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Frequent Contributor
Posts: 258
Registered: ‎06-10-2012
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Re: Need some gameplan advice for paying down my debt


LS2982 wrote:
Went from being confident to just down in the dumps and depressed about it. Makes you feel like a failure at times.

Not gonna let this beat me, I had my fun now I have to do the right thing and pay it back which I have absolutely no problem doing. I had a problem. My solution now is to take pride in seeing this big number down slowly and slowly every month.


Don't let yourself get depressed.  They're bills.  Everybody's got them, and everybody's got to pay them.  From what you've told us, it sounds like you didn't get in over your head, and that you make enough to pay down this debt in a matter of months, not years.  I'm sure you want to get out of this situation as soon as possible and not get into it again; just be thankful that it's still manageable.

 

Hopefully, you spent at least some of that money on things you can continue to enjoy.  When you're living on a budget, and you haven't spent any money on entertainment in a couple of months, you can get a little antsy.  When that happens, take some time to appreciate the things you have; go crank up the volume on your truck's new sound system, for example.  Just keep your head up and stick to your plan, and you'll get through this.


Starting Score: 617 (EQ 6/10/12)
Current Score (8/28/13): EQ: 691 EX: 706 TU: 700
Goal Score: 700

Discover it $4,500 (02/2001); Amex PRG (Backdated to 01/2006); Amex ZYNC (Backdated to 07/2006); Wells Fargo Cash Back Visa $5,500 (12/2011); Citi Diamond Preferred MC $2,000 (07/2012); B of A Cash Rewards Visa Signature $5,000 (02/2013)

Contributor
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Registered: ‎05-17-2011
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Re: Need some gameplan advice for paying down my debt

Do you have anything that has a high resale value that you can sell on eBay? That's one of the quickest ways to reduce debt.

Valued Contributor
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Registered: ‎08-13-2007
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Re: Need some gameplan advice for paying down my debt

LS - consider Lending Club... You should be able to get a decent rate from them and consolidate it all to 3 years. Then you are done.

 

Who cares about the INQ if it gets you in a better position. I would think you would have no problem with an approval from them.

 

Heck, you do a loan with them and I will invest in you! I do quite a bit of investing there....

 

Good luck - you can get this behind you. Just think of the "smart" money and how you should drive it.

Ray

** Every Card has a Job, and Every Card does its Job **

Mega Contributor
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Registered: ‎04-09-2011
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Re: Need some gameplan advice for paying down my debt

Thanks for your adice Ray! Can you PM me details of how lending club works?



Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
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Mega Contributor
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Re: Need some gameplan advice for paying down my debt

Is it a HP for just getting a rate? I noticed they wanted to pull TU.



Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
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Registered: ‎03-15-2007
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Re: Need some gameplan advice for paying down my debt

LS2982,

I'll stand with you on this issue and say I have unsecure debt too, mines is $20K. My debt accumalated during the holidays too, buying new shoes, clothes, eating out a little more than usual, meeting spending requirements on existing credit cards, and a new one I recently obtain.

 

My mistake was when I stopped buying groceries, cook at home, taking my lunch to work, and eating out instead. I was living "the good" life. And the credit cards with dinning rewards didn't make it any better. I thought it did. Boy was I wrong!

 

I thought to myself, wow! This is getting crazy, and how did I arrive here. After some sleepness nights, I came up with a plan, and it has work for me. I applied for a personal loan with my local credit union, with a fixed interest rate for 36 months. Paid off all of my cards with the cash, and this was just this month. I've consolidated all of my cards, into one payment.

 

Now, I went back to using just cash, cut off the cable, downgraded my cell phone and cooking my own great tasting food at home! So don't feel bad, you and me both have debt on this forum. We maybe the only ones, but will both get our debt paid off if we stick to our gameplan.

 

Cory

Valued Contributor
Posts: 1,960
Registered: ‎08-13-2007
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Re: Need some gameplan advice for paying down my debt


LS2982 wrote:
Is it a HP for just getting a rate? I noticed they wanted to pull TU.

It is a soft pull to begin with. You input your information and they respond with options for you. They will show you rate / term options.

 

Then if you decide to move forward and accept the loan, they will HP on TU.

 

But again, you need to do what is right for you - if an HP makes it work, so be it!

 

I will PM you.

Ray

** Every Card has a Job, and Every Card does its Job **

Frequent Contributor
Posts: 427
Registered: ‎09-08-2010
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Re: Need some gameplan advice for paying down my debt

My "mom' warning for this... if you do get a loan to consolidate this debt, put your cards in the drawer until its paid.  Not many of us (myself included) have the discipline to pay the loan and NOT use our cards for a little bit here, a little bit there.  and those little bits add up if we don't pay attention.

Back in the garden!
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Frequent Contributor
Posts: 258
Registered: ‎06-10-2012
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Re: Need some gameplan advice for paying down my debt

Agreed with codimom. I really don't think a consolidation loan is the answer here. A consolidation loan is only good for 3 things: 1) reducing your overall monthly payment; 2) getting a better interest rate; and 3) having only one bill to keep track of, instead of many. I don't think any of these factors are relevant here. You can already make more than the monthly payment due, you're already getting 0% interest on most of this debt, and being a forum member, you obviously have no trouble micro-managing your many accounts. Plus, you run a very real risk of running up your CCs again once you get them paid off; you may have the best intentions right now, but having all those CCs sitting there with $0 balances for months/years on end would prove to be a powerful temptation.

If it's AA you're worried about, I really don't think you need to worry as long as you keep all of your accounts in good standing and don't miss any payments.

My advice from earlier in the thread still stands. Make a budget, cut back on all non-essential spending, and you'll have this $18K paid back in months, not years.

Starting Score: 617 (EQ 6/10/12)
Current Score (8/28/13): EQ: 691 EX: 706 TU: 700
Goal Score: 700

Discover it $4,500 (02/2001); Amex PRG (Backdated to 01/2006); Amex ZYNC (Backdated to 07/2006); Wells Fargo Cash Back Visa $5,500 (12/2011); Citi Diamond Preferred MC $2,000 (07/2012); B of A Cash Rewards Visa Signature $5,000 (02/2013)

Regular Contributor
Posts: 369
Registered: ‎02-01-2010
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Re: Need some gameplan advice for paying down my debt


LS2982 wrote:
Went from being confident to just down in the dumps and depressed about it. Makes you feel like a failure at times.

Not gonna let this beat me, I had my fun now I have to do the right thing and pay it back which I have absolutely no problem doing. I had a problem. My solution now is to take pride in seeing this big number down slowly and slowly every month.


Oh no! Keep your confidence level up. You CAN do this!!! You are a person who freely acknowledges mistakes. You asked for advice as many of us do here. The way I see it, wrongs having been admitted, let's see how to tackle the problem.

 

If someone spills wine on my white carpet, I'd better get out the Oxiclean and attack the stain quickly. It would do no good to carry on about how careless that person was, if only they hadn't taken the glass of wine into the formal living rooom, etc. My point is, what's done is DONE!

 

To your original question...I use a debt calculator that lets me list my balances and apr for each creditor and lets me use different repayment scenarios. I use it all the time, as I update it when one of my 0% BT offer is about to expire. I will then put in the regular apr. Anyway, I find that this calculator helps me with deciding the most efficient repayment strategy. It uses several versions of the snowball method. You can choose the repayment order based on balance, apr or use a custom option. If you'd like a copy of the Excel spreadsheet, just send me a PM.

 

In January of 2012 my utilization was 78%. Yes, I overspent but I'd also been out of work for 6 months a couple of years before that. I barely made minimum payments, so the interest was piling up. Thankfully, not one payment was late. Now my utilization is @ 45%. Not ideal by any means but I'm happy that I'm making progress!

 

You will be fine. I'm sorry you've had to deal with well-meaning negative comments.

Meg.

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