topic Re: WHAT CARDS TO PAY in General Credit Topics

WHAT CARDS TO PAY

izach26 — Tue, 20 Dec 2022 18:57:19 GMT

My Partner and I, of 10 years **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624) none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is??

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get

Option 2 - Pay off his and the Largest Card .....Discover\Im authorized user $14,000 Balance

Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

Re: WHAT CARDS TO PAY

Horseshoez — Tue, 20 Dec 2022 19:25:11 GMT

@izach26 wrote:
My Partner and I, of 10 years **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624) none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is??

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get
Option 2 - Pay off his and the Largest Card .....Discover\Im authorized user $14,000 Balance
Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

Congratulations on both your 10 years together and on your bonus. I would argue your best approach would be to pay down the card(s) with the highest interest rates.

Re: WHAT CARDS TO PAY

coldfusion — Tue, 20 Dec 2022 20:24:57 GMT

For a high level view of the general principle typically suggested to follow, search online for the "credit snowball method".

There are 2 main variants:

a) target the accounts with the highest interest rate(s) first

b) target the accounts with the smallest balances first

Personally I prefer the version that targets the highest interest rate but both are valid, and some people are more strongly motivated by seeing the number of accounts with balances reporting shrink.

If your primary goal is to boost scores you may need to also consider the utilization percentages across each of your cards individually.

There is always the risk that you will be balance-chased by 1 or more of your creditors.

Re: WHAT CARDS TO PAY

FireMedic1 — Tue, 20 Dec 2022 21:32:11 GMT

@izach26 wrote:
My Partner and I, of 10 years **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624) none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is??

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get
Option 2 - Pay off his and the Largest Card .....Discover\Im authorized user $14,000 Balance
Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

If you chose this option. Get off the AU card ASAP. Their stats (util) affect you also. One of you can be clean file. Then work on thiers to get it back on track.

Re: WHAT CARDS TO PAY

SouthJamaica — Wed, 21 Dec 2022 00:03:34 GMT

@izach26 wrote:
My Partner and I, of 10 years **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624) none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is??

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get
Option 2 - Pay off his and the Largest Card .....Discover\Im authorized user $14,000 Balance
Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

I would need to know what accounts there are, what the limits are, and what the balances are, in order to make a recommendation. Also if 15k is gross or net, and if gross what the approximate net will be.

Re: WHAT CARDS TO PAY

SlideOrInsert — Wed, 21 Dec 2022 00:41:41 GMT

is their a specific reason you both are looking for a score jump? are you both going to be seeking financing for something major soon?

if not then keep it simple, just pay yours down to all zero except one (AZEO) with a small balance. then apply what ever the total amount you were paying to his largest apr % balance and work down from there.

Re: WHAT CARDS TO PAY

izach26 — Wed, 21 Dec 2022 14:10:29 GMT

Yes, I was going to remove myself off all AU account besides the oldest account - pay off all my balances and the his 1 account that im still listed on - then attack each one of his accounts.

Re: WHAT CARDS TO PAY

izach26 — Wed, 21 Dec 2022 14:17:19 GMT

$15K will be the Net - the accounts are listed belowo

My Accounts are :

Discover	$4,358.00	$4,500.00
Home Depot	$2,517.00	$2,500.00
US Bank	$270.00	$300.00
Contintal Finance Reflex	$470.00	$500.00
Pay Pal	$1,996.00	$1,700.00
Apple Card	$1,335.00	$1,500.00
Blaze	$870.00	$850.00
1st Savings	$830.00	$850.00
Merrick	$500.00	$500.00
Amex	$1,000.00	$1,000.00
Show Mastercard	$0.00	$1,000.00
Lowes	$90.00	$1,037.00

TOTAL $14,236.00 $16,237.00

HIS Accounts are

Discover	$14,000.00	$14,000.00
Citibank	$3,000.00	$3,000.00
Cap One Platinum	$1,726.00	$1,800.00
Cap One Quick Silver	$1,333.00	$1,250.00
Cap One Cash	$740.00	$750.00
Cap One Platinum	$1,000.00	$1,000.00
JFCU	$1,500.00	$1,500.00
Chase	$1,000.00	$1,000.00
Khols	$220.00	$1,000.00
Home Depot	$305.00	$3,500.00
Amazon	$800.00	$800.00

TOTAL: $25,624.00 $29,600.00

Re: WHAT CARDS TO PAY

izach26 — Wed, 21 Dec 2022 14:19:36 GMT

Just want to become more finacally stable - we purchsed a home in 2018 and 3 new cars in 2021 - we we wont be making any large purchases anytime soon

Re: WHAT CARDS TO PAY

mgood — Wed, 21 Dec 2022 16:05:55 GMT

@izach26 wrote:
. . . we we wont be making any large purchases anytime soon

Then "Finances before FICOs."

The most economical way to do it is focus on paying off the accounts with the highest interest first.

But the above-mentioned snowball method can be an easier way to build momentum and see your progress, which can help keep you mentally focused on the goal. Pay off the smallest, then the next smallest, etc.

Re: WHAT CARDS TO PAY

mgood — Wed, 21 Dec 2022 16:15:54 GMT

Looking at your list, you're both over 80%.

This is a major problem. Expect to be balance-chased. Don't worry too much about that. You can rebuild the limits later. You need to reduce the debt NOW.

Re: WHAT CARDS TO PAY

SlideOrInsert — Wed, 21 Dec 2022 18:51:21 GMT

I still say keep it simple and pay down all yours first, then avalanche his.

however, this gives both profiles some relief and a likely score jump. this crosses three utilization thresholds for every account except for his discover (but lowers it below maxed out).

HERS	balance	limit	util	pmt	util
Discover	4358	4500	97	-2243	47
Home Depot	2517	2500	101	-1342	47
US Bank	270	300	90	-129	47
Contintal Finance Reflex	470	500	94	-235	47
Pay Pal	1996	1700	117	-1197	47
Apple Card	1335	1500	89	-630	47
Blaze	870	850	102	-471	47
1st Savings	830	850	98	-431	47
Merrick	500	500	100	-265	47
Amex	1000	1000	100	-530	47
Show Mastercard	0	1000	0	0	0
Lowes	90	1037	9	0	9
TOTAL	14236	16237	88	-7472	42

HIS	balance	limit	util	pmt	util
Discover	14000	14000	100	-1646	88
Citibank	3000	3000	100	-1590	47
Cap One Platinum	1726	1800	96	-880	47
Cap One Quick Silver	1333	1250	107	-746	47
Cap One Cash	740	750	99	-388	47
Cap One Platinum	1000	1000	100	-530	47
JFCU	1500	1500	100	-795	47
Chase	1000	1000	100	-530	47
Khols	220	1000	22	0	22
Home Depot	305	3500	9	0	9
Amazon	800	800	100	-424	47
TOTAL	25624	29600	87	-7528	61

at that point, list all 23 accounts together by apr % and avalanche from there to minimize interest.

Re: WHAT CARDS TO PAY

FireMedic1 — Wed, 21 Dec 2022 17:58:58 GMT

With the graph you posted. Even the 1 AU you want to keep. Ditch for now.

Re: WHAT CARDS TO PAY

coldfusion — Wed, 21 Dec 2022 19:19:47 GMT

@FireMedic1 wrote:
With the graph you posted. Even the 1 AU you want to keep. Ditch for now.

This is the starting point.

Next step is to clean up your own file - you will have enough cash to pay off all your outstanding debt. If you get balance chased so be it; but regardless as to whether you get account closures or CLDs the net outcome will still be that you've reset yourself to a 0% utilization baseline. Just as importantly, the amount of money you were paying each month toward your own debt can now all be redirected toward your partner's debt.

Moving forward use the snowball method to attack your partner's debt although I'd lean in this case toward suggesting using the least-balance-first method to attack because of the number of cards. Something perhaps along these lines:

Have your partner keep making their normal monthly payments on time on all accounts. Put all your money each month toward the 1 card with the lowest balance.

When that card is paid off, your partner will take all of the payment they were making each month toward the card just paid off and instead apply it toward the remaining card that has the lowest balance; you would also apply your money torward that same card. Once that card is paid off, continue up the ladder. There is 1 caveat here in that I would first put $83 of your money toward their Quicksilver card to get its utilization down to 100%.

More specifically, pay off the Kohl's card first, then the Home Depot card, then Capitol One Cash, then Amazon, and so on.

You'd be paying the same amount in total across all cards each month, but as a card is paid off the amount paid each month toward the card with the lowest balance will increase, which is why this is known as the snowball method.

Again, be prepared to be balance chased for at least some of these cards regardless of the method you follow.

Re: WHAT CARDS TO PAY

SouthJamaica — Wed, 21 Dec 2022 20:08:39 GMT

@izach26 wrote:
$15K will be the Net - the accounts are listed belowo

My Accounts are :
Discover $4,358.00 $4,500.00
Home Depot $2,517.00 $2,500.00
US Bank $270.00 $300.00
Contintal Finance Reflex $470.00 $500.00
Pay Pal $1,996.00 $1,700.00
Apple Card $1,335.00 $1,500.00
Blaze $870.00 $850.00
1st Savings $830.00 $850.00
Merrick $500.00 $500.00
Amex $1,000.00 $1,000.00
Show Mastercard $0.00 $1,000.00
Lowes $90.00 $1,037.00
TOTAL $14,236.00 $16,237.00

HIS Accounts are
Discover $14,000.00 $14,000.00
Citibank $3,000.00 $3,000.00
Cap One Platinum $1,726.00 $1,800.00
Cap One Quick Silver $1,333.00 $1,250.00
Cap One Cash $740.00 $750.00
Cap One Platinum $1,000.00 $1,000.00
JFCU $1,500.00 $1,500.00
Chase $1,000.00 $1,000.00
Khols $220.00 $1,000.00
Home Depot $305.00 $3,500.00
Amazon $800.00
$800.00
TOTAL: $25,624.00 $29,600.00

Phase 1: You should pay each of your cards down to 28% of the limit, except that Lowes, US Bank, and Merrick should be paid to zero.

Phase 2: After that, I can't say whether you should be taking care of your own file first or not, because I'm not in your life, but (a) if you want to use what is left over for your partner's file concentrate it on getting maxed out cards down to 78% of the limit and (b) if you want to use what is left over for your file, pay as many accounts as you can down to zero, starting with the smallest balances and working your way up.

Re: WHAT CARDS TO PAY

Vuby22 — Wed, 21 Dec 2022 22:55:38 GMT

My Accounts are :			PAY NOW	88.9% UTI	INT
Discover	4,358	4,500	466	4,001	109
Home Depot	2,517	2,500	357	2,223	63
US Bank	270	300	10	267	7
Contintal Finance Reflex	470	500	37	445	12
Pay Pal	1,996	1,700	535	1,511	50
Apple Card	1,335	1,500	35	1,334	33
Blaze	870	850	136	756	22
1st Savings	830	850	95	756	21
Merrick	500	500	68	445	13
Amex	1,000	1,000	136	889	25
Show Mastercard	0	1,000		889	0
Lowes	90	1,037		922	2
TOTAL	14,236	16,237	1,876	14,435	356

HIS Accounts are
Discover	14,000	14,000	1,904	12,446	350
Citibank	3,000	3,000	408	2,667	75
Cap One Platinum	1,726	1,800	169	1,600	43
Cap One Quick Silver	1,333	1,250	255	1,111	33
Cap One Cash	740	750	92	667	19
Cap One Platinum	1,000	1,000	136	889	25
JFCU	1,500	1,500	204	1,334	38
Chase	1,000	1,000	136	889	25
Khols	220	1,000		889	6
Home Depot	305	3,500		3,112	8
Amazon	800	800	109	711	20
TOTAL	25,624	29,600	3,413	26,314	641

		PAY NOW	5,288

You said that you are not maxxed but most of the cards are maxxed as far as FICO is concerned. If you pay $5300 per above you will see immediate impact as each card reports. (The last column is the likely interest you pay each month [.3/12*balance as a rough estimate] for default or penalty APR on those current balances.)

You cannot use your cards afterwards if you are serious about getting out of this situation. Debit only. I would put the rest of the bonus to yours until you are AZEO and then work on his using snowball. Good luck!

Re: WHAT CARDS TO PAY

RealEstateGuy89 — Fri, 06 Jan 2023 09:04:01 GMT

@izach26 wrote:
My Partner and I, of 10 years **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624) none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is??

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get
Option 2 - Pay off his and the Largest Card .....Discover\Im authorized user $14,000 Balance
Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

If I was in your situation, I would pay off all of your accounts, except for one with a very small balance. After all of it is reported to the credit bureaus within 30 days, your credit scores should rebound nicely.

Then I would shop around and get a good personal loan at a decent rate, and then pay his credit cards down to below 47%. A while back I had a personal loan at LightStream for $20,000 at 7.99% and they are really good to deal with. The approval process was easy as well and I had the money ACH deposited the next day. Then once his balances are lower and report to the credit bureaus, he might be able to go and get a good personal loan to pay off the rest.

Having a personal loan reporting on your credit bureaus will help your scores in the long run. By spring time, you both could be out from underneath the high interest and on the road to recovery. I wish you the very best of luck.