Is this a good plan for paying off debt?

[medink]

Fiscal Credit Card (Bank of America) owe $1000.  APR 16 percent, $2500 credit limit

I'll pay $500 on Feb. 27, 2009 then March 13, 2009 pay $500 to get o balance.  I'm told I should leave the account open.  And I'm also told that my rate should be around 12 percent so I plan to call and try to have my interest rate dropped.  It was suggested that if they don't give me the lower apr, I should transfer my funds to a new account.  I really don't want to do that since I purchased this card a year ago. 

Wamu Credit Card owe $3850.  APR 12 percent, $4000.  This is my highest amount owed.  I know I should pay this off and I will after I pay the above.  I plan to make $1000 a month payments which I plan to pay this account off at the end of June 2009.  I've had this card  for a year or two.  It will be a tight budget but I know I'll feel much better having no debt. 

Household Card - 0 balance.  Does have an annual fee.  This is my oldest card.  I've had it for 5 years.  The limit is low $900.  Can't decide if I want to keep or get rid of it.  15.99 APR (they've increased it as I've paid the card down)

Home Depot card - 0 balance.  $4000 credit limit.  Don't intend to ever use the card again.  I just got it because of the 15% off on a big purchased that I just paid off in December at 0 APR for one year.  Should I get rid of this?

I'm getting mixed messages.  Some say keep it and others say to close them if they are at 0 balance.  Or if they have an annual fee, cancel the card.  Just want to see if I could get some more opinions. 

Thanks!

[iwantbettercredit]

First off, I think it would depend on what you are trying to accomplish here.  I would be more concerned with payng down the Wamu card since it is basically max'ed out. The high balance has got to be hurting your score, Then I would work on the boa card.  As for Household card. Do you have an annual fee on that one? if so, get rid of it, even if it is your oldest it will still be on your report for 7-10 years ( THey are probably mixed reviews on this board about closing) and I would keep the Home Depot for emergency and.or for minor things like nails and screws and then pay if off.

Just my two cents that is only worth about a penny

[Uborrow-Upay]

I would keep an eye on the WaMu account in particular, and do whatever you can NOW to make any substantial payments towards that balance, regardless of interest costs paid on other accounts.

WaMu is converting to Chase, definitely a prime bank, and you want that card in your wallet.  Right now, as it sits with 96% utilization, you're inviting AA on that account when it converts.  Take $500 of your money and pay it towards WaMu now, and cut the Fiscal payment to 1/2 of what you'd planned. 

Don't close any cards, regardless of annual fees.  Credit is evaporating quickly, and while it may seem like a good idea to save that AF, you've spent money in worse ways, just like everybody else.  You don't have a lot of credit, you may not get any more in the short term the way the economy is right now.   Don't burn your bridges, think of the AF as an "insurance premium" .

Debt-free is good, but stay in the game with maintaining an acceptable credit profile for future need.

Good luck with everything, medink! 

[Creditaddict]

I agree with paying on the wamu quickly, but I think 2 months away like your original plan posted would be fine especially if you then tackle it with 1k payments.

I would not close any cards until you pay your other 2 off, then at that point I would call household and ask them to waive the AF or you will close the card, if you have 0 debt the $900 CL won't hurt you to loose.

I would for sure keep Home Depot, they most likely will not close it for sitting with 0 balance but wouldn't hurt every 6 months to go buy some paper towels or something, that's what I did until I needed it, which I bought washer and dryers 2 weeks ago! 

[Uborrow-Upay]

CreditAddict, I'm suggesting the OP's first $500 payment on February 27 go straight to WaMu, the primary reason being that the conversion to Chase is taking place on March 4th-8th (at least that's the schedule I'm aware of...YMMV).

It may not help, but then again it very well may prevent any adverse action after this conversion.   Demonstrating right now the ability and the willingness to pay on that WaMu account is, IMO, the best move for her, all other things being equal.

[Creditaddict]

then I agree if the conversion is getting ready to take place try to throw $1000-1500 at it RIGHT NOW!!

That is going to be a card you want to convert with no issues and to convert not on there radar as an account we have to watch!