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Debt to Credit Ratio... What should I do?

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kaymom
Contributor

Debt to Credit Ratio... What should I do?

Hello forum,

 

Here I am... I have worked so hard to get my scores up, got them there and now it's my debt to credit ratio. I just need advice on what to do. My car is what taking my ratio through the roof.  My debt is as follows:

 

Car Loan: bal $14,000.00 - $440.00 monthly payments

Loan#1: bal $2,000.00 - $145.00 monthly payments

Loan#2: bal $3,000.00 - $200.00 monthly payments

Loan#3: bal $700.00 - $72.00 monthly payments

CC #1: bal $3,100.00 - $25.00 monthly payments

CC#2: bal $1000.00 - $25.00 monthly payments

CC#3: bal $ 1,500.00 - $50.00 monthly payments

CC#4: bal $600.00 - $25.00 monthly payments

 

I make about $2300.00 a month. I have about $16,000.00 saved.

 

Should I pay my car off or pay the small balances off? I'm confused...

A Fresh Start
Message 1 of 4
3 REPLIES 3
tooleman694
Valued Contributor

Re: Debt to Credit Ratio... What should I do?

This is what I would do..

 

Car Loan: Get this guy refinanced

Loan#1: bal $2,000.00 - Pay off

Loan#2: bal $3,000.00 - Pay off

Loan#3: bal $700.00 - Pay off

 

That would get you a much better DTI ratio. I would leave the credit cards alone.

Message 2 of 4
StartingOver10
Moderator Emerita

Re: Debt to Credit Ratio... What should I do?

What are the credit limits on your cc's?

 

Do you mean Debt to Income (DTI) ratio? or are you concerned about your overall monthly utilization or monthly payments?

 

I agree with the pp that paying off the 3 personal loans is critical. I would also pay off the lowest balance card and leave that at zero (the one at $600) and then see if you can refi with a credit union to drop your car payment substantially. How much is your current vehicle worth?

Message 3 of 4
kaymom
Contributor

Re: Debt to Credit Ratio... What should I do?

I'm concerned about my overall monthly obligations/utilizations because of my income. My car is worth about $12,000.00. Thank you all for your advice, I will definitely get on this.

A Fresh Start
Message 4 of 4
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