topic Re: Help!! On the brink of financial credit destruction! in Rebuilding Your Credit

Help!! On the brink of financial credit destruction!

Melanie220 — Thu, 08 Jan 2015 23:59:21 GMT

hey guys, Im in need of help of getting my credit cards on track. Long story short, I spent a year rebuilding my credit, my score was 698..(highest score I've had) I got a few credit cards and maintained very well for a few months. I got tempted and couldn't stop applying for cards and before I knew it all of my cards are at or nearly maxed out. Only positive is that I haven't missed a payments but the payments are killing me. Next month I plan to spend at least $3000 paying down some of my debt (about $8000) and slowly work on pulling myself out of the hole. I need advice on the best way to do this. My debt is as follows.....

Kays Jewelers- 2501.12/ 4000 monthly payment 195 (interest sky high)
Discover 1278/1300- mthly pymt- 35
Walmart-988/1000- mthly pymt- 25
Fingerhut-798/1800- mthly pymt- 46.99 (apr very high)
Capital One-725/750- mthly pymt- 25
Marathon Gas Card- 540/750- mthly pymt- 25
Amazon- 560/600 mthly pymt--25
Kohls-488/500 mthly pymt- 25
Abercrombie- 303/550- mthly pymt-25
VS- 191/1300- mthly pymt-25
Target-166/200 mthly pymt-25

I know I should pay off the smaller ones first, but the bigger ones have more apr charges- I pay $55/mth in interest on Kays. Any advice would be helpful. I have a small salary 30k and a car payment so I'm trying to make the best decision possible as far as tackling this goes....I don't wanna get overwhelmed and get so far into debt that bankruptcy is my only option.

Re: Help!! On the brink of financial credit destruction!

Anonymous — Fri, 09 Jan 2015 00:24:22 GMT

I think you should pay off the bigger ones first, not the smaller ones. I'd use most of that $3000 and completely pay off Kay Jewelers. That immediately frees up $195 a month in cash flow that can go toward paying down the others.

Re: Help!! On the brink of financial credit destruction!

gdale6 — Fri, 09 Jan 2015 00:30:30 GMT

The payoff order should be highest interest rates to lowest rates so if Kays is your highest pay it off first. You dont have an unmanagable amount of debt here, I would advise you to cut up and toss the cards until you get this under control. The credit game can be addicting and I know all too well the rush when that "Congratulations" appears on the screen but I have learned that impulse control has to be applied to stay out of credit card hell. I wish you well in getting this under control

Re: Help!! On the brink of financial credit destruction!

Melanie220 — Fri, 09 Jan 2015 00:35:15 GMT

Thanks guys! I have placed my cards in the freezer in a container of water...I'm really trying to get control of them. I'm thinking I should pay off Kays, VS, Target. That's $200/ mth to go toward others. And hopefully I can come up with another grand or so at tax time to pay off Abercrombie, Kohls, and Marathon.

Re: Help!! On the brink of financial credit destruction!

RobertEG — Fri, 09 Jan 2015 00:39:50 GMT

At this point, it appears the goal is to avoid default, and thus credit score damage.

That would seem to mandate paying off the higest monthly payment accts first, thus getting their min monthly payments down as quick as possible, which will hopefully prevent account defaults.

Paying the highest monthly APR accounts first clearly makes the best financial sense, but would, if payments are that tight, not in my opinion be the best priority as long as chance of not making all monthly payments still exists.

Re: Help!! On the brink of financial credit destruction!

Melanie220 — Fri, 09 Jan 2015 00:46:26 GMT

I was just thinking this Robert EG. I'm thinking maybe I should pay Kays and Fingerhut- first. Make them my priority payments, then work on paying the remaining bills. Hopefully I'll have a little extra money after paying those off to throw at the other cards.

Re: Help!! On the brink of financial credit destruction!

Melanie220 — Fri, 09 Jan 2015 00:49:01 GMT

That would take my monthly cc payments from about 480 to 210. And if I pay off VS and Target with my next free paycheck that would take it down to about 160 which would be much easier for me to handle.

Re: Help!! On the brink of financial credit destruction!

Anonymous — Fri, 09 Jan 2015 00:53:19 GMT

If I were you I would definitely pay off Kay's and Fingerhut first, they are the largest payments and interest you have. The others will be much more manageable when you aren't paying $245 a month to just those two.

Re: Help!! On the brink of financial credit destruction!

Melanie220 — Fri, 09 Jan 2015 01:13:16 GMT

I totally agree with you DaisyMae. I'm really trying to focused and get control of my fiances.

Re: Help!! On the brink of financial credit destruction!

Melanie220 — Fri, 09 Jan 2015 01:13:28 GMT

Finances

Re: Help!! On the brink of financial credit destruction!

cartwrna — Fri, 09 Jan 2015 01:15:39 GMT

Keep on top of it! A new charge off/collection/late will hit your scores hard. I'd do as everyone else has insisted and work on higher balance cards first as to get the payments down. Cut back on anything that isn't a necessity such as fast food (if you eat it), name brand stuff (opt for off brand products to save $), and use all that extra towards the payments.

Re: Help!! On the brink of financial credit destruction!

Melanie220 — Fri, 09 Jan 2015 01:23:33 GMT

That's my plan! I'm going to put every free penny I have towards paying off these cards. I worked so hard to get a good score and I don't want it to go down the drain. As of now I'm sitting at a 642 and I'm sure that's because of my utilization. I have 3 cards that don't have a balance, but the rest are outrageous as you all have seen. Hopefully by March I'll have the two biggest paid and reported to the bureaus and continue to pay on the others

Re: Help!! On the brink of financial credit destruction!

Anonymous — Fri, 09 Jan 2015 01:49:02 GMT

@cartwrna wrote:
Keep on top of it! A new charge off/collection/late will hit your scores hard. I'd do as everyone else has insisted and work on higher balance cards first as to get the payments down. Cut back on anything that isn't a necessity such as fast food (if you eat it), name brand stuff (opt for off brand products to save $), and use all that extra towards the payments.

Or do like I do, and haunt the thrift stores.