Help!! On the brink of financial credit destruction!

[Melanie220]

hey guys, Im in need of help of getting my credit cards on track. Long story short, I spent a year rebuilding my credit, my score was 698..(highest score I've had) I got a few credit cards and maintained very well for a few months. I got tempted and couldn't stop applying for cards and before I knew it all of my cards are at or nearly maxed out. Only positive is that I haven't missed a payments but the payments are killing me. Next month I plan to spend at least $3000 paying down some of my debt (about $8000) and slowly work on pulling myself out of the hole. I need advice on the best way to do this. My debt is as follows.....

Kays Jewelers- 2501.12/ 4000 monthly payment 195 (interest sky high)
Discover 1278/1300- mthly pymt- 35
Walmart-988/1000- mthly pymt- 25
Fingerhut-798/1800- mthly pymt- 46.99 (apr very high)
Capital One-725/750- mthly pymt- 25
Marathon Gas Card- 540/750- mthly pymt- 25
Amazon- 560/600 mthly pymt--25
Kohls-488/500 mthly pymt- 25
Abercrombie- 303/550- mthly pymt-25
VS- 191/1300- mthly pymt-25
Target-166/200 mthly pymt-25

I know I should pay off the smaller ones first, but the bigger ones have more apr charges- I pay $55/mth in interest on Kays. Any advice would be helpful. I have a small salary 30k and a car payment so I'm trying to make the best decision possible as far as tackling this goes....I don't wanna get overwhelmed and get so far into debt that bankruptcy is my only option.

[Anonymous]

I think you should pay off the bigger ones first, not the smaller ones. I'd use most of that $3000 and completely pay off Kay Jewelers. That immediately frees up $195 a month in cash flow that can go toward paying down the others.

[gdale6]

The payoff order should be highest interest rates to lowest rates so if Kays is your highest pay it off first. You dont have an unmanagable amount of debt here, I would advise you to cut up and toss the cards until you get this under control. The credit game can be addicting and I know all too well the rush when that "Congratulations" appears on the screen but I have learned that impulse control has to be applied to stay out of credit card hell. I wish you well in getting this under control

[Melanie220]

Thanks guys! I have placed my cards in the freezer in a container of water...I'm really trying to get control of them. I'm thinking I should pay off Kays, VS, Target. That's $200/ mth to go toward others. And hopefully I can come up with another grand or so at tax time to pay off Abercrombie, Kohls, and Marathon.

[RobertEG]

At this point, it appears the goal is to avoid default, and thus credit score damage.

That would seem to mandate paying off the higest monthly payment accts first, thus getting their min monthly payments down as quick as possible, which will hopefully prevent account defaults. 

Paying the highest monthly APR accounts first clearly makes the best financial sense, but would, if payments are that tight, not in my opinion be the best priority as long as chance of not making all monthly payments still exists.

[Melanie220]

I was just thinking this Robert EG. I'm thinking maybe I should pay Kays and Fingerhut- first. Make them my priority payments, then work on paying the remaining bills. Hopefully I'll have a little extra money after paying those off to throw at the other cards.

[Melanie220]

That would take my monthly cc payments from about 480 to 210. And if I pay off VS and Target with my next free paycheck that would take it down to about 160 which would be much easier for me to handle.

[Anonymous]

If I were you I would definitely pay off Kay's and Fingerhut first, they are the largest payments and interest you have.  The others will be much more manageable when you aren't paying $245 a month to just those two. 

[Melanie220]

I totally agree with you DaisyMae. I'm really trying to focused and get control of my fiances.

[Melanie220]

Finances