Reply
Contributor
Posts: 153
Registered: ‎01-03-2013
0

Debt Paydown plan

Good day everyone:

 

My usual reason for denail & low Fico is high utilazation. Everymonth, I try to pay a fairly substantial amount on my credit cards but this is not working, all my limits are low I alternate the cards and the balances just keep jumping right back up. I am in balance liquidation program with chase, and I have almost paid off that account (2.5 yrs early). That is set payment that I cannot change. But I need to create a plan to pay off these debts to get my util down and score up.

 

Where do i start? I am not new to credit, but now that I am trying to finance my first car I am beginning to realize that my methods are just not working.

 

Any help is appreciated.  Peace & Blessings

***Nothing Beats a try but a Fail*** I refuse to fail, success is the only option.
Valued Contributor
Posts: 1,206
Registered: ‎02-19-2012
0

Re: Debt Paydown plan

Stop using the cards until they are paid in full!! We all ate ramen noodloes at one time


Starting Score: 0
Current Score: TR??FICOEQ ?? FICO
Goal Score: 760

Lowes7,000 Discover More 2800. Jcpenny 6,000
Chase freedom 800 Never take NO for an answer!!
Established Contributor
Posts: 760
Registered: ‎02-11-2012
0

Re: Debt Paydown plan

strictly use cash for living expenses except mortage, etc. No cash in pocket, then no purchases.  As the prior poster said, you may need to change your spending habits. Cut out all NON ESSENTIALS, ie pop, Starbucks, fast food, convenience stores, cable, and yes extras on your cell telephone. Place the charge cards in a plastic bag and put in the freezer or in a worst case senario, cut them up.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Contributor
Posts: 104
Registered: ‎12-01-2012
0

Re: Debt Paydown plan

[ Edited ]

Yep, just like everyone else has said: sacrifice, cut out/down expenditures, pay as much as possible, and finally, patience!

Trust me, I am in the same boat as you! I have about $4700 on 8 cards that are at approx 80% utilization and (besides the obvious BK), I know that high utilization is killing me! BUT, in that point, I try not to stress about it, and just know that every extra dime I get, I just throw it on paying them off. Everybody has a different theory on how to pay off: debt snowball, highest interest rate card pay off first, etc, but at the end of the day, you need to have a plan and stick with it.

 

My goal is to have everything paid off by July/Aug range, and them I am closing 5 of those cards, slowly, over a 3-6 month period of time (a card will be essentially closed every other month, until I am down to 3 cards). Fortunately, I got a bit of good news yesterday; a big contract I've been working on has been accepted, so I will be getting a tidy sum for my business in a few weeks, so that helps, as one of my cards that I have on my personal account is a Cap 1 business card, so I can pay off the $500 I owe on that one (crosses fingers) by the end of the month, so I'll be down to 7 cards! Then, my tax returns will pay off two cards, plus I will throw $500 into my savings, so by March I'll only have 5 cards left to complete. It's a slow process, but I have it all written down, and I will be attacking it viciously!

 

Once all of the cards I'm closing are gone, I'm going to open a secured credit card for about $2,000-$3,000 so that I can have a card with a "normal" limit. I'm only going to keep my Barclay's, either my Cap 1 for business or my personal Cap 1 (which has a higher limit than my business one), and my Orchard Bank. The Cap 1's and Orchard will be the oldest ones on my credit, as I got those 2 months after I filed BK in 2010, so they will help my AAoA.

 

I said ALL of that to say, you aren't alone, and trust me, I don't relish giving up so much, but it's these little sacrifices that will help us sooo much more in the future! So what's so bad about ramen noodles and romaine lettuce salads for 6 months (have to have some veggies Smiley Wink ).
.

 

Good Luck!

Valued Contributor
Posts: 1,206
Registered: ‎02-19-2012
0

Re: Debt Paydown plan

Romaine lettuce try iceberg! LOL


Starting Score: 0
Current Score: TR??FICOEQ ?? FICO
Goal Score: 760

Lowes7,000 Discover More 2800. Jcpenny 6,000
Chase freedom 800 Never take NO for an answer!!
Contributor
Posts: 153
Registered: ‎01-03-2013
0

Re: Debt Paydown plan

Thanks for your replies. Ramen noodles cracked me up.Queen I found your advice to be the most helpful though. I always knew that I was going to have to sit down and take a look at everything and really pen a plan. So I don't know exactly what route I'm going to take but I do know that have to do something because I don't spend that much but I just can't get the balances down. The good news however is that my walmart card is at 0 balance (yaaay me!) its going to stay that way. I think I might have to do a mashup of the small balances and high interest rate might actually be the best plan but I'll keep you guys up to date and let you know what I decide to do. And how it pans out. Trying to card debt free by years end
***Nothing Beats a try but a Fail*** I refuse to fail, success is the only option.
Contributor
Posts: 104
Registered: ‎12-01-2012
0

Re: Debt Paydown plan


annielorie wrote:

Romaine lettuce try iceberg! LOL


Hahaa! I don't prefer iceberg, and where I live, we have Sprout's market, so Romaine cost as much as iceberg! Smiley Happy

 

Contributor
Posts: 104
Registered: ‎12-01-2012
0

Re: Debt Paydown plan

[ Edited ]

BKFireFly wrote:
Thanks for your replies. Ramen noodles cracked me up.Queen I found your advice to be the most helpful though. I always knew that I was going to have to sit down and take a look at everything and really pen a plan. So I don't know exactly what route I'm going to take but I do know that have to do something because I don't spend that much but I just can't get the balances down. The good news however is that my walmart card is at 0 balance (yaaay me!) its going to stay that way. I think I might have to do a mashup of the small balances and high interest rate might actually be the best plan but I'll keep you guys up to date and let you know what I decide to do. And how it pans out. Trying to card debt free by years end

That's a good, and attainable goal to have! That's essentially my goal too; although, I want it to be sooner (around September). I have some really aggressive business goals in the next 2-3 years, so it's critical that I get my personal finances in order and down to as minimal as possible.

 

Like I said before, I can't stand it either, but it's like losing weight. You don't gain 10/20/30 lbs overnight, so it can't come off with a "magic pill" or overnight. It takes time. I can't stand this feeling of owing and bills (yea, I know that's life), and while I know credit is important, I want the least amount of bills possible! In my perfect world, I would pay all my bills at the beginning of the year: rent/mortgage, cell phones, insurance, and be done with it. I'd just need to buy food and gas on a weekly basis. For me, less is more! I give crazy props to those people who have dozens of cards with spreadsheets and such to keep track. I have neither the time, energy, patience or inclination to do all of that!

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.