Help me pay off debt & figure out finances please *UPDATE* at end

[tufa4311]

Of course I'd be happy to offer my opinion, as would others. Please begin a new thread and add a link to it here so we can find it. Note: I don't have experience in things like BK or investments, just basic stuff and I learned it all here and with some research. Also, we have some heavyweights here that can help too.

[Anonymous]

Ok tufa4311,

I did it!

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Advice-on-Rebuilding-please/m-p/4105064/highl...

It took A LOT of time, and still isn't posted like I wanted, but, I tried. I would love and appreciate any advice you have to offer!!

Thank you!!!

[Anonymous]

Okie dokie guys and gals- i have paid off 1500 of debt! Whoohoooooo!! I basically had a mini heart attack paying them all off, making sure i was doing the right amounts and dates, but it now feels amazing!!!! Heres the new breakdown:

overstock 0

kays.        0

avenue.    0

VS.          0

Lowes.     0

macys.     0

walmart 640.50

amazon 112.16

cap one.  614

what a rush! Cant wait to pay off Amazon and then finally focus on walmart. Itll be paid off in no time! Huge shoutout to TUFA! Thank you so much for your time!!! I even downloaded excel to track my cards. So excited to see my scores update!!!

(edited to add- i used $150 to pay 100 on cap one and 50 on amazon because they were due. The other 50 is still in checking just in case i made any errors. All cash will go to pif amazon (maybe tomorrow) and then walmart).

[Anonymous]

Also, I decided against taking out a loan on my 401k for now. It is a security blanket until my emergency fund is built. Ive put 50/week the past 3 weeks. Lol i know its not much but i wanted to start lower, so that it would be easier for me to automatically do it and not do less. After more cc debt is paid off, i will increase how much i add weekly. Also, thinking now may be a good time to increase my % I contribute to my 401k. Feels sooooo good to finally be making some financial headway and im proud of myself for taking the time to learn more and actually do it. I realize that all the good things i want in life will come if i set a solid financial plan (car loan with decent rate, mortgage down payment/house, and just security in case of emergencies/job loss.) I hate not having an emergency fund. Dont know how i went so long without saving!!!

thanks to everyone on myfico for sharing their knowledge!

[tufa4311]

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@tufa4311 wrote:

Ok, first based on interest:

	Balance	Credit Line	UTIL	APR	PAY	New Balance	New UTIL
overstock	321	1150	27.9%	26.99	321	0	0
kay	204	3800	5.4%	24.99	204	0	0
avenue	34	650	5.2%	24.99	34	0	0
victoria secret	95	950	10.0%	24.99	95	0	0
lowes	90	800	11.3%	24.99	90	0	0
macys	451	600	75.2%	24.5	451	0	0
walmart	764	1300	58.8%	22.9	305	459	35.31%
cap one	995	2000	49.8%	22.9	0	995	49.75%
amazon	162	3500	4.6%	0	0	162	4.63%
cap one	714	750	95.2%	0	0	714	95.20%
discover	711	1500	47.4%	0	0	711	47.40%
					1500	3041	remaining

Next, let's say you borrow $3000 from your 401K, which has a modest 7% return, compound interest nevertheless, pay off your tradelines that can go as high as 23% APR and begin an agressive auto-paycheck deduction payback plan into your 401K. When I say agressive, I mean all you can handle, if you are going to put yourself under stress paying somebody back, it may as well be yourself! (of course if you choose this option the above schedule is moot)

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Wanted to add one more point - when you're all done with this I'd suggest staying away from those high interest cards, just don't use them, point be damned! 27% Interest? Talk about usury!

I use my Discover IT card alot, just in case I can't pay in full, which up until this point I always can, not becuase I have loads of money, but becuase if I can't pay it I don't buy it, but my Discover card has a 0% APR introductory rate for the first 6 months on purchases, can't beat that.  I see you have a few cards that have a 0% ARP, including the Discover, use those instead, most of those other cards are store cards anyway (I'll leave it at that about store cards)...

[Anonymous]

Ya know what, i honeslty cannot think of one thing id ever buy at Overstock again! It was one of my sct that i so regret. And they dont even increase my limit that often, like most get monthly increases. So theyre done.

Kays has a 3800 limit so i want to keep it open until I can get better cards to replace it with. Ill buy a charm for Mother's Day 😀

I hate my Walmart card! Because I can't believe i let myself charge up that high a balance on a store card! Limits now 4000. But with that balance, ill be generating a statement until i can payoff or bt to 0%.

Ive fallen in love with my rewards cards, and theres really no need to charge on a store card again. At least the cap ones are lower interest rates then store cards. Even with interest, id earn more through rewards to cover it. But hoping with my score increasing, i can get in on those 0% bt.

I wish i could go back in time and only get the Cap Ones and Discover, maybe Amazon too. I hate that my AAoA is ruined for cards like Avenue that ill never use again..
Thanks Tufa! My mvp 😁

[tufa4311]

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@Anonymous wrote:
I wish i could go back in time

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oh, if I could only go back in time, I'd change a few things as well, and I ain't talkin' 'bout which cards I have in my wallet! lol

[Anonymous]

Ha! Dont lie, you'd probably change a couple too 😉

[jayiac]

With exception of my mortgage (which I refinanced to a 15 year fix rate loan) I am debt free. Two years ago, between cards, auto loan and student loans I was in debt for more than 70k. Here is how I did it. 

1 - I stop putting money in my 401k. No matter how much my savings earned and the tax benefit it wasn't close to the cost of the interest I was being charged. 

2. - I prepared a weekly budget that left me comfortable and stuck to it. 

3 - I arranged my cards from lowest to highest. Then attacked the lowest and paid the minimum on the rest. 

4. - With each card that was paid off I attacked the next lowest. 

The first year I paid off 5 cards and my auto loan, the second year I paid off 3 cards and my student loan and refinanced my mortgage to a 15 year loan. Three months ago I paid the last of my creditors and started investing in 401k again. I am so glad I did this. I'll still use a credit card but I make sure that I don't use more than I can pay off each month. 

I just want to say that as you close accounts your score will take a hit. You could keep them open but I didn't want to tempt myself so I left a couple of cards that has a credit line of about 5k each opened.