Have $10,000 and not sure what to pay down or off first.

[tehdrizzle]

Hi everyone,

          I'm a long time luker and first time poster here.  I've seen so much good feedback and advice on here so I decided to put my dilema out here to see what kind of advice I can get regarding what to pay down.  I've got about $500 extra at the end of each month extra after regular living expenses that I can put towards my debt and also just recently received a $10,000 bonus from my new job and I want to put it towards my debt but am not sure what to put it towards first.  Here's my list:

Personal unsecured loan with my credit union - $9040 balance, $275 per mo, 10.99% rate, about $95 per month to interest

Credit Union Visa credit card - $1,000 credit limit, $900 balance, $20 per mo, 9.99% rate

Chase Visa credit card - $3,000 credit limit, $2,175 balance, $25 per mo, 0% until June 2013 then 19.99%

Citi Visa credit card - $6,500 credit limit, $5,400 balance, $100 per mo, 0% until August 2012 then 15.99%

Best Buy store credit card - $3,500 credit limit, $3,100 balance, $50 per mo, 19.99%

Newegg credit card - $6,500 credit limit, $4,500 balance, $150 per mo, 21.99%

Thanks in advance for any advice!

[Anonymous]

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@tehdrizzle wrote:

Hi everyone,

          I'm a long time luker and first time poster here.  I've seen so much good feedback and advice on here so I decided to put my dilema out here to see what kind of advice I can get regarding what to pay down.  I've got about $500 extra at the end of each month extra after regular living expenses that I can put towards my debt and also just recently received a $10,000 bonus from my new job and I want to put it towards my debt but am not sure what to put it towards first.  Here's my list:

Personal unsecured loan with my credit union - $9040 balance, $275 per mo, 10.99% rate, about $95 per month to interest

Credit Union Visa credit card - $1,000 credit limit, $900 balance, $20 per mo, 9.99% rate

Chase Visa credit card - $3,000 credit limit, $2,175 balance, $25 per mo, 0% until June 2013 then 19.99%

Citi Visa credit card - $6,500 credit limit, $5,400 balance, $100 per mo, 0% until August 2012 then 15.99%

Best Buy store credit card - $3,500 credit limit, $3,100 balance, $50 per mo, 19.99%

Newegg credit card - $6,500 credit limit, $4,500 balance, $150 per mo, 21.99%

Thanks in advance for any advice!

In my opinion I would pay in this order if it were me,

Newegg-full

Best Buy-full

Chase-full

Roll up what you  were paying on the Newegg, best buy, and chase  (250) and start paying down the Citi Visa which would now be 350 a month and any extra you can to pay that down more quickly.  Once that is paid off then I would roll all of that over again to the Credit Union card then again to the personal loan.  If you keep rolling over your minimum monthly payments in that sequence then knocking out all your bills with in the next 12-24 months is super likely!!  Maybe even sooner depending on how much extra from your 500 a month you intent on putting into all of that as well.  Good LUCK my friend. 

[compassion101]

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@tehdrizzle wrote:

Hi everyone,

          I'm a long time luker and first time poster here.  I've seen so much good feedback and advice on here so I decided to put my dilema out here to see what kind of advice I can get regarding what to pay down.  I've got about $500 extra at the end of each month extra after regular living expenses that I can put towards my debt and also just recently received a $10,000 bonus from my new job and I want to put it towards my debt but am not sure what to put it towards first.  Here's my list:

Personal unsecured loan with my credit union - $9040 balance, $275 per mo, 10.99% rate, about $95 per month to interest

Credit Union Visa credit card - $1,000 credit limit, $900 balance, $20 per mo, 9.99% rate

Chase Visa credit card - $3,000 credit limit, $2,175 balance, $25 per mo, 0% until June 2013 then 19.99%

Citi Visa credit card - $6,500 credit limit, $5,400 balance, $100 per mo, 0% until August 2012 then 15.99%

Best Buy store credit card - $3,500 credit limit, $3,100 balance, $50 per mo, 19.99%

Newegg credit card - $6,500 credit limit, $4,500 balance, $150 per mo, 21.99%

Thanks in advance for any advice!

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new egg 4500

best buy 3100

credit union visa 900

citi visa 1500

Then I'd work on the citi visa with the extra $500/month which takes you to approx Feb to pay off in full. Prob pay off remaining chase after that, leave the installment loan at the monthly payments.

[cmthomas06]

Completely pay off the Newegg, best buy card, and CU visa card. That leaves you with $1500 to put towards the personal loan. 

Reasoning: Paying off the newegg and BB cards relieves you of the highest interest rates; therefore saving you lots of $$ I would then choose the CU visa card because the other 2 cards aren't costing you anything in interest. By putting the $1500 towards your personal loan, the amount of interest charged goes down ~ $20.

By paying in the order I stated, the money you are saving on combined interest alone comes to ~ $160 a month! Put this money towards the Citi card since it will begin collecting interest before the Chase card. 

[Anonymous]

haha well it looks like you have lot's of options.  Let us know what you do if you don't mind shareing with us.  I'm also intrested on what your credit score will jump up to about 90 days after you do all of your paying off!!

[tehdrizzle]

Thanks everyone, I will be sure to post what I decide here in the next few days.  My credit score right now is a 720 so I'm hoping it will shoot up to closer to around 800 after this has been done.

[webhopper]

Keep us posted and good luck!

[tehdrizzle]

Well I made the move last night and paid off the items below:

Newegg - $4500

Best Buy - $3300

Credit Union Visa - $900

Chase Visa - $2000

I figured I'd just pay the Chase card off since I had enough extra to do it.  Now I've just got the Citi Visa and then no more CC debt at all!  I'll be able to throw around $850 or so per month at that to have it knocked out in no time.  After that I'm going to attack my personal loan which has $9047 still as the balance.  At that time I'll be able to throw around $1000-$1100 per month at that.  After that I'll just have my car loan which is only $200 per month and matures in 2015!

Sadly, paying the Newegg card off doesn't reflect on my credit since they don't report, but it will free up $150 per month!

[Quips]

Congrats - nicely done. Good luck with your plan and let us know the impact to your score.