Trying to develop a plan for large debt.

Klesko · ‎01-07-2015

So I have 3 installment loans right now that add up to about 47k in debt. I have high income and making the montly payments on these are not a problem except it bugs me the interest I am paying. I am paying about $500 a month total in interest on these. Now in a perfect world I would have a 100k credit card and balance transfer all the debt onto 0% interest card. But I am rebuilding from a BK 5 years ago and my cards are much too small right now to do that. I just started gettting decent limits on my cards and just did another round of accounts. None of which can handle this amount of debt.

Current loans

Lending Club 7k 15.88% 20 of 36 payments left ($403 a month)

Lending Club 24k 12.99% 35 of 36 payments left. ($481 a month)

Prosper 16k 15.50% 48 of 60 payments left ($842 a month)

My plan as of now is to wait about 10-12 months, pay them as it is and just eat the interest per month. This will pay debt down in total from about 47k to 35k. Then look to add about 3 cards which 0% balance transfer offers and transfer 12k each or about that to each card.

These are my current major cards (Not listing store cards)

Barclays Apple 1k CL

Barclays US Airways 6k

Barclays Arrival+ 3k (New account)

Alliant Visa 10k

Best Buy Mastercard 11k

Bank of America 1.5k (New Account)

Total Rewards Visa 15.5k (New Account)

Now out of these cards only the Barclays Arrival+ has a 0% balance transfer offer. As you can see it is not close to near big enough CL to do much with. My scores are TU 706 EQ 685 EX 680. Now this year all my BKed accounts will drop off but the BK still shows on EX and TU so some card choices are limited, like chase and citi for example. I also IIB Amex so I am BL from them right now.

Anyway just wanted some other opinions on my plan and see what people think or if they have some better ideas then me.

Anonymous · ‎01-07-2015

@Klesko wrote:
So I have 3 installment loans right now that add up to about 47k in debt. I have high income and making the montly payments on these are not a problem except it bugs me the interest I am paying. I am paying about $500 a month total in interest on these. Now in a perfect world I would have a 100k credit card and balance transfer all the debt onto 0% interest card. But I am rebuilding from a BK 5 years ago and my cards are much too small right now to do that. I just started gettting decent limits on my cards and just did another round of accounts. None of which can handle this amount of debt.

Current loans
Lending Club 7k 15.88% 20 of 36 payments left ($403 a month)
Lending Club 24k 12.99% 35 of 36 payments left. ($481 a month)
Prosper 16k 15.50% 48 of 60 payments left ($842 a month)

My plan as of now is to wait about 10-12 months, pay them as it is and just eat the interest per month. This will pay debt down in total from about 47k to 35k. Then look to add about 3 cards which 0% balance transfer offers and transfer 12k each or about that to each card.

These are my current major cards (Not listing store cards)
Barclays Apple 1k CL
Barclays US Airways 6k
Barclays Arrival+ 3k (New account)
Alliant Visa 10k
Best Buy Mastercard 11k
Bank of America 1.5k (New Account)
Total Rewards Visa 15.5k (New Account)

Now out of these cards only the Barclays Arrival+ has a 0% balance transfer offer. As you can see it is not close to near big enough CL to do much with. My scores are TU 706 EQ 685 EX 680. Now this year all my BKed accounts will drop off but the BK still shows on EX and TU so some card choices are limited, like chase and citi for example. I also IIB Amex so I am BL from them right now.

Anyway just wanted some other opinions on my plan and see what people think or if they have some better ideas then me.

If you needed a larger limit on the Arrival+, I'm sure Barclay's would oblige and close your other two cards and move their CL over to it to make for $10,000.

Lyythine · ‎01-07-2015

Instead of putting it on 0% CC offers, why dont you try your luck on a CU PLOC? You may be able to consolidate most, if not all of the debt into 1 payment. The interest rate wont be 0%, but I can guess it will be better than 15%. With your scores and assuming a proper income, I do not think you would have much trouble getting a LOC to consolidate these from a good CU. Just my 2 cents