topic Re: Help with Debt in Credit Cards

Help with Debt

Anonymous — Fri, 10 Jun 2016 16:30:49 GMT

Current Cards: (balance/limit)

Amex ED: $750/$1200 ( 800 short to get sign up bonus by mid july)

BOA Travel: $5500/$10k

Cap One QS: $1750/$5k

Chase Freedom: $1650/$2500

SHould I close? Open Slate?

Re: Help with Debt

SouthJamaica — Fri, 10 Jun 2016 16:35:37 GMT

@Anonymous wrote:
Current Cards: (balance/limit)

Amex ED: $750/$1200 ( 800 short to get sign up bonus by mid july)
BOA Travel: $5500/$10k
Cap One QS: $1750/$5k
Chase Freedom: $1650/$2500

SHould I close? Open Slate?

I don't understand your question, and I don't know what your circumstances are.

Re: Help with Debt

ojefferyo — Fri, 10 Jun 2016 16:35:48 GMT

@Anonymous wrote:
Current Cards: (balance/limit)

Amex ED: $750/$1200 ( 800 short to get sign up bonus by mid july)
BOA Travel: $5500/$10k
Cap One QS: $1750/$5k
Chase Freedom: $1650/$2500

SHould I close? Open Slate?

I would stop charging and start paying on the cards. No need to open another or close any.

Re: Help with Debt

Anonymous — Fri, 10 Jun 2016 16:39:25 GMT

haven't been charging lately, cause i am trying to bring down the debt. just not sure if i should transfer chase/cap one to chase slate so i dont have to worry about interest. and i want BOA and AMEX as two main cards

Re: Help with Debt

Anonymous — Fri, 10 Jun 2016 16:59:11 GMT

@Anonymous wrote:
Current Cards: (balance/limit)

Amex ED: $750/$1200 ( 800 short to get sign up bonus by mid july)
BOA Travel: $5500/$10k
Cap One QS: $1750/$5k
Chase Freedom: $1650/$2500

SHould I close? Open Slate?

Chase Slate is notorious for giving small starting limits and with your utilization percentage you may not get enough of a limit to allow for any significant balance transfer. Additional information may help to receive more concise answers, what are your scores, AAoA, any negatives, number of revolving and installment accounts balances and limits.

Re: Help with Debt

jacetx — Fri, 10 Jun 2016 17:01:55 GMT

@Anonymous wrote:
haven't been charging lately, cause i am trying to bring down the debt. just not sure if i should transfer chase/cap one to chase slate so i dont have to worry about interest. and i want BOA and AMEX as two main cards

The problem with applying for a Slate card is that 3 of your cards are over 50% of their limit. You could end up with a tiny limit. Have you considered a consolidation loan from a credit union? Also, trying to reduce debt and meeting a spend for a bonus is not a good combination.

Re: Help with Debt

creditguy — Fri, 10 Jun 2016 17:48:19 GMT

Your utiluzation is probably too high for a slate approval, plus you left out key factors such as your scores and any potential negative items on your CR's. I'd look into a consolidation loan and if that's unsuccessful, just pay off your smaller balances first so you can free up those payments and then apply more to your larger balances. It may take time but it's entirely doable.

Re: Help with Debt

Appleman — Fri, 10 Jun 2016 17:59:20 GMT

You are in a situation that many of us have been in before: spending more than earning.

Top 3 pieces of unsolicited and free advice:

1: Every payment is on-time or early. Late payments kill scores.

2. Set up a budget and stop creating new debt

3. Begin to pay down the debt according to the highest interest rate and/or utilization percentage. (Remember 90% utilization is considered maxxed out).

I recommend that you explore some budgeting software/program to avoid producing more debt. Mint.com or YNAB (you need a budget) are 2 such programs and these are either free or have a free trial period.

I see that you have a spend bonus you are trying to meet (on the Citi card I believe). It looks like you will need to pay down the card to be able to even have enough credit available to meet the bonus. It may be worth it if you were going to spend the $800 on things anyway prior to bonus deadline (say groceries or auto insurance).

Unfortunately you have already been losing the sign up bonus game by paying interest. With budgeting you will be able to put yourself in a situation where you can utilize these offers as a benefit to you and not as a money maker for the bank.

Good luck

Re: Help with Debt

aussiesareforever — Fri, 10 Jun 2016 18:46:28 GMT

Couldn't have said it any better than Appleman!

Re: Help with Debt

Anonymous — Fri, 10 Jun 2016 19:18:15 GMT

Appleman is right on.

Looks like you'll have to start working weekends or get your salary increased--and start eating Top Ramen or beans and rice. I honestly don't undertand why people use over 50% utilization. I only do so if I PIF before statement cut (motive: cashback rewards), or at least get it down to 30%. The entire web preaches on matters like this.

Re: Help with Debt

AverageJoesCredit — Fri, 10 Jun 2016 19:52:56 GMT

Not everyone understands utilization as for some of us were never taught the ins and outs of credit. When i was starting off years ago if i had a card for 1000 i being young and ignorant could and did have it near maxed out. No one ever told me about utilization. Now i know better.Thankfully when you find this site and start learning about it can one finally start to control it or seek help to learn from others.

Re: Help with Debt

UncleB — Fri, 10 Jun 2016 20:09:33 GMT

@AverageJoesCredit wrote:
Not everyone understands utilization as for some of us were never taught the ins and outs of credit. When i was starting off years ago if i had a card for 1000 i being young and ignorant could and did have it near maxed out. No one ever told me about utilization. Now i know better.Thankfully when you find this site and start learning about it can one finally start to control it or seek help to learn from others.

For many years I didn't understand this either, as it's not completely intuitive. Of course everyone know's it is always better to owe less than more, but for the longest time I was content to have small limit cards since I didn't "need" a large credit line. I was unaware that even though I often PIF, the way the data is presented on credit reports made it look like I was perpetually near my limit - basically it looked like I was struggling even though I wasn't.

Responding to various other posts on this thread, I'll also add that just because somebody's running a high utilization doesn't mean that person is a spendthrift or living above his/her means. Even if you have savings, sometimes "life happens" and you simply must carry a balance, and sometime's it's significant.

I'll never judge anybody for carrying a balance without knowing all the details first.

Re: Help with Debt

Anonymous — Fri, 10 Jun 2016 20:12:43 GMT

@Anonymous wrote:
Current Cards: (balance/limit)

Amex ED: $750/$1200 ( 800 short to get sign up bonus by mid july)
BOA Travel: $5500/$10k
Cap One QS: $1750/$5k
Chase Freedom: $1650/$2500

SHould I close? Open Slate?

I hope the OP hasn't left the thread.

Pretty harsh but true commentary.

I think that those are good cards already.....

You are fine where you are..... just pay down these cards and the balance transfer cards will be knocking on your door ...

Of course when you will no longer need them.

You really ask a well timed...great question.

And no damage done.

Sit tight....a slate will be a useless card for you.

Re: Help with Debt

Anonymous — Fri, 10 Jun 2016 23:11:40 GMT

@Anonymous wrote:
@Anonymous wrote:
Current Cards: (balance/limit)

Amex ED: $750/$1200 ( 800 short to get sign up bonus by mid july)
BOA Travel: $5500/$10k
Cap One QS: $1750/$5k
Chase Freedom: $1650/$2500

SHould I close? Open Slate?
Chase Slate is notorious for giving small starting limits and with your utilization percentage you may not get enough of a limit to allow for any significant balance transfer. Additional information may help to receive more concise answers, what are your scores, AAoA, any negatives, number of revolving and installment accounts balances and limit

Very true!! I signed up for the Slate to complete a BT and they only gave me a SCL OF $500. I feel like that was a waste of a HP. I ended up applying for the Cap1 Venture One which has 0% APR for 12 months. My SCL is $7.5k.

Nothing came up when I checked the Cap1 pre-qualification so I was worried that I wasn't going to be approved for the card.

Re: Help with Debt

RonM21 — Sat, 11 Jun 2016 15:27:40 GMT

You need to do what is best for you. Not knowing what Chase would give you vs the debt on the cards, I personally would try to get that. I'd focus on bringing the util down. With that, should also come a slow increase in your scores, the further down you get it.