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Senior Contributor
Posts: 4,635
Registered: ‎03-11-2007
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Re: Need advice on paying down debt

Read the CC Tactics link in my sig.
 
Call Chase and ask about an APR reduction and CLI. Tell 'em you have other high interest CC debt, and if they could reduce the APR and raise your CL, then it would be advantageous for your to BT some CC debt onto the Chase VISA. But a 29.99% APR just won't do. They'll probably do an INQ, but if you get something outta them it would be worth it.
 
Pay USAA $300 and get the balance down to $150. Once they cash the check, hit them up for a CLI. That will give you somewhere to which you can BT your highest APR CC debt.
 
Pay the Capone VISA and MC balances down to about $300 each. When they've cashed the checks, call 'em up and ask if they'll combine both CCs into one CC, and give you both an APR reduction and CLI. If they ask, tell 'em you want a $5K CL.
 
As you make headway, BT your highest APR CC to your lowest APR CC. Try not to max things out, but you're already at 74% util overall, 91% on those CCs with a balance.
 
Valued Contributor
Posts: 2,010
Registered: ‎07-01-2007
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Re: Need advice on paying down debt



granny031350 wrote:
ok, not to disagree here but Dave Ramsey also offers some good advice which I have followed and it is working for me.  But I paid off my smallest balance first, in full.  Wow, what a great feeling, 1 down and 3 to go etc mentality. 


That's not at all a disagreement.  Like my mother in-law says 'that's why there is vanilla and chocolate'.  Glad it is working so well for you!  That's what counts... everyone is individual.
EQ 787 EX 781 TU 737 11/17/07 *** I am not an attorney. If I was, I might not clip coupons. If you want legal advice, consult an attorney. If you want my personal opinion, feel free to consider my posts***
Valued Contributor
Posts: 2,010
Registered: ‎07-01-2007
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Re: Need advice on paying down debt



netpanther wrote:
Dang SmartCookie- your scores are really getting high!! Kewlness and congrats on all your hard work.


Thanks netpanther!  It was a good year for increasing CLs, dropping a mystery derog, and adding a very old AMEX account back in.  Appreciate the comments!  Smiley Happy
EQ 787 EX 781 TU 737 11/17/07 *** I am not an attorney. If I was, I might not clip coupons. If you want legal advice, consult an attorney. If you want my personal opinion, feel free to consider my posts***
Valued Contributor
Posts: 1,694
Registered: ‎08-07-2007
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Re: Need advice on paying down debt



SmartCookie wrote:


netpanther wrote:
Dang SmartCookie- your scores are really getting high!! Kewlness and congrats on all your hard work.


Thanks netpanther!  It was a good year for increasing CLs, dropping a mystery derog, and adding a very old AMEX account back in.  Appreciate the comments!  Smiley Happy


No problem! I was just noticing how high they are getting! You Fused, and Brammy!
Valued Contributor
Posts: 1,694
Registered: ‎08-07-2007
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Re: Need advice on paying down debt

SmartCookie- but what I am really impressed w/ is that you are ALL OVER 720 and two over 760!!! That is sooooooooooooooooooooooooooooo Cool!
New Member
Posts: 2
Registered: ‎12-16-2007
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Re: Need advice on paying down debt

Thank you SO much for everyone's advice so far. It has been very helpful!!
Regular Contributor
Posts: 167
Registered: ‎06-18-2007
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Re: Need advice on paying down debt

SmartCookie, how did you get your old AMEX account added back in?  I had a closed, positive AMEX  TL on my credit report from 1997 that TU deleted by accident.  They will not put it back on, and I was nervous to call AMEX because I don't want them to just delete the account all together.  I would also like them to report this on my EQ.  Is there a # or an addy that you can share?  I would appreciate greatly anything you can tell me.  Thank you.Smiley Happy

Starting Score: 718
Current Score: 718
Goal Score: 800


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Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
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Re: Need advice on paying down debt

[ Edited ]
The way you pay down your debt is completely up to you.  Some say pay those with the highest interest rates first, though depending on the balance they may not be costing you the most.  Some say pay off the smallest balances first for a sense of accomplishment.  Personally I use financial software to guage what payment goes where.  I love my pocketbook.
 
 
 
 


Message Edited by Brammy on 01-02-2008 03:58 PM
Senior Contributor
Posts: 4,635
Registered: ‎03-11-2007
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Re: Need advice on paying down debt



Brammy wrote:
Some say pay those with the highest interest rates first, though depending on the balance they may not be costing you the most.

When you say "most", per $X of debt, the highest interest rate is usually costing you the most.
 
If one has $1K at 21%, and $20K at 18%, the $1K at 21% is costing the most per $X of debt. The $20K at 18% might cost more in finance charges, but it's a larger amount of debt. Ya always look at it on a "per capita" basis, so to speak. If I had $500 to pay debt, in this example, I'd make the minimum on the 18% debt and pay the rest to the 21% debt.
 
That's just me. No feelings, no heart, and no reflection.
 
Now, some CCCs play big games with interest rate calculations, but you can usually figure 'em out. On one's monthly statement, there will a breakdown of what dollar amount is costing what APR and what finance charges.
 
Might read like this:
$1,298.45 at 16.59%
$4,107.12 at 18.42%
$3,001.08 at 24.51%
 
There will be dollar amounts of finance charges at each APR. Just divide the finance charges by the balance at that rate to get a real, basic APR.
 
Not all 19.49% APRs are created equal.
 
PIF a small debt can have the advantage of using it as leverage. PIF a $500 CL CC, and pressure 'em to give you a CLI and APR.
 
"Hi, First National Bank of Ratejacking? Yes, I just called to inquire about a CLI and APR. I just PIF my CC with y'all because, well, for one, I can, and two, y'all are charging me the highest interest with a very tiny CL. Do you think you could gimme a CLI and APR reduction? I have other high interest debt, but the rate is much lower than what y'all charge."
 
OK, when you call, maybe you don't wanna use all the invectives that I freely toss about.
 
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0

Re: Need advice on paying down debt

[ Edited ]


Noah_Bodie wrote:


Brammy wrote:
Some say pay those with the highest interest rates first, though depending on the balance they may not be costing you the most.

When you say "most", per $X of debt, the highest interest rate is usually costing you the most.
 
If one has $1K at 21%, and $20K at 18%, the $1K at 21% is costing the most per $X of debt. The $20K at 18% might cost more in finance charges, but it's a larger amount of debt. Ya always look at it on a "per capita" basis, so to speak. If I had $500 to pay debt, in this example, I'd make the minimum on the 18% debt and pay the rest to the 21% debt.
 
That's just me. No feelings, no heart, and no reflection.
 
Now, some CCCs play big games with interest rate calculations, but you can usually figure 'em out. On one's monthly statement, there will a breakdown of what dollar amount is costing what APR and what finance charges.
 
Might read like this:
$1,298.45 at 16.59%
$4,107.12 at 18.42%
$3,001.08 at 24.51%
 
There will be dollar amounts of finance charges at each APR. Just divide the finance charges by the balance at that rate to get a real, basic APR.
 
Not all 19.49% APRs are created equal.
 
PIF a small debt can have the advantage of using it as leverage. PIF a $500 CL CC, and pressure 'em to give you a CLI and APR.
 
"Hi, First National Bank of Ratejacking? Yes, I just called to inquire about a CLI and APR. I just PIF my CC with y'all because, well, for one, I can, and two, y'all are charging me the highest interest with a very tiny CL. Do you think you could gimme a CLI and APR reduction? I have other high interest debt, but the rate is much lower than what y'all charge."
 
OK, when you call, maybe you don't wanna use all the invectives that I freely toss about.
 


 
Nope not what I meant at all.  But if that 10.99% with a 2100.00 balance is compared to that 250.00 at 12%.  The 2100.00 Is costing you the most solid money in interest a month.  that is until you bring the 2100.00 balance down enough were the monthly finance charges are less than the smaller balance.
 
Thats why I use financial software, I am often surprised at how my payments are allocated. But I have it set to cost me the least amount of money.



Message Edited by Brammy on 01-02-2008 04:41 PM
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