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Credit Card debt down nearly $20k

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MyLoFICO
Valued Contributor

Re: Credit Card debt down nearly $20k

Holy crap. If I had that much in CC debt I would have a cardiac event. Good luck either way though. 


Experian: 677 (28) | TransUnion: 697 (27) | Equifax: 684 (6)
Gardening as of: 1-23-2018
Updated 1-25-18
Message 21 of 29
tcbofade
Super Contributor

Re: Credit Card debt down nearly $20k


@MyLoFICO wrote:

Holy crap. If I had that much in CC debt I would have a cardiac event. Good luck either way though. 


LOL!  Wifey has more...

 

We just rebuilt a house on credit cards. 

 

...because we're brilliant like that....

 

 

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 22 of 29
MyLoFICO
Valued Contributor

Re: Credit Card debt down nearly $20k


@tcbofade wrote:

@MyLoFICO wrote:

Holy crap. If I had that much in CC debt I would have a cardiac event. Good luck either way though. 


LOL!  Wifey has more...

 

We just rebuilt a house on credit cards. 

 

...because we're brilliant like that....

 

 


Oh I got no room to talk CH7 fell off in 2001. I know about debt for sure. I hope things work out for you both. 


Experian: 677 (28) | TransUnion: 697 (27) | Equifax: 684 (6)
Gardening as of: 1-23-2018
Updated 1-25-18
Message 23 of 29
bdhu2001
Valued Contributor

Re: Credit Card debt down nearly $20k


@tcbofade wrote:

@noobody wrote:

@tcbofade wrote:

Thanks both.

 

No, the CC balances are not at zero percent.  I'm doing the math right now, and if I took a $10k loan and paid off 13 CC accounts, it would save me nearly $100 per month.

 

It is also a four year fixed loan, instead of a never ending revolving line.

 

Hmmmm.

I do not think it saves you any money, just $100 less towards principle and interest

I confess that I haven't done the math... yet. 

 

It would save us 90 odd dollars a month in cash flow...over the life of a four year loan vs open ended credit cards?  I'll bet it will save us quite a bit, but as I said, I haven't done the math yet.


Lower payments is not saving money.  How quick would you free up funds with the snowball system and paying off the lowest balance first.  Once you pay off a card, you no longer have to make payments so your open ended credit card analogy doesn't fit.  If it means that you have access to the card and can charge it back up, the same thing applies to transferring the balance to an installment loan.

 

Please advise us of how long it would take you to free up $50 then $90 if you use the snowball method.  Based on your statement, the interest rate with the installment loan is higher than your cards.  Thus, it's unlikely that you'd pay of the bills faster and you appear to be on pace to payoff without the installment.

 

Nearly 20K.  Way to go!

 

 

Original Mortgage maturity Sept 2044; Refi maturity Dec 2030
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Current Score: EX 849 EQ 835 TU 843
Goal Score: 850


Take the myFICO Fitness Challenge
Message 24 of 29
tcbofade
Super Contributor

Re: Credit Card debt down nearly $20k


@bdhu2001 wrote:

@tcbofade wrote:

@noobody wrote:

@tcbofade wrote:

Thanks both.

 

No, the CC balances are not at zero percent.  I'm doing the math right now, and if I took a $10k loan and paid off 13 CC accounts, it would save me nearly $100 per month.

 

It is also a four year fixed loan, instead of a never ending revolving line.

 

Hmmmm.

I do not think it saves you any money, just $100 less towards principle and interest

I confess that I haven't done the math... yet. 

 

It would save us 90 odd dollars a month in cash flow...over the life of a four year loan vs open ended credit cards?  I'll bet it will save us quite a bit, but as I said, I haven't done the math yet.


Lower payments is not saving money.  How quick would you free up funds with the snowball system and paying off the lowest balance first.  Once you pay off a card, you no longer have to make payments so your open ended credit card analogy doesn't fit.  If it means that you have access to the card and can charge it back up, the same thing applies to transferring the balance to an installment loan.

 

Please advise us of how long it would take you to free up $50 then $90 if you use the snowball method.  Based on your statement, the interest rate with the installment loan is higher than your cards.  Thus, it's unlikely that you'd pay of the bills faster and you appear to be on pace to payoff without the installment.

 

Nearly 20K.  Way to go!

 

 


That is an excellent point... thank you.  Smiley Happy

 

Gimme a while, I'll go find out. 

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 25 of 29
tcbofade
Super Contributor

Re: Credit Card debt down nearly $20k

It would take a year to see the first $25, and about four more months to see the next $25.  (Presumably, about two more months to see the next $27)

 

Still fine tuning my model, but in terms of actual dollars, it's close to a wash...

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 26 of 29
NRB525
Super Contributor

Re: Credit Card debt down nearly $20k


@tcbofade wrote:

It would take a year to see the first $25, and about four more months to see the next $25.  (Presumably, about two more months to see the next $27)

 

Still fine tuning my model, but in terms of actual dollars, it's close to a wash...


Doubtful that it's just a wash. If your interest costs (APR) are a bit lower on the CC, then your principal is going down faster with the CC payments than it would be with the 28% loan. That $90 of "cash flow savings" is really just lowering the current principal payment, making the pain last longer.

 

Which credit cards do you have? If you just paid $20k of them off, you might have some options to do BT between certain cards to get your interest cost down, with some BT fees instead.

 

It is good to see you are running calculations on this. The more you understand, the easier it gets to stay focused on that pay down.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 27 of 29
bdhu2001
Valued Contributor

Re: Credit Card debt down nearly $20k


@NRB525 wrote:

@tcbofade wrote:

It would take a year to see the first $25, and about four more months to see the next $25.  (Presumably, about two more months to see the next $27)

 

Still fine tuning my model, but in terms of actual dollars, it's close to a wash...


Doubtful that it's just a wash. If your interest costs (APR) are a bit lower on the CC, then your principal is going down faster with the CC payments than it would be with the 28% loan. That $90 of "cash flow savings" is really just lowering the current principal payment, making the pain last longer.

 

Which credit cards do you have? If you just paid $20k of them off, you might have some options to do BT between certain cards to get your interest cost down, with some BT fees instead.

 

It is good to see you are running calculations on this. The more you understand, the easier it gets to stay focused on that pay down.


+1

 

If you have a smart phone, download two different debt payoff apps.  Use one app to calculate with your current apps and the second app to calculate your new loan. My favorite is DebtFree by mobile innovations.  I've used numerous secondary apps, but DebtFree is my favorite. After you enter the Debts, you can export the data and enter it into your excel spread sheet.

Original Mortgage maturity Sept 2044; Refi maturity Dec 2030
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Current Score: EX 849 EQ 835 TU 843
Goal Score: 850


Take the myFICO Fitness Challenge
Message 28 of 29
Anonymous
Not applicable

Re: Credit Card debt down nearly $20k

It sounds like your CCs are using a shorter timeframe than your loan. Your lower payment with the loan is a reflection of it taking longer to pay off, especially since the loan has a higher APR.

Message 29 of 29
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