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Posts: 1,669
Registered: ‎05-24-2007
Huge CC Debt and still need $25K more
[ Edited ]

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
 
Personal Accounts:        
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 
       
Business Accounts:
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?

Message Edited by GregB on 02-09-2010 08:20 AM