topic Re: Looking for the best way to attack CC debt in Credit Cards

Looking for the best way to attack CC debt

Anonymous — Mon, 28 Apr 2014 20:40:11 GMT

It has been a terrible day. I have to pass on the dream home my wife and I have been pursuing and fell in love with for about a month now because they won't budge on the price at all. With that said, it's an opportunity to get rid of my CC debt with the downpayment money I had saved to use for that particular home, and get my credit score (barely over 620) in a much better situation before we find another home later on down the road.

I know I can really do some damage on getting rid of all CC debt, but I'm not sure how to handle it.

Current FICO Score: 638 (was 615 last month)

CC's:

Chase: Balance: 5300 Limit: 7200

Capital One: Balance: 580 Limit: 2000

Kay Jewelers: Balance: 1321 Limit: 7000

Best Buy: Balance: 749 Limit: 4000

Should I just pay them all off within the next month? Concentrate on one first, then the rest? All are under 30% except for Chase. What would you do? Thanks, you guys/gals are great!

Re: Looking for the best way to attack CC debt

BigBS — Mon, 28 Apr 2014 20:43:11 GMT

If you are looking to maximize your score I would pay off all except the Best Buy card and leave that one between 1 and 9%.

Re: Looking for the best way to attack CC debt

celluloid17 — Mon, 28 Apr 2014 20:45:06 GMT

First and foremost, I'm sorry about your recent disappointment...

What are the interest rates on your cards?

Re: Looking for the best way to attack CC debt

JKSIMMONS — Mon, 28 Apr 2014 20:55:55 GMT

@Anonymous wrote:
It has been a terrible day. I have to pass on the dream home my wife and I have been pursuing and fell in love with for about a month now because they won't budge on the price at all. With that said, it's an opportunity to get rid of my CC debt with the downpayment money I had saved to use for that particular home, and get my credit score (barely over 620) in a much better situation before we find another home later on down the road.

I know I can really do some damage on getting rid of all CC debt, but I'm not sure how to handle it.

Current FICO Score: 638 (was 615 last month)

CC's:

Chase: Balance: 5300 Limit: 7200
Capital One: Balance: 580 Limit: 2000
Kay Jewelers: Balance: 1321 Limit: 7000
Best Buy: Balance: 749 Limit: 4000

Should I just pay them all off within the next month? Concentrate on one first, then the rest? All are under 30% except for Chase. What would you do? Thanks, you guys/gals are great!

I feel your pain. Unfortunaely, my pain is worse because we never get to the bidding process. I just have so much dumb debt that i'm trying to get rid of. I wish my balances were like yours. I know it hurts though. I'd knock out the Chase first and then get rid of as many accounts as I could with the rest. (that's ignoring interest rates)

Chase seems like the most urgent out of that grouping

Good luck on the next offer. It will work out for the best!

Re: Looking for the best way to attack CC debt

DrZoidberg — Mon, 28 Apr 2014 20:57:16 GMT

If you have the chance to PIF on every card then do so. If you don't I would pay off as many full balances as possible and then work on the other last. Snowballing works the best IMO.

Re: Looking for the best way to attack CC debt

Creditaddict — Mon, 28 Apr 2014 21:46:13 GMT

If you can PIF then PIF! don't leave a balance on any of them if you can... people I think get really confused about this 9% balance reporting... that applies to if you make multiple payments a month that you leave 1 balance for the statement and then PIF on the statement... you have been revolving these balances so most likely paying interest so leaving 1 with a balance does not apply right now...

Re: Looking for the best way to attack CC debt

maiden_girl — Mon, 28 Apr 2014 21:56:15 GMT

join the credit card pay off thread here

Re: Looking for the best way to attack CC debt

Anonymous — Mon, 28 Apr 2014 21:57:41 GMT

To be honest, I really don't know the interest rates. I had them saved in my phone notes but that was wiped out two weeks ago.

Why leave just Best Buy at 1-9%?

Re: Looking for the best way to attack CC debt

VirtualCuriosity — Mon, 28 Apr 2014 21:59:30 GMT

It's a very easy answer if you have the money to pay them all off in the next month. And use the experience as a blessing in disquise. Next time, you will have a better score, maybe save more down payment, and in a better position overall. Some day you will look back and say that you both were happy this deal didn't work out because you will have closed on the real dream house. Good luck.

Re: Looking for the best way to attack CC debt

Creditaddict — Mon, 28 Apr 2014 22:00:25 GMT

@Anonymous wrote:
To be honest, I really don't know the interest rates. I had them saved in my phone notes but that was wiped out two weeks ago.

Why leave just Best Buy at 1-9%?

unless you are on 0% promo the 2 store cards will ALWAYS be higher then your 2 credit cards I would almost bet money on it.

I would leave balance on your large CL Chase IF you can't PIF all of them.

Re: Looking for the best way to attack CC debt

Anonymous — Mon, 28 Apr 2014 22:41:19 GMT

The catch is that for a conventional loan with 20% down, the chance of saving up 50,000 for a home is just not going to happen for me. I'd probably have to get an FHA loan which I was approved for at 621, so what would be the difference at say 670 if I paid all these cards off? Are the interest rates even different for scores when it comes to FHA loans?