2999/3000

Discover IT (19%) 1745/1750

BankAmeriCard Visa (14.24%) 2984/3000

AMEX Blue Cash Everyday (13%) 2999/3000

 

I have 1500 each month to put towards my credit card debt. My only problem is I keep putting travel expenses on them and my job takes 1.5 months to reimburse me which sucks. I really should be paying cash, but I'm in a tough situation. 

 

Goals: Pay off debt ASAP! My credit score is 646 (definitely because these cards are maxed out!); however, I am not looking to buy a car, house, etc. any time soon!! I only plan to move out my apartment in 6 months and hope to have ths debt gone by then. So credit score will bounce back after this debt is gone.

 

How should I approach this debt?

 

1. Pay minimum on Discover, Amex, and Visa and put what's rest of the 1500 towards the Capital one (22%)?

2. Spread out my 1500 evenly to chop the UTI down?

3. Send my cards to my parents to fight temptation and use debit card/cash for travel only?

 

Thanks in advance for the advice.

 

 


I've decided to pay off the Disover first. I can have that paid off by the end of July.

 

I will then pay the minimum on the VISA and AMEX while I put the rest toward the Mastercard debt. I can have that paid off by September.

 

I will then split my VISA and AMEX payments equally until they are paid off.  Goal: December

 

I am fortunate to have enought income to live comfortably (pay cell phone, rent, food, cable, etc.) + approx. 1500/ month to pay off debt.

 

As for my trips, I will strictly use cash. Once they reimburse me, I will put that towards my cards so I can reach my goals quicker.

 

How does this sound? It seems easy in concept. I am DETERMINED. Thank you to EVERYONE that replied. It means a lot to me.

Equifax 663
Discover IT $1,750
BankAmericard Visa Card $3,000
Blue Cash Everyday AMEX $3,000
Capital One Platinum Mastercard $3,000
Message 15 of 29
notfancy
Valued Contributor

Re: Advice on Paying off Credit Cards


@yofico wrote:

Here is the damage:

 

Capital One (22%) 2999/3000

Discover IT (19%) 1745/1750

BankAmeriCard Visa (14.24%) 2984/3000

AMEX Blue Cash Everyday (13%) 2999/3000

 

I have 1500 each month to put towards my credit card debt. My only problem is I keep putting travel expenses on them and my job takes 1.5 months to reimburse me which sucks. I really should be paying cash, but I'm in a tough situation. 

 

Goals: Pay off debt ASAP! My credit score is 646 (definitely because these cards are maxed out!); however, I am not looking to buy a car, house, etc. any time soon!! I only plan to move out my apartment in 6 months and hope to have ths debt gone by then. So credit score will bounce back after this debt is gone.

 

How should I approach this debt?

 

1. Pay minimum on Discover, Amex, and Visa and put what's rest of the 1500 towards the Capital one (22%)?

2. Spread out my 1500 evenly to chop the UTI down?

3. Send my cards to my parents to fight temptation and use debit card/cash for travel only?

 

Thanks in advance for the advice.

 

 


How old are these accounts? If old enough, once you pay them off, you could ask for credit limit increases so that you have more spending power on them with out it killing your UTL. Though that might not work if you might have a hard time keeping the balances reasonable.  My approach is slightly different. I would pay them down to 70% first, then pay them completely off one at a time. That way you're not showing as maxed out on every card.

 

Capital One (22%) 2999/3000= 100% UTL Pay down to $2100 ($900 payment)- Or pay to 75% ($750 payment)

Discover IT (19%) 1745/1750= 100% UTL Pay down to $1225 ($525 payment)- or pay to 75% ($437 payment)

BankAmeriCard Visa (14.24%) 2984/3000 = 99% UTL  Pay down to $2100 ($900 payment)- Or pay to 75% ($750 payment)

AMEX Blue Cash Everyday (13%) 2999/3000= 100% UTL Pay down to $2100 ($900 payment)- Or pay to 75% ($750 payment)

 

Do you have any additional money you can throw at these out side the $1500 reimbursement check? I'm concerned that they will start balance chasing you for carrying such large balances month to month. Creditors hate that. Generally they don't like balances over 30% very much, and anything over 80% is considered maxed out to them.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 16 of 29
yofico
Established Member

Re: Advice on Paying off Credit Cards


@notfancy wrote:

@yofico wrote:

Here is the damage:

 

Capital One (22%) 2999/3000

Discover IT (19%) 1745/1750

BankAmeriCard Visa (14.24%) 2984/3000

AMEX Blue Cash Everyday (13%) 2999/3000

 

I have 1500 each month to put towards my credit card debt. My only problem is I keep putting travel expenses on them and my job takes 1.5 months to reimburse me which sucks. I really should be paying cash, but I'm in a tough situation. 

 

Goals: Pay off debt ASAP! My credit score is 646 (definitely because these cards are maxed out!); however, I am not looking to buy a car, house, etc. any time soon!! I only plan to move out my apartment in 6 months and hope to have ths debt gone by then. So credit score will bounce back after this debt is gone.

 

How should I approach this debt?

 

1. Pay minimum on Discover, Amex, and Visa and put what's rest of the 1500 towards the Capital one (22%)?

2. Spread out my 1500 evenly to chop the UTI down?

3. Send my cards to my parents to fight temptation and use debit card/cash for travel only?

 

Thanks in advance for the advice.

 

 


How old are these accounts? If old enough, once you pay them off, you could ask for credit limit increases so that you have more spending power on them with out it killing your UTL. Though that might not work if you might have a hard time keeping the balances reasonable.  My approach is slightly different. I would pay them down to 70% first, then pay them completely off one at a time. That way you're not showing as maxed out on every card.

 

Capital One (22%) 2999/3000= 100% UTL Pay down to $2100 ($900 payment)- Or pay to 75% ($750 payment)

Discover IT (19%) 1745/1750= 100% UTL Pay down to $1225 ($525 payment)- or pay to 75% ($437 payment)

BankAmeriCard Visa (14.24%) 2984/3000 = 99% UTL  Pay down to $2100 ($900 payment)- Or pay to 75% ($750 payment)

AMEX Blue Cash Everyday (13%) 2999/3000= 100% UTL Pay down to $2100 ($900 payment)- Or pay to 75% ($750 payment)

 

Do you have any additional money you can throw at these out side the $1500 reimbursement check? I'm concerned that they will start balance chasing you for carrying such large balances month to month. Creditors hate that. Generally they don't like balances over 30% very much, and anything over 80% is considered maxed out to them.


Wow, thank you for the great response. Smiley Happy

 

I like your pay off plan better. I think it is wise to pay all of them down a bit to get out the RED, although I'd still be in the RED, ha. I'm going to re-do my budget with your math in mind. Thank you!

 

These accounts are around 2-4 years old. The newest is the Mastercard (2 years old).

 

The 1500 is not reimbursement checks only...I am able to budget this out of my expenses every month. I my have a couple hundred extra each month, but not too much more. If I am disciplined and have no unexpected surprises, I plan to be out of debt by December. I will keep everyone posted.

Equifax 663
Discover IT $1,750
BankAmericard Visa Card $3,000
Blue Cash Everyday AMEX $3,000
Capital One Platinum Mastercard $3,000
Message 17 of 29
user5387
Valued Contributor

Re: Advice on Paying off Credit Cards

Being maxed out both hurts your score and increases AA risk.

 

So if you apply funds to reduce the utilization percentages uniformly, then you start to improve these issues.

 

Message 18 of 29
StriveToProsper
Regular Contributor

Re: Advice on Paying off Credit Cards

You should also look into a personal loan from a CU and see if they'll be able to help you out. 

Message 19 of 29
takeshi74
Senior Contributor

Re: Advice on Paying off Credit Cards

I'd suggest getting them all down to where they're not all maxed and then work on getting utilization down in steps on all of them.  One $1,500 payment can get them all under 90%.

 


@yofico wrote:

Since paying them off, I  have not touched my credit line, but I am scared that AMEX would chase my balance.


It's not just AmEx.  You don't want any of them balance chasing you so you need to get utilization down on all ASAP.

 


@yofico wrote:
I want to get rid of this debt once and for all.

Sounds like it's going to be tricky with the job-related travel expenses.

 


@chrisw1968uk wrote:

So you are $23 away from maxing out 4 cards?


They're all already maxed for scoring purposes.

Message 20 of 29
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