topic Re: Need help out of this mess in Credit Cards

Need help out of this mess

Anonymous — Thu, 28 Sep 2017 18:23:53 GMT

Please resist the urge to be rude - this is hard enough to write as it is.

I've been working hard to improve my credit after making bad decisions in my late teens and early 20's (collection accounts, etc). I didn't use credit cards for a long time. Last year, with credit scores in the 650's, I came to these forums looking to get my score higher. I figured it was time to apply for a couple of credit cards to improve my score. Long story short, some things came up and then I got denied for financial aid for school (I'm an adult nursing student). I put my tuition and some other expenses on my cards. YES this was stupid, but I panicked because I was afraid I was going to get dropped from classes.

Now I have three credit cards that are recently nearly maxed out with very high limits.

Chase Freedom - Balance = 1900, CL = 2000 22% No interest until november

Costco Citi card - Balance = 1800, CL = 2000 22% No interest until december

Amazon Prime Visa - Balance = 3660, CL = 4000 24%

I handle the finances for our family and I haven't discussed this with my husband until I have a plan in place. He is not on any of these accounts. (He will likely kill me).

Other than budgeting better and throwing all of my extra money at these cards, what else can I do?

Should I pay them all down equally to get them away from their limits? Should I pay amazon because it's the one i'm paying interest on? Should I apply for a loan? (my scores dropped significantly last month because of the reported utilization so i'm not sure that's even possible.

Thanks in advance.

Re: Need help out of this mess

HeavenOhio — Thu, 28 Sep 2017 18:30:59 GMT

I can't speak to possibility of getting a loan, so I'll leave that to others.

As far as the cards, I'd get them all down to 89.9% of the limit or below. That way you won't have anything that's maxed. After that, pay two to three times the minimum on the two cards with 0% interest, and throw the rest at Amazon.

How much money to you have each month to put toward this?

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 18:31:09 GMT

Any card with a balance posted of more than 89% is considered maxed out and greatly affects your FICO scores.

Where are you getting your FICO scores from? Website?

Can you engage in any additional "gig economy" work like Uber or Instacart for a few hours a week?

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 18:37:20 GMT

Do you have any money available now? and how much?

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 18:43:24 GMT

I may have some ideas for you on the loan front, why were you denied for them this semester?

Re: Need help out of this mess

MrDisco99 — Thu, 28 Sep 2017 19:05:32 GMT

Put all your energy toward the Amazon card. Always pay down (higher) interest balances first.

And yes pay at least the minimum on the other two. Don't get lates on your reports.

Interest is your worst enemy right now. Knock those high interest balances down as best you can. If you can score a loan or balance transfer that may be a good idea but someone with more experience would need to help with that.

No judgement. Life happens.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 19:09:44 GMT

@Anonymous wrote:
Please resist the urge to be rude - this is hard enough to write as it is.

I've been working hard to improve my credit after making bad decisions in my late teens and early 20's (collection accounts, etc). I didn't use credit cards for a long time. Last year, with credit scores in the 650's, I came to these forums looking to get my score higher. I figured it was time to apply for a couple of credit cards to improve my score. Long story short, some things came up and then I got denied for financial aid for school (I'm an adult nursing student). I put my tuition and some other expenses on my cards. YES this was stupid, but I panicked because I was afraid I was going to get dropped from classes.

Now I have three credit cards that are recently nearly maxed out with very high limits.

Chase Freedom - Balance = 1900, CL = 2000 22% No interest until november
Costco Citi card - Balance = 1800, CL = 2000 22% No interest until december
Amazon Prime Visa - Balance = 3660, CL = 4000 24%

I handle the finances for our family and I haven't discussed this with my husband until I have a plan in place. He is not on any of these accounts. (He will likely kill me).

Other than budgeting better and throwing all of my extra money at these cards, what else can I do?

Should I pay them all down equally to get them away from their limits? Should I pay amazon because it's the one i'm paying interest on? Should I apply for a loan? (my scores dropped significantly last month because of the reported utilization so i'm not sure that's even possible.

Thanks in advance.

When it comes to paying down, do the Amazon one first since the interest is there. I am not a loan expert but I am going to say it will probably be difficult to get any type of credit, loan or otherwise, with your utilization the way it is. Does your husband have a higher credit card that maybe has a 0% you can BT those limits to?

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 19:13:39 GMT

The good news is once your utilization goes down your scores will rebound. I would discuss this with your husband. If you are hiding something from him it is only going to add to your stress. Paying tuition is a valid reason for debt so I wouldn't be too hard on yourself. I know you said you got declined for financial aide. Did you apply for a student loan? That would probably be your best bet if you could get one. Good luck.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 19:16:28 GMT

Thanks everyone. I didn’t realize there was an actual percentage that correlated to “maxed out”. I’ll work on getting them under 89% ASAP. I’m paid hourly right now so I’m going to try to pick up some OT shifts for the next few months. I have ~$500 a month that I can designate to the cards as of right now.

My mistake was that I did not apply for a student loan, I applied for financial aid/grants. Initially I was told I may qualify for “some aide” but when it was all in, they said we made too much money. I could apply for a student loan now, since I still have 3 semesters left, but I don’t know if I could use that to pay bills as well as tuition since I’ve never had a loan like that before.

Re: Need help out of this mess

MrDisco99 — Thu, 28 Sep 2017 19:24:01 GMT

Its been a while for me but from what I remember student loans go toward tuition first and if there's any left over they cut a check to you. And there was one occasion I was late and got the loan after tuition was paid and the whole thing was sent to me. I think you can still do that. Student loans are usually pretty easy to get approved for as well. Just remember you have that obligation to deal with when you're done with school.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 19:38:42 GMT

Pull out a student loan you will qualify just make sure it's a federal loan and not a private student loan. Ca easily pay off the cards and you won't owe the money back until after you graduate. Also hiding debt/finances in my experience working with couples seeking counseling usually leads to serious problems in the relationship. I would be uil front with your spouse.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 19:44:04 GMT

Take it from someone who compulsively hid from - lied to their spouse about serious matters out of fear, panic and not knowing what to do: the first thing you need to do is stop reading this site and sit him down to talk. Won't be fun, likely be painful, but it'll hurt a lot less the sooner you tell him.

Can't tell you how much trouble I got myself in with my wife for hiding and covering up serious but not guaranteed marriage ending mistakes. It was the cover up that nearly ended it. Onc you've done that come back and soak in the advice, conference with your husband and outline a plan. Good luck, keep your head up - you'll get through this.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 20:22:34 GMT

@Anonymous wrote:
Take it from someone who compulsively hid from - lied to their spouse about serious matters out of fear, panic and not knowing what to do: the first thing you need to do is stop reading this site and sit him down to talk. Won't be fun, likely be painful, but it'll hurt a lot less the sooner you tell him.

Can't tell you how much trouble I got myself in with my wife for hiding and covering up serious but not guaranteed marriage ending mistakes. It was the cover up that nearly ended it. Onc you've done that come back and soak in the advice, conference with your husband and outline a plan. Good luck, keep your head up - you'll get through this.

Are you serious? Stick with the questions the OP asked. She didn't ask for marital advice.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 20:48:36 GMT

Yes it is for other bills with going to school, you may be able to borrow for this semester and pay off the portion you charged for books and tuition and still have soem left over. You will need to talk with financial aid to see about demonstraiting the need and how it will be paid. The school may send the payment by check directly. They will know what to do.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 21:37:46 GMT

@Anonymous wrote:
@Anonymous wrote:
Take it from someone who compulsively hid from - lied to their spouse about serious matters out of fear, panic and not knowing what to do: the first thing you need to do is stop reading this site and sit him down to talk. Won't be fun, likely be painful, but it'll hurt a lot less the sooner you tell him.

Can't tell you how much trouble I got myself in with my wife for hiding and covering up serious but not guaranteed marriage ending mistakes. It was the cover up that nearly ended it. Onc you've done that come back and soak in the advice, conference with your husband and outline a plan. Good luck, keep your head up - you'll get through this.
Are you serious? Stick with the questions the OP asked. She didn't ask for marital advice.

Actually it makes sense donny10, her husband might have a better solution and might be able to help her better than us. Only they both know their budget and finances. AND it was a suggestion, no one is making her do anything. Let's not close another thread for going off topic, i can see it slowly heading on that direction. It is obvious that slightlyremoved has been there/done that, and that is why people come here for; to get advised from people who knows better so others don't make the same mistake.

OP - Just like anything else, your husband will eventually find out, you think? I was asking you how much money you have available now so we can figure out what you can attach first. You already got advice on that (Amazon first).

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 21:38:51 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Take it from someone who compulsively hid from - lied to their spouse about serious matters out of fear, panic and not knowing what to do: the first thing you need to do is stop reading this site and sit him down to talk. Won't be fun, likely be painful, but it'll hurt a lot less the sooner you tell him.

Can't tell you how much trouble I got myself in with my wife for hiding and covering up serious but not guaranteed marriage ending mistakes. It was the cover up that nearly ended it. Onc you've done that come back and soak in the advice, conference with your husband and outline a plan. Good luck, keep your head up - you'll get through this.
Are you serious? Stick with the questions the OP asked. She didn't ask for marital advice.
Actually it makes sense, her husband might have a better solution and might be able to help her better than us. Only they both know their budget and finances. AND it was a suggestion, no one is making her do anything. Let's not close another thread for going off topic, i can see it slowly heading on that direction.

OP - Just like anything else, your husband will eventually find out, you think? I was asking you how much money you have available now so we can figure out what you can attach first. You already got advice on that (Amazon first).

The OP asked specific questions. And the answers have been great!

That's what the "relationships and money" forum is for. It won't go in that direction if we continue to stay "on topic".

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 21:52:25 GMT

@Anonymous wrote:

Are you serious? Stick with the questions the OP asked. She didn't ask for marital advice.

I notice you like to play the forum police a lot. Let people post their opinions, that's what a forum is for. I also agree that letting your spouse know will possibly open many solutions you didn't think of, and relieve a lot of stress.

Re: Need help out of this mess

K-in-Boston — Thu, 28 Sep 2017 22:00:56 GMT

No judgment at all here. My getting into massive debt was due to the combination of mostly living on credit cards because I was making too much to qualify for most loans when I went back to school as an adult, and then the markets crashing with the banks then rate jacking and balance chasing. I've been there (and I'm still there to some extent but making big progress) so I know it's stressful.

The good news is that you have $500 a month to throw at the balances. Provided you don't continue to use the cards, you could still pay all 3 off in less than 2 years even with high interest. I would certainly get the Chase and Citi cards paid down below $1750 immediately and throw everything you can at that Amazon card, while paying 2-3 times the minimums on the others. Once you get your utilization under control, depending on your scores you could then evaluate whether a balance transfer card or consolidation loan may be the right move.

Crazy question, when you log into your Citi account, is there a link for Request Credit Line Increase? Check it to see if it says something like "It's easy to see if you're eligible for a credit line increas. No credit bureau report will be requested..." That would be a soft pull trhat won't affect your credit, so you have nothing to lose but even a minor credit line increase would help you tremedously right now. High utilization kills credit scores.

As for the student loans, as was my case you won't qualify for Perkins loans or subsidized federal loans, but you can certainly qualify for PLUS loans - which is more than the amount of tuition and fees. Just make sure you take a look at the interest rates (private student loans are readily available but may not always be a good option), and make a plan to pay them off as the amounts can multiply dramatically over the course of 10-15 years.

Best of luck!

Re: Need help out of this mess

Loquat — Thu, 28 Sep 2017 22:01:45 GMT

Let's please stick to the topic at hand and offer advice to the OP if you are so inclined. The subtle jabs at one another isn't necesssary and only distracts from the topic. Thank you for your understanding.

Re: Need help out of this mess

Anonymous — Thu, 28 Sep 2017 22:05:07 GMT

@K-in-Boston wrote:
No judgment at all here. My getting into massive debt was due to the combination of mostly living on credit cards because I was making too much to qualify for most loans when I went back to school as an adult, and then the markets crashing with the banks then rate jacking and balance chasing. I've been there (and I'm still there to some extent but making big progress) so I know it's stressful.

The good news is that you have $500 a month to throw at the balances. Provided you don't continue to use the cards, you could still pay all 3 off in less than 2 years even with high interest. I would certainly get the Chase and Citi cards paid down below $1750 immediately and throw everything you can at that Amazon card, while paying 2-3 times the minimums on the others. Once you get your utilization under control, depending on your scores you could then evaluate whether a balance transfer card or consolidation loan may be the right move.

Crazy question, when you log into your Citi account, is there a link for Request Credit Line Increase? Check it to see if it says something like "It's easy to see if you're eligible for a credit line increas. No credit bureau report will be requested..." That would be a soft pull trhat won't affect your credit, so you have nothing to lose but even a minor credit line increase would help you tremedously right now. High utilization kills credit scores.

As for the student loans, as was my case you won't qualify for Perkins loans or subsidized federal loans, but you can certainly qualify for PLUS loans - which is more than the amount of tuition and fees. Just make sure you take a look at the interest rates (private student loans are readily available but may not always be a good option), and make a plan to pay them off as the amounts can multiply dramatically over the course of 10-15 years.

Best of luck!

Totally agree with this!