Huge CC Debt and still need $25K more[ Edited ]
02-09-2010 08:18 AM - edited 02-09-2010 08:20 AM
I'm near the end of a huge drain on my finances. It was caused by multiple factors:
- I have a small business where the entire industry has been going downhill since late 2000. It has now been hit really hard by the current economic conditions. The gross is currently off 75% from the peak in 2000.
- I have another small business that has been hit by the current economy.
- My ex embezzled money from both business and dug a big financial hole.
- I'm at the end of a 5+ year divorce that has cost a fortune. When filing for divorce, my ex maxed out all accounts to which she had access.
- I've become a single parent as my ex does not contribute to any expenses of my son. I have also had huge legal expenses as a result of her being convicted of criminal charges including Willful Child Cruelty but still wanting conpletely unrestricted visitation.
I started with very good credit and substantial savings but now have substantial debt. I now need $25K more for final property settlement in divorce. My CC are now:
Account Rate% Balance Limit Notes
Amex 15.24 $0 $3,100
BMW 13.24 $0 $15,000
HomeDepot 25.99 $0 $13,500 Store Card
Kohl's 21.90 $0 $1,500 Store Card
Sears MC 14.49 $0 $8,000
HELOC 4.63 $30,000 $30,000
CapOne 5.99 $16,380 $18,000
Chase#1 4.99 $7,450 $13,500 BT Promo Rate, goes to 24.24 2/1/2011
Chase#2 2.99 $18,390 $20,000 BT Promo Rate, goes to 14.24 3/1/2011
BofA 0.00 $30,567 $46,000 BT Promo Rate, goes to 8.49 7/1/2010
CapOneBus 9.99 $3,939 $20,000
Disc 0.00 $11,392 $15,000 0% Short Term Promo, goes to 18.24 4/1/2010
Total Revolving on CRs $118,118 $203,600 58% utilization on Credit Reports
Business Accounts that don't appear on Personal CR
Advanta 10.99 $7,000 N.A. Advanta cancelled all CC so no new charges
Amex-LOC 9.49 $2,700 N.A. Amex cancelled all LOC so no new charges
BofA MC 7.99 $7,100 $7,400
BofA Visa 16.49 $0 $56,000
Lowes Bus 21.00 $0 $7,500 Store Card
TotRevolving $134,918 $274,500
Average Interest Rate on actual balances: 3.91%
(Rate*Balance) / Balance
My current FICO has dropped to 708 and current FAKO from EX is now 744. I'm afraid that any more debt might start the landslide where creditors see too much debt and lower my limits, leading to further AA. As you can see I have a current effective interest rate on this debt of only 3.91%. Charging the $25K on the BofA visa at 16.49% would be a killer from the standpoint of average interest rate AND I would then owe BofA a total of $65K, which seems it would catch their attention.
I'm using the temporary Discover 0$ promo to pay the CapOne Business to $0 by next reporting so I should get a slight score boost when I have one more CC reporting $0.
Any great ideas that I'm missing?