topic Re: Need solution for $30K credit card debt in multiple cards. in General Credit Topics

Need solution for $30K credit card debt in multiple cards.

Anonymous — Tue, 02 Jan 2018 21:51:02 GMT

Hi,

I am having a slightly less than $30K credit card debt accross 4 different cards with APR (Two18%, 16%, & 0% until the next 8 months). I would like to take a major step to finish this nightmare. What are the steps that I can take to pay off my debts? Do "loans", "peer to peer", etc really help? or should I transfer balance to another 0% APR cards? Will all these hurt my credit score?

Thanks.

Re: Need solution for $30K credit card debt in multiple cards.

digitek — Tue, 02 Jan 2018 22:19:40 GMT

Hi jay,

A $30k credit card debt is pretty substantial. Whether you do debt consolidation, a balance transfer, or bankruptcy I can assure you that a very strict budget will be a good starting place. It can feel good to get it all down on paper and having a plan to follow.

I don't have much advice beyond that, other people might have more experience, but I just wanted to say I have a lot of respect for you for trying to take on that debt and asking for help, and to start with a very strict budget.

You can do it, others on here have come back from worse!

Re: Need solution for $30K credit card debt in multiple cards.

HeavenOhio — Tue, 02 Jan 2018 22:20:13 GMT

Could you list your cards, including the bank, current balance, limit, and APR? That will help people here know whether you're in a postion to apply for a loan or another card — or a at least to let you know which balances you should attack first or which banks might be more tolerant of long paydowns.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Tue, 02 Jan 2018 22:28:58 GMT

Many unsecured loans will be over 18%. Do you own a home that could qualify for a Heloc? Anything of value you can sell?

What is your income and list of expenses. This may be a long paydown

Re: Need solution for $30K credit card debt in multiple cards.

CreditCuriosity — Tue, 02 Jan 2018 23:05:23 GMT

Certainly doable on most any income of say 50k+.... Will it hurt if you are a lower earner YEP. Nothing is tangible is free in life and gotta be paid now or later. Best of luck to you and I am sure others will offer some good advice if you are willing to listen and answer their questions. Depending on income is whether another job is in order such as uber driving at night and the amount of cuts you need to pay it down all the quicker.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Wed, 03 Jan 2018 00:04:22 GMT

Hi all,

Thanks for the replies.

Here are the credit card breakdowns:
- BOA Visa $6,500 (APR 18%-limit $7,300)
- BOA Visa $9,500 (APR 18%-limit $13,000)
- BOA Visa $6,500 (APR 17%-limit $6,100)
- Citi Master Card $5,000 (0% until next 8 month-limit $5,300)

My salary is $75K (single income) and my total monthly expense is about $3k ($800 mortgage, $300 HOA, $1,000 children tuition, etc) .

Thank you.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Wed, 03 Jan 2018 00:24:46 GMT

I am baffled that you have 3 bank of americards

Anyway...

3k expense on 6k monthly income? We get you paid off in nine months (pay your minimum payments every month except for where noted to pay more)

3000 IS JUST A ROUNDED FIGURE, MAKE SURE TO MAKE ALL FOUR CARDS MINIMUM PAYMENTS IN THE MEANTIME!!!!

I am aware some interest will accrue. We dont care about that right now. We also do not get any new credit or charge anything else to the cards. You are not to use these cards for nine months, put them in the safe or something. I am serious. The last thing you want to do is apply for more credit and dig your hole deeper.

The name of the game, since you have a good solid income, is to pay off what you owe, right here right meow.

Start with the card thats overlimit, hit that with 3k out the gate. First month

BOA Visa $6,500 (APR 18%-limit $7,300)
- BOA Visa $9,500 (APR 18%-limit $13,000)
- BOA Visa $3,500 (APR 17%-limit $6,100) <------------------------------- pay 3k here
- Citi Master Card $5,000 (0% until next 8 month-limit $5,300)

Then hit the lowest balance card, the citi card, and get that under 40% util next month. Second month.

BOA Visa $6,500 (APR 18%-limit $7,300)
- BOA Visa $9,500 (APR 18%-limit $13,000)
- BOA Visa $3,500 (APR 17%-limit $6,100)
- Citi Master Card $2,000 (0% until next 8 month-limit $5,300) <---- pay 3k here

Then, attack the highest balance card with three payments over three months and drop it to 500. Third Fourth and Fifth month

BOA Visa $6,500 (APR 18%-limit $7,300)
- BOA Visa $500 (APR 18%-limit $13,000) <----- pay 3k here 3 times
- BOA Visa $3,500 (APR 17%-limit $6,100)
- Citi Master Card $2,000 (0% until next 8 month-limit $5,300)

Repeat last step with the next highest balance (two payments) Sixth and Seventh month

BOA Visa $500 (APR 18%-limit $7,300) <-- pay 3k here twice
- BOA Visa $500 (APR 18%-limit $13,000)
- BOA Visa $3,500 (APR 17%-limit $6,100)
- Citi Master Card $2,000 (0% until next 8 month-limit $5,300)

Note you can alternate the above two cards and pay one back and forth, the object is to pay them both in five months/five payments.

Then go back and hit the Citi card and finish it (since you have 1000 left over, take out the remaining balance on the first card, and the odd 500 on the third, leave the 500 on the highest limit, youll see why in a minute)

Eighth month

BOA Visa $0 (APR 18%-limit $7,300)
- BOA Visa $500 (APR 18%-limit $13,000)
- BOA Visa $3,500 (APR 17%-limit $6,100) <---- pay 3000 here
- Citi Master Card $0 (0% until next 8 month-limit $5,300)

You are at nine months now, hit the last BoA card with your last 3k and youre done. (or once and carry a 500 AZEO balance)

BOA Visa $0 (APR 18%-limit $7,300) <---- pay 500 here
- BOA Visa $500 (APR 18%-limit $13,000)
- BOA Visa $0(APR 17%-limit $6,100) <--- pay 500 here
- Citi Master Card $0 (0% until next 8 month-limit $5,300) <---- pay 2000 here

You want to keep a small balance on your highest limit card (All Zero Except One), to maximize your score. 500/13000 is well below 10 percent, so feel free to leave this balance (minimum payments only) on there for as long as you wish, make sure you dont late payment it.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Wed, 03 Jan 2018 00:27:09 GMT

If you find you have more expenses than the 3k quoted, adjust your payments accordingly but use the same strategy. It will take longer the less you can put up a month, but you will dig out of the hole, I promise you.

Re: Need solution for $30K credit card debt in multiple cards.

woodyman100 — Wed, 03 Jan 2018 00:45:04 GMT

@Anonymous wrote:
If you find you have more expenses than the 3k quoted, adjust your payments accordingly but use the same strategy. It will take longer the less you can put up a month, but you will dig out of the hole, I promise you.

Double dittos!

Re: Need solution for $30K credit card debt in multiple cards.

blondy250 — Wed, 03 Jan 2018 00:57:44 GMT

There is no way a person making 75,000 a year takes home 6K a month. After taxes maybe 4K a month, OP please share your monthly take home if possible, other then that the previous payoff suggestions hold a lot of merit.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Wed, 03 Jan 2018 01:06:51 GMT

Thanks again everyone for the replies.

I receive slightly less than $2,200 per bi-weekly paycheck.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Thu, 04 Jan 2018 07:49:52 GMT

Hi TheCeditGame,

Thanks for the thorough step by step guide. I really appreciate it. It all make sense to me. However I don't really have the extra $3K each month to solve this. The most I can allocate each month is probably $1K or slightly less. Do you think loan will be better for this situation or ...?

Thanks.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Thu, 04 Jan 2018 08:47:08 GMT

IMO, its best to apply for a personal loan or 0% APR balance transfer card. See if you prequalify for Discover, Citi Simplicity etc. Also, try to pay your balance down each week.. or biweekly with your paycheck first and whatever's left from your paycheck you save. I was in the same boat as you with a little less debt at 15K at the start of 2017 and now I'm debt free with excellent scores. You can do it

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Thu, 04 Jan 2018 13:04:26 GMT

Good advice on all the above. I have a lot less revolving debt, fortunately, on a very solid revolving-credit total of over $43k, but one of my resolutions for 2018 (if I can keep it ) is to start reducing it. Successfully apped for a new 0% BT card (Cap 1 QS Rewards Visa) with a better APR than my older cards, so I'm planning to transfer at least one balance to that card once I get it and figure out how to do it right, as well as transfer my remaining secured-card balance to a lower-interest card, then close it out and use the deposit to pay down/pay off at least one other card. Good luck!

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Thu, 04 Jan 2018 13:18:45 GMT

You say you can't put $3000 a month towards but but can put $1000 -- are you sure about the "can't" part?

If you have things like cable TV or restaurant/dining budgets, slice those to $0 until you're paid off. New clothes or entertainment slice to $0. Downgrade your phone service, too.

More folks build debt in nickels and dimes because the small things add up really quickly.

I'd suggest doing my reverse budget going back 6 months on ALL statements and highlighting everything non-essential and then erasing that from future statements by not spending it. I bet if you reverse budget you'll find you can put $2000 a month towards your debt!

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Fri, 05 Jan 2018 00:28:23 GMT

As ABCD said cut back on any extras. Cut the cord on television, internet, cell phone plan. A $30K signature loan @ 15-18% for debt consolidation is a horrible idea. It would be $713-$760 per month for 5 years and no room to wiggle. Another trap of a signature loan is it allows cardholders the ability to run up more debt.

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Fri, 05 Jan 2018 08:29:11 GMT

Hi,

If you allocate $350, $350 monthly for the 18% CC, and $300 for the 17%, and $75 for the no interest CC. You will pay all the card by May 2020. You will end up paying $6095.25 in interest which is roughly 20% over the three years which equals 6% annualy. So, unless if you can find a personal loan which APR is 5% over 3 YEARS, then paying it off monthly is your best shot.

Heres an excel showing the plan to pay:

Re: Need solution for $30K credit card debt in multiple cards.

Anonymous — Fri, 05 Jan 2018 08:41:11 GMT

$350 For 21 Months Interest $1,087.50

$450 For 29 Months Interest $3,139.50

$300 for 21 Months Interest $885.00

$160 for 30 Months Interest $983.34

Re: Need solution for $30K credit card debt in multiple cards.

JaeJae12 — Fri, 05 Jan 2018 11:10:22 GMT

Just want to remind you that you should put the cards away for now, so you don't spend more on them...and use cash only if possible.

Re: Need solution for $30K credit card debt in multiple cards.

SouthJamaica — Fri, 05 Jan 2018 16:04:50 GMT

@Anonymous wrote:
Hi TheCeditGame,

Thanks for the thorough step by step guide. I really appreciate it. It all make sense to me. However I don't really have the extra $3K each month to solve this. The most I can allocate each month is probably $1K or slightly less. Do you think loan will be better for this situation or ...?

Thanks.

J.

IMHO the only kind of loan that would help, rather than hurt, your situation would be a credit union loan.