General Credit Topics

[sl]

If you are trying to get rid of the debt, I would start off paying down the one with the highest interest rate.  That is what I am doing on mine.  You don't see the progress right away but saving in the long run.  I am sure others may disagree with me.

[Tuscani]

There are advan\disdvan to every possible solution, this includes whether or not to pay debt as it is, or roll into HELOC. Either way works. You just have to weigh your options and decide which path is best for you.

[sankofa]

masdeocho,

I agree with you regarding the HELOC!   We don't plan to buy another  home or car for a long time! 

Your post is pretty much my thinking.  The two small amounts with HSBC and CitiDividend are PIF monthly, but I listed them as they are a part of our debt at this moment in time. 

I wasn't sure if I should do anymore consolidating with the current companies that we have lines of credit with. 

Thank you.  BOA is already being attacked as their balance was $6600 just recently, but we have managed to pay that one down. 

SandyK

[sankofa]

thanks sl,

Your point is well taken.  That's why I don't run a big balance on HSBC monthly. 

It will take time!  Just have to roll up the sleeves and get on with it. 

I try not to let the opinions of others deter me, because we knew what we were doing when we bought the said automobile and remodeled.   

Just asking for concrete advice here and that is what I am receiving!!  I thank everyone!

SandyK

[masdeocho]

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sankofa wrote:

masdeocho,

I agree with you regarding the HELOC!   We don't plan to buy another  home or car for a long time! 

Your post is pretty much my thinking.  The two small amounts with HSBC and CitiDividend are PIF monthly, but I listed them as they are a part of our debt at this moment in time. 

I wasn't sure if I should do anymore consolidating with the current companies that we have lines of credit with. 

Thank you.  BOA is already being attacked as their balance was $6600 just recently, but we have managed to pay that one down. 

SandyK

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You're welcome!  You've got the positive attitude that's necessary.  Keep us posted!

[Noah_Bodie]

And now for something completely different.

It really isn't all that bad. The real questions are how much are you paying each month and do you have extra you can pay either lump sum or each month? Tuscani mentioned HELOC. I'm inclined to agree. Maybe not as a PIF solution, but perhaps bang util down to 30%, then see if you're disciplined enough to continue paying monthly from there.

How good are you with Excel or some other spreadsheet? I'm a lousy accountant, but I'm a whiz with Excel. Here's my Excel based analysis.

You have a total CC CL of $93K, total CC balance of $33K.

Your overall util is 35%, and only 3 of your CCs are over 50% util--Cap1, Cap1 and CitiDiamond. It would take only $590 to bring those 3 CCs under 50% util.

However, CitiDiamond is 0% APR life of the loan. I would not rush to PIF that one. Can you move more debt onto CitiDiamond at 0% APR? Tuscani or Barry could better advise whether it might, short term, be worthwhile to run CitiDiamond say up to 90% util, because of the 0% APR, and continue hammering on higher APR CCs.

Next milestone of 30% util on all CCs would cost $11K. All at or under 20% util, $18K. Bringing them all down to 9% util would cost $26K.

Here are the CCs costing you interest and the amount paid on them to bring the CC down to 9% util. They are in descending order from highest APR to lowest APR.

CitiSimplicity       $2500
cap1 ($3500 CL)      $1702
Amex Clear           $4088
Blue Amex            $5572
Blue Cash            $2476
cap1 ($1600 CL)       $926

[Noah_Bodie]

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sankofa wrote:

Bank of America reverts to 7.9% and Wamu reverts to 9.9%

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For the moment ignore that fact. They are 0% APR today.

BOA is 47% util. I'd let it be until it jumps up in a few months. Then BT it elsewhere.

However, WAMU is 0% APR for another 6 months. I would BT $2K from CitiSimplicity to WAMU. Keeps WAMU under 50% util and CitiSimplicity is your highest APR CC. CitiSimplicity is the one to attack today.

Check with your CCC to see whether there's a BT fee. Those can perhaps offset any advantage from BTing to a lower APR CC.

[masdeocho]

It all depends on what your goals are.

If you are looking to get out of debt (which is what I understood OP's issue to be), you will come up with a different solution than if you are looking to maximize your FICO score by lowering util.  Util has absolutely no importance until around the time you apply for credit.  There are no "points" to be gained for historical util.

[sankofa]

Hi Noah!

I don't think the debt is bad myself considering all that we did with it!  Would have cost us much more had we hired a professional. 

Anyway, I thank you for your input as well. 

You got me to thinking about reallocation.  I received a letter from Amex stating I can reallocate any of my credit lines by just calling them.  I am thinking about reallocating $3100.00 from Blue Cash to Amex Clear and paying off CitiSimplicity. 

CitiSimplicity doesn't have balance transfer option online anymore.  Could call them, but Citi CR  said I could reallocate CLs among my other Citi Cards. 

 Then I would  reallocate $4800.00 of the CitiSimplicity line to CitiDiamond.  I would then have a credit limit of $12,800.00 with CitiDiamond.   $12,800 - 3,068 = $9,732.00 to work with.  Should I still pay down both Capital Ones with that to under 50% and then start on BOA?  WAMU is already close to 20% util. 

[sankofa]

Masdeocho,

Yes my intention is to get out of debt for sure! 

You know I always worry about utilization and it makes sense not to worry about it unless you're going to apply for credit.  I definitely am NOT applying for credit anyway soon.  I do have my share. 

I think Noah hit on something very important!!  I could use 90% of my CitiDiamond at 0% for the life of the balance and can balance transfer on it until Dec., 2007 per Citibank! 

Wow I do feel I can sleep tonight! 

Thanks everyone!!! 

SandyK