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Credit Card Debt- Please Help!!- UPDATE!

tag
newyearnewcredit
Contributor

Re: Credit Card Debt- Please Help!!- UPDATE!

@Caleb

Not a bad idea as well, but turning in my vehicle wouldn't look too nice on my credit report either unfortunately

(714)EQ (712)EX (722)TU
AMEX Plat NPSL/ NFCU CashRewards $17300/Discover It $3000/AMEX Delta Gold $1000/Americas First Federal Credit Union $1000/Capital One Quicksilver $13500/Macys Gold $7000/Belk $1800/Bloomingdales $1500/ Amazon $2370/Cheveron $1800/Banana Republic $1800/Walmart MasterCard $1800/ Bancorp South $$3000/Regions $3000
Message 11 of 13
K-in-Boston
Credit Mentor

Re: Credit Card Debt- Please Help!!- UPDATE!

Kudos on your progress so far!  I know it's not easy.  I would suggest paying off the Macy's and then getting the 4 remaining cards under 89% utilization immediately, and then throwing anything left at the CapOne.  I wouldn't get rid of the CapOne until your utilization is way down.  Your scores aren't bad as is, so they should drastically shoot up about a month after you get those maxed out cards down under 89%.  Utilization kills scores.  After that, I would see if you prequalify for balance transfer cards - getting that debt down to 0% of at least very low single digits will help repayment dramatically as long as you don't add additional balances on.

 

As for the car, what are you paying for an APR?  I would look into refinancing it through Navy or PenFed over a longer period.  Seeing that you paid a very high amount over 4 years isn't going to do the magic on a lease.  Your scores and DTI ratio are going to determine you qualifying for a lease.  If you can lower your payments by stretching out a low APR loan to 5-6 years that will free up cash to throw at the credit card balances.  You can always trade in the vehicle with payments left; just make sure you have equity in it and don't owe more than it's worth.

Message 12 of 13
Anonymous
Not applicable

Re: Credit Card Debt- Please Help!!- UPDATE!

Congratulations! It looks like Macy's has the highest APR pay it off. Then use the normal monthly payment for Macy's and add it to the next highest APR balance payment and keep going from there.
Message 13 of 13
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