topic Re: 2019 stupid finance tricks in Personal Finance

2019 stupid finance tricks

tcbofade — Thu, 20 Dec 2018 00:25:55 GMT

Howdy, howdy all. Help me think... again.

2018 got off to a rough start for me credit wise... kidult got herself into a mess and I bailed her out... it involved some new accounts and some maxed out accounts... as we near the end of 2018, my fico 8 scores are they highest they've ever been and climbing.

Credit card debt is NOT zero, but it IS under control and going down every month. I'm still carrying roughly $19k in CC debt, and roughly half is at zero percent interest.

DW is still carrying quite a bit of CC debt. ($50k ish) She's got some average cards, some excellent low rate cards, and some zero percent deals going.

I'd like to spend 2019 moving that debt from HER name to mine so that she would be able to refinance the mortgage early in 2020. (Her credit is flawless, but her DTI sucks!)

Currently, I've got a 714 EX Fico 8 and a 724 TU Fico 8 and I expect both to improve a bit over the next few days. (Only two CC's reporting over 49% utilization, both have been paid down, one cut it's new statement on Monday, the other will cut this evening...)

A personal loan at 11% (local CU) for $25k would pay off her two highest balance/highest rate cards and nearly the third.

I'm preapproved for a 2nd Discover IT (with zero percent on BTs for 18 months) and for Amex Everyday (with zero percent BTs for 15 months.)

Assuming a $10k ish starting line on both, that would move roughly $45k out of her name into mine, AND save us several hundred dollars a month.

I'd leave her zero percent deals alone and we'll pay them off over the course of 2019.

We're stable in our marriage, I'm not concerned with how much debt is in which name, but the mortgage is in her name only and therefore, only HER income will figure into DTI calculations.

Your thoughts?

Please and thank you.

Re: 2019 stupid finance tricks

Remedios — Thu, 20 Dec 2018 01:16:15 GMT

Are you going to apply for cards first to see how much of a loan you're going to need, or the other way around?

Re: 2019 stupid finance tricks

tcbofade — Thu, 20 Dec 2018 01:19:27 GMT

I'm planning to apply for the loan first... as I believe that the CU would frown about the CC applications more than Discover/Amex would complain about the CU application...

Re: 2019 stupid finance tricks

Remedios — Thu, 20 Dec 2018 01:27:02 GMT

Depending on your timing, CU would not even know about amex app for 60 days.
Would it make sense to apply for that one first and see what kind of SL they offer you?

Re: 2019 stupid finance tricks

tcbofade — Thu, 20 Dec 2018 01:53:30 GMT

@Remedios wrote:
Depending on your timing, CU would not even know about amex app for 60 days.
Would it make sense to apply for that one first and see what kind of SL they offer you?

Not sure about that... I know that a new Amex ACCOUNT won't show up for 60 days, but I believe the inquiry would show up immediately.

I don't know that it would matter honestly... I don't believe that a $25k loan and two new cards will be enough to completely buy out DW anyway. The SL on one or both cards may well effect how much I want to use for BT tho.

Re: 2019 stupid finance tricks

kilroy8 — Thu, 20 Dec 2018 01:41:05 GMT

Between the 2 of you, that's 70K in unsecured debt. Even considering only your 19K, I think you are going to tap out soon on what places are willing to extend.

I have no experience or ideas on how to handle that. I do sympathize, as the payments have to be murder.

Re: 2019 stupid finance tricks

tcbofade — Thu, 20 Dec 2018 01:42:40 GMT

@kilroy8 wrote:
Between the 2 of you, that's 70K in unsecured debt. Even considering only your 19K, I think you are going to tap out soon on what places are willing to extend.

I have no experience or ideas on how to handle that. I do sympathize, as the payments have to be murder.

If it helps your head any, it was six figures earlier this year.

It's getting better every month.

Re: 2019 stupid finance tricks

shoegal — Thu, 20 Dec 2018 04:31:21 GMT

Not sure if you have an Amex already but it might be a soft pull if you have one.

My suggestion would be if either of you freelance or have a small biz (even selling on Ebay), you can get an Amex BBP which gives 0% APR on balance transfers and purchases for 15-months, hidden trade line (since it doesn’t report to personal credit), and bigger lines since it’s for business.

Re: 2019 stupid finance tricks

Adkins — Thu, 20 Dec 2018 06:56:41 GMT

I've been following your updates, @tcbofade and I think it's a solid plan. 2019 is going to be awesome for you both!

Re: 2019 stupid finance tricks

Revelate — Fri, 21 Dec 2018 13:17:56 GMT

Seems like a legit plan other than doing the math on the balance transfer offers, depending on the inquiry distribution may all be easy.

The interesting spin on this one which I never really looked into would be for those lenders that traditionally offer 0% APR promotions, what their policy is on CL aggregatation: vis a vis establish a non-trivial tradeline (Amex and Discover both historically have been useful for that), pick up a BT promotion card, and then limit shuffle a bunch onto the new card and transfer yet more to a 0% balance. May be some lender checks on that one, it just struck me as an interesting financing idea for larger amounts of unsecured debt.

Will say though that the easiest way to go sort the DTI issue would be to put you on the mortgage too, but I can understand the reasons for potentially not doing that intellectually anyway. Doubt if I ever did get married that her name goes on the condo for example, though almost certainly would in whatever place we moved to. All the compromises that make relationships work haha.

Big props to you for addressing the credit card debt tcbofade! Know that's been a long term project for you.

Re: 2019 stupid finance tricks

Anonymous — Fri, 21 Dec 2018 16:33:04 GMT

tcbofade, this seems like a good plan. Especially when you have a timeline in mind. Kudos to you for bringing down your debt from 6 figures to what it is now.

I can write from experience, then if you are honest with each other and your goals and timelines remain unchanged. You both can bring down your debt and refinance the mortgage.

Two thing for your to explore this weekend -

- You may be able to add yourself to the mortgage, some lenders will allow for that while refinancing.

- Check out sofi bank and other lenders, sometimes thier debt consolidation/personal loans have good deals. (for the debt that your will not be able to transfer to your new cards)

GL2U!

Re: 2019 stupid finance tricks

tcbofade — Fri, 21 Dec 2018 20:42:59 GMT

@Revelate wrote:

Will say though that the easiest way to go sort the DTI issue would be to put you on the mortgage too, but I can understand the reasons for potentially not doing that intellectually anyway. Doubt if I ever did get married that her name goes on the condo for example, though almost certainly would in whatever place we moved to. All the compromises that make relationships work haha.

We live in Kansas. Both names are on the deed of the house... only SHE has a mortgage.

It's more about creative financing than it is a his/hers thing.

... and thank you!

Re: 2019 stupid finance tricks

tcbofade — Fri, 21 Dec 2018 20:42:35 GMT

@Anonymous wrote:
tcbofade, this seems like a good plan. Especially when you have a timeline in mind. Kudos to you for bringing down your debt from 6 figures to what it is now.
I can write from experience, then if you are honest with each other and your goals and timelines remain unchanged. You both can bring down your debt and refinance the mortgage.
Two thing for your to explore this weekend -
- You may be able to add yourself to the mortgage, some lenders will allow for that while refinancing.
- Check out sofi bank and other lenders, sometimes thier debt consolidation/personal loans have good deals. (for the debt that your will not be able to transfer to your new cards)
GL2U!

I certainly CAN. Her current mortgage lender would like to add me to her existing mortgage... for right now, our credit needs are best served by the mortgage remaining in only HER name.

...and thank you!

Re: 2019 stupid finance tricks

K-in-Boston — Sat, 22 Dec 2018 04:17:28 GMT

@kilroy8 wrote:
Between the 2 of you, that's 70K in unsecured debt. Even considering only your 19K, I think you are going to tap out soon on what places are willing to extend.

I have no experience or ideas on how to handle that. I do sympathize, as the payments have to be murder.

Just to chime in on this, I discovered this forum because DW and I were carrying twice that with an average interest rate of around 20%. We carried that for nearly a decade throwing away thousands of dollars in interest alone every month. With an aged, large, always-on-time file, having enough income to support paying it down, and being able to play the FICO score game to keep the percentages in check, lenders will extend credit. @tcbofade is like my brother from another mother tackling the balance transfer shuffle in 2-player mode.

So the strategy seems okay to me, except that I wonder about the 11% personal loan. You didn't mention how many months that was over, so I would run the numbers to figure out how much interest you would pay over time on that vs shifting it every 12 months from one 3% fee 0% BT card to another. If the difference is negligible I'd go with the loan.

I wish it was a requirement to have your cards listed on this forum so I could make suggestions on cards. Do you already have BankAmericard, EveryDay, and Slate, all of which have a $0 and 0% introductory BT offer? Which CUs are you already with?

Finally, is your existing mortgage really high now? Somehow I don't see mortgage rates doing anything but continuing to climb and climb at this point. So if you already have a decent rate, that part of the plan may not pan out.

Re: 2019 stupid finance tricks

tcbofade — Sat, 22 Dec 2018 13:16:11 GMT

@K-in-Boston wrote:
@kilroy8 wrote:
Between the 2 of you, that's 70K in unsecured debt. Even considering only your 19K, I think you are going to tap out soon on what places are willing to extend.

I have no experience or ideas on how to handle that. I do sympathize, as the payments have to be murder.
Just to chime in on this, I discovered this forum because DW and I were carrying twice that with an average interest rate of around 20%. We carried that for nearly a decade throwing away thousands of dollars in interest alone every month. With an aged, large, always-on-time file, having enough income to support paying it down, and being able to play the FICO score game to keep the percentages in check, lenders will extend credit. @tcbofade is like my brother from another mother tackling the balance transfer shuffle in 2-player mode. Your Mama!

So the strategy seems okay to me, except that I wonder about the 11% personal loan. You didn't mention how many months that was over, so I would run the numbers to figure out how much interest you would pay over time on that vs shifting it every 12 months from one 3% fee 0% BT card to another. If the difference is negligible I'd go with the loan.

I wish it was a requirement to have your cards listed on this forum so I could make suggestions on cards. Do you already have BankAmericard, EveryDay, and Slate, all of which have a $0 and 0% introductory BT offer? Which CUs are you already with?

Finally, is your existing mortgage really high now? Somehow I don't see mortgage rates doing anything but continuing to climb and climb at this point. So if you already have a decent rate, that part of the plan may not pan out.

One issue is that I don't have the income that you do.

Still talking with CU about term... could be 48, could be 60.

We both have Slate, I JUST got the Everyday, and BankofAmerica is not an option... we don't like them, they don't like us.

We've got Mainstreet, Community America, Navy, and PenFed.

Current first mortgage is at 4.5. Current second mortgage is at 10. If mortgage rates stay under 6.5 for another 13 months or so, it would be a win.

We shall see...

Re: 2019 stupid finance tricks

tcbofade — Sat, 22 Dec 2018 14:21:30 GMT

@K-in-Boston wrote:
@kilroy8 wrote:
Between the 2 of you, that's 70K in unsecured debt. Even considering only your 19K, I think you are going to tap out soon on what places are willing to extend.

I have no experience or ideas on how to handle that. I do sympathize, as the payments have to be murder.

So the strategy seems okay to me, except that I wonder about the 11% personal loan. You didn't mention how many months that was over, so I would run the numbers to figure out how much interest you would pay over time on that vs shifting it every 12 months from one 3% fee 0% BT card to another. If the difference is negligible I'd go with the loan.

Good call. Thank you, sir.

See approval forum.