When I took out two loans in the good times to consolidate past debt and pay off credit card debts, I thought I was doing good by just having the loans to pay every month. Come to find out that the loans are credit card debts themselves and are with BOA.
Although the balances are high, I see them slowly going down, and have won the battle to reduce the interest with one BOA loan.
To keep the temptation of using cards I want to know what would happen if I just cut the cards I feel are too high and cause grief and just keep the ones I need 4 of them? Do these companies eventually close the accounts now if you don't use them?
It's confusing because we learn to pay "off" balances each month. Now you are penalize if you do this, because the companies and banks don't make any money off of you. So in turn jack the interest rate up.
My question is this...if I have high balances and I'm doing the best I can at the moment paying down my accounts, will my fico hurt my husband if he tries to buy a car. Some of our accounts are joint. The loans were in my name only.
If you do not use cards they will probably cancel them.
Joint accounts with high utilization will hurt DH.
I would advise not buying the car. If you have to get the cheapest junker you can get that runs and pay the debts down. Because of the economy and the new credit law we are in for a rough ride for the next year and those who carry excess debt will have the most problems.
More debt is not good.
Being debt free - priceless.
That's what I thought about the cc and about the car...well that now will wait.
Although my husband and I have some separate accounts, I still don't want to have the debt regardless. It's going down slow and that's good. Like you say the economy is still on a rocky roller coaster ride and no knows just what is around the next turn.