Best course of action?

[Anonymous]

I'm trying to figure out the best course of action in consolidating some higher APR credit card debt for my wife and I. 

My credit score is 707, hers is 729. Credit utiliztion for both is in the low 60% range. Annual income is about $120k. Our credit scores took a little ding as we sold our former residence and didn't buy a new house, so lost some good debt. We do intend on purchasing a new home, but won't be applying for a loan for probably 4-6 months. 

Right now we have no enticing balance transfer offers. Roughly $40k in interest tied credit card debt. I'm thinking a smart move would be to open a new credit card with a balance transfer promotion. Possibly one card in each of our names. Any thoughts or suggestions? 

[Anonymous]

40K in debt... new CC won't cover that much typically.  Look into a personal loan or start with the highest APR and work your way down the ladder.

[Remedios]

It might, if debt is spread between the two of them and on multiple cards

Or it might not. 

OP, can you provide more info, list your and her cards, include balances and limits, and any negative info either one of you may have  

Also, welcome to the forums 

[Anonymous]

how much do you guys plan to pay down each month?

[Anonymous]

Thanks!

Here is some additional info. Like I mentioned, currently no balance transfer offers that aren't @ full APR. I recognize given the amount it's not likely to do this in on swoop. Just wondering if applying for new cards w/ the intent to transfer is the optimal way to handle.

Here is everything credit card related:

ME:

Capital One Platinum MC: bal $4900 (limit $5,400)
Capital One Quicksilver Visa: bal $0 (limit $3,000)

Citi Diamond Preferred Mastercard: bal $3900 (limit $5400) - currently 0% APR

Chase Slate: bal $3200 (limit $3500)

Discover Cash Back: bal $0 (limit $3300)

Cheveron Visa: bal $0 (limit $7,700)

Bank of America Americard Mastercard: bal $10,700 (limit $11,600)

Citi Visa (closed down): $1000 balance

Experian positive notes: No missed payments, many accounts in good standing, you are not actively looking for credit

Experian negative ntoes: You've made heavy use of your avail revolving credit, remaining balance on mortgage or non morgage installment loans is too high (likely my $41k in student loans), the amount owed on revolving and/or open ended accoutns is too high

HER: 

Chase Freedom Visa: bal $0 (limit $5400)

Discover It: bal $7600 (limit $8400)

Citi Diamond Preferred Mastercard: bal $8300 (limit $13,000) - currently 0% APR

Synchrony Auto card: $0 balance ($6500 limit)

Synchrony Home Furniture: $6200 balance ($9,500 limit)

Bank of America Visa (closed down): $5500 balance

76 Visa (closed down): $3600

Experian positive notes: You have no missed payments on your credit accounts, you have an established credit history, you have many good accoutns in good standing

Experian negative notes: heavy use of available revolving credit, opened a new credit account relatively recently, you have no recent activity from a non mortgage installment agreement 

[Anonymous]

I'd start by each of you contacting discover to see if they have any balance transfer/promotional APR options.  Discover seems tp be pretty loose with 0% offers to people that don't carry much of a balance with them. That could get at least a few thousand into 0 interest or low interest plans if they are available. It won't clear it all up, but every baby step helps.

[calyx]

Since you have an empty Disco, I +1 the suggestion on contacting them.

Common wisdom around here is that you don't want a new account open for the 12 mos prior to apping for a mortgage, so I wouldn't recommend opening a new account.

[xaximus]

Personally, I would start with the lowest amount owed and throw all the spare cash you can to it. Then work your way up the ladder. Many times, with some restructuring, you can easily pay off debt. Cut down on unnecessary expenses (meaning cut down on the coffee runs, cable, remove unnecessary expenses like going out, etc), and increasing your income (take a side job if you can, work extra hours if you get OT, Uber/Lyft/UberEats/etc.). At the end of the day, the goal is to pay off debt, so as long as you can reduce your expenses, the more you can throw at your debt.

[CreditInspired]

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@Anonymous wrote:

Thanks!

Here is some additional info. Like I mentioned, currently no balance transfer offers that aren't @ full APR. I recognize given the amount it's not likely to do this in on swoop. Just wondering if applying for new cards w/ the intent to transfer is the optimal way to handle.

Here is everything credit card related:

ME:

Capital One Platinum MC: bal $4900 (limit $5,400)
Capital One Quicksilver Visa: bal $0 (limit $3,000)

Citi Diamond Preferred Mastercard: bal $3900 (limit $5400) - currently 0% APR

Chase Slate: bal $3200 (limit $3500)

Discover Cash Back: bal $0 (limit $3300)

Cheveron Visa: bal $0 (limit $7,700)

Bank of America Americard Mastercard: bal $10,700 (limit $11,600)

Citi Visa (closed down): $1000 balance

Experian positive notes: No missed payments, many accounts in good standing, you are not actively looking for credit

Experian negative ntoes: You've made heavy use of your avail revolving credit, remaining balance on mortgage or non morgage installment loans is too high (likely my $41k in student loans), the amount owed on revolving and/or open ended accoutns is too high

HER: 

Chase Freedom Visa: bal $0 (limit $5400)

Discover It: bal $7600 (limit $8400)

Citi Diamond Preferred Mastercard: bal $8300 (limit $13,000) - currently 0% APR

Synchrony Auto card: $0 balance ($6500 limit)

Synchrony Home Furniture: $6200 balance ($9,500 limit)

Bank of America Visa (closed down): $5500 balance

76 Visa (closed down): $3600

Experian positive notes: You have no missed payments on your credit accounts, you have an established credit history, you have many good accoutns in good standing

Experian negative notes: heavy use of available revolving credit, opened a new credit account relatively recently, you have no recent activity from a non mortgage installment agreement 

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Hello,

Since you just sold your home, did you make a profit? If yes, I think it would be a good idea to start paying down as many debts as you can to less than 68.9%, then <48.9%, then <28.9%, then <8.9%. The debts I have in mind are as follows with the present UT:

• BOA - 92%
• Cap Plat - 91%
• Chase Slate - 91%
• Disco  - 90%
• Citi Diamond card 1 - 72% (even if it is 0%APR)
• Synchrony 65%
• Citi Diamond card 2 - 64%

Unfortunately, no CC will approve either of you with these cards at this extremely high to maxed out UT. And you may even have a problem getting a consolidation loan. So, if you got monies from the sale of your home, now may be a good time to pay on some of this debt or start paying down the UT as noted above.

Also, what does "closed down" on the 76 Visa, BOA, and Citi Visa mean? Was Adverse Action taken or did you two close them?

IMHO, until this debt load is paid way down, I think your chances of getting a mortgage in 4-5 months is very slim.

GL2U