My CC debt.....how to tackle?

[mjb59463]

Hey everyone,
Just wanted to get some opinions regarding how I should tackle my debt, so that it doesn't become such a huge issue like this in the future.

Here are my current CC stats:

Scores are 675-680 acros the board

1. Barclay Apple: 8k balance, 12k limit (large purchases for work needs)

2. Wells Fargo: 2.9k balance, 3.5k limit (stupid spending on my part + Apple iPhone financing @ 44 per month)

3. US Bank: 900 balance, 5k limit (cell phone bill, but want to close because interest rate is astronomical and they won't reduce)

4. Amex Delta: 570 balance, 5.5k limit (gym, Netflix, MyFico, Hulu, Spotify)

5. CSP: 1.9k balance, 6k limit
6. Ritz: 2.9k balance, 11k limit

These are the debts I have. I have stopped using these cards

myself and taken them out of my wallet (all but the CSP, Ritz and Amex have been cut up), although, I do have all the services set to autopay as far as the Amex (Hulu, Netflix, gym, Spotify, MyFico)and my iPhone on my wells. I don't consider those to be astronomical/ unnecessary expenses, as Spotify is 10, Gym is 29, Netflix is 7, Hulu is 10, and MyFico is 29.

I would really like to close US Bank, and pay down the balance as best as I can on the wells, so I can sock drawer it and pay my 40 bucks per month on it as well. These two also have the highest interest rates.

I do need to keep my cell phone bill on autopay, which card should I stick that on?

I currently have about 6.8k cash to which I can put towards any combination of debt without compromising things like rent/car/food/internet. After that, I will have approximately 1800 per month to deal with these credit card debts, seperate from all other expenses.

So now, I need some advice.
1. Where do I use my 6.8k towards immediately?
2 what should be my strategy going forward, having 1800 to work with each month?

Thank You,
Happy Holidays

[Anonymous]

I'd say pay off the Wells Fargo first because it's approximately at 70%, then pay off the US Bank and Amex. Then use the rest for the Barclay card (75%). At that point you should get a nice little score bump for only having half your cards having balances and reducing the high UTI on 2 cards. As for the future, you can either split the 1800 onto the remaining 3 cards, or put it all on one. If you do the last you might want to put it on the Barclay first to reduce it more or on the CSP to basically have it paid off

[mjb59463]

The Wells and Amex cards have recurring charges. 44 for Wells every month, and around 85 for the Amex. I can PIF those easily every month as they recur. In the scheme of things, I'm not really worried about the Amex. it will now no longer get used for anything but the small expenses that are on kt. I'll probably cut that one up too.

I can't put the total 1800 towards one card every month, because I still have to make minimums on the rest of the cards I do have. That comes out of the 1800 as well. 

Barclay, Wells and Ritz are my big worry points, in that order. Before I address the small stuff (in comparison), I'd like to tackle what I can of the big stuff with the $$ that I have now.

[Anonymous]

In that case I'd pay off the Wells and CSP and put $1000 towards both the Ritz and Barclay. Next 2 months put as much as possible to either of those 2 (Ritz would be my choice). By the third month (depending on what your minimums are) the Ritz should be close to being paid off if not completely paid off. Then start on the other card adding whatever the minimum was for the previous card.

[Anonymous]

Drat, thought the CSP was on the list you were concerned about most. That'll teach me to read more closely. Pay off the Wells and Ritz the work on the Barclay in the same manner as above.

[JMMD]

I'd pay off the Ritz and WF and put any remaining money towards the Barclay's. Then send what you would pay towards the paid off cards to the Barclays ( snowball) each month. 

[Anonymous]

You are in a pretty decent situation. After putting the 6.8k wherever you put it, you only have about 10k left, so basically debt free in 6 months. That doesn't leave much time to accrue too much interest. For me I like seeing the number of cards with balances go away. So I would use the 6.8k to knock off as many cards as I could, that would also eliminate monthly minimums. Then tackle the remaining balances in the same fashion.

[NRB525]

Have you tried to PC your US Bank card to Cash+? That gives you the option to put two 5% categories each quarter, including Cell Phone, so once you get it to PIF, keep the cell phone bill going there and get 5% back every month. Plus another 5% category you might use, Department Stores, Fast Food, Sporting Goods, and a 2% category like groceries.

Cutting up cards is never a good plan, in my opinion. Best to work on ones own approach to using the cards, for long term understanding, rather than the drastic step of destruction.

Pay off the US Bank card, Delta card, to get two cards freed up for PIF situations.

Likely CSP next, if you use that card frequently. PIF from here on out.

When do you get reimbursed for all the costs on the Barclay card?

[tntexans72]

17,170 (balance) - 6800 (pay off all small balances first) = $10,370 divide by 1800 = 6 monthly payments = debt free

I personally would knock off all the small balances first. Your $8K balance on Apple, is that a 0% interest purchases?

[SouthJamaica]

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@mjb59463 wrote:

Hey everyone,
Just wanted to get some opinions regarding how I should tackle my debt, so that it doesn't become such a huge issue like this in the future.

Here are my current CC stats:

Scores are 675-680 acros the board

1. Barclay Apple: 8k balance, 12k limit (large purchases for work needs)

@2. Wells Fargo: 2.9k balance, 3.5k limit (stupid spending on my part + Apple iPhone financing @ 44 per month)

3. US Bank: 900 balance, 5k limit (cell phone bill, but want to close because interest rate is astronomical and they won't reduce)

4. Amex Delta: 570 balance, 5.5k limit (gym, Netflix, MyFico, Hulu, Spotify)

5. CSP: 1.9k balance, 6k limit
6. Ritz: 2.9k balance, 11k limit

These are the debts I have. I have stopped using these cards

myself and taken them out of my wallet (all but the CSP, Ritz and Amex have been cut up), although, I do have all the services set to autopay as far as the Amex (Hulu, Netflix, gym, Spotify, MyFico)and my iPhone on my wells. I don't consider those to be astronomical/ unnecessary expenses, as Spotify is 10, Gym is 29, Netflix is 7, Hulu is 10, and MyFico is 29.

I would really like to close US Bank, and pay down the balance as best as I can on the wells, so I can sock drawer it and pay my 40 bucks per month on it as well. These two also have the highest interest rates.

I do need to keep my cell phone bill on autopay, which card should I stick that on?

I currently have about 6.8k cash to which I can put towards any combination of debt without compromising things like rent/car/food/internet. After that, I will have approximately 1800 per month to deal with these credit card debts, seperate from all other expenses.

So now, I need some advice.
1. Where do I use my 6.8k towards immediately?
2 what should be my strategy going forward, having 1800 to work with each month?

Thank You,
Happy Holidays

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Take any accounts that have >40% balance & pay them down to 39%... then do the same until they are all at 29% or lower... then 9%.....