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The problem is he is on disability beneifts and he gets only $733. Would this work if he pay $100 down on IKEA, WAL MART, DFS and DISCO then the $75 on everything else.
Then next month, he can start getting more balances lower by putting $100 on ALL each of the accounts until $0. He said he will try not to use it at all.
Just sayin ...
In column E of your sheet, create a % utilization formula
this will make it easier to know which to pay down and by how much
get them all to 89%
then attack the high APR cards while making Minimum+$5 on the rest every month.
@RSX wrote:In column E of your sheet, create a % utilization formula
this will make it easier to know which to pay down and by how much
get them all to 89%
then attack the high APR cards while making Minimum+$5 on the rest every month.
Yes, I agree with this. It is very important to have the cards that are reporting over 100% UTL to be made current and under 100% UTL ASAP. Once this happens it gives a very clear picture as to whether your friend would like to pay via "avalanche" or "snowball" method (use the forum search function and more info will be given) to reduce and pay off. This is obviously a very limited monthly income, you are saying that $733 is all that is received in a month for living or what is available solely for debt payoff?
@Anonymous wrote:The problem is he is on disability beneifts and he gets only $733. Would this work if he pay $100 down on IKEA, WAL MART, DFS and DISCO then the $75 on everything else.
Then next month, he can start getting more balances lower by putting $100 on ALL each of the accounts until $0. He said he will try not to use it at all.
Just sayin ...
That changes the game a bit. Not sure what works better, getting to 89% on all cards first or getting 2 or 3 to 0% and then going for 89% on the rest. Might be able to get 2 or 3 cards to 0 faster than all to 89%. Not sure which is best.
in one month, he can be below 88% on all of them
here is the grid i just worked up for the next months payment - i left some breathing room in case some spend has already happened
After this, we need the Int% for each to see which he should focus on - but i think this is a good step forward
having multiple maxed cards could cause an AA - so i think this is the safest first step, regardless of interest charges
Credit Lender | Balance | Credit Limit | Percentage | Max Amount = 88% | First month - $733 | New Amount | New % |
IKEA | 275 | 300 | 91.67% | 264 | 35 | 240 | 80.00% |
Wayfair | 0 | 500 | 0.00% | 440 | 0 | 0 | 0.00% |
AMAZON | 580 | 600 | 96.67% | 528 | 60 | 520 | 86.67% |
Target | 496 | 500 | 99.20% | 440 | 60 | 436 | 87.20% |
Fingerhut | 912 | 1500 | 60.80% | 1320 | 60 | 852 | 56.80% |
Discover | 197 | 200 | 98.50% | 176 | 35 | 162 | 81.00% |
WM Card | 121 | 150 | 80.67% | 132 | 40 | 81 | 54.00% |
Cap1 QS1 | 504 | 500 | 100.80% | 440 | 75 | 429 | 85.80% |
Dell DFS | 2067 | 3500 | 59.06% | 3080 | 140 | 1927 | 55.06% |
Premier Bank | 710 | 700 | 101.43% | 616 | 100 | 610 | 87.14% |
Ginnys | 325 | 450 | 72.22% | 396 | 40 | 285 | 63.33% |
Total | 6187 | 8900 | 78.27% | 7832 | 645 | 5542 | 67.00% |
@RSX wrote:in one month, he can be below 88% on all of them
here is the grid i just worked up for the next months payment - i left some breathing room in case some spend has already happened
After this, we need the Int% for each to see which he should focus on - but i think this is a good step forward
having multiple maxed cards could cause an AA - so i think this is the safest first step, regardless of interest charges
Credit Lender Balance Credit Limit Percentage Max Amount = 88% First month - $733 IKEA 275 300 91.67% 264 35 Wayfair 0 500 0.00% 440 0 AMAZON 580 600 96.67% 528 60 Target 496 500 99.20% 440 60 Fingerhut 912 1500 60.80% 1320 60 Discover 197 200 98.50% 176 35 WM Card 121 150 80.67% 132 40 Cap1 QS1 504 500 100.80% 440 75 Dell DFS 2067 3500 59.06% 3080 140 Premier Bank 710 700 101.43% 616 100 Ginnys 325 450 72.22% 396 40 Total 6187 8900 69.52% 645
That would work then. And then get a couple quick hitters (small CLs) down to 0 and then tackle the rest based on APR.
I'm understanding it as this person is on SSI which is only $783 a month right now max? If that's the case, I can understand wanting to close cards.
How much of that income can be put towards debt each month?
Yes, his only income is $733 (SSI) and he said he wants to cut down to maybe 2 cards then close some cards.
By the way, why its better to start at 88.9%? I know its best to reach at or below of 30% and that is his goal then reach to 0%
Thanks guys
@Anonymous wrote:Yes, his only income is $733 (SSI) and he said he wants to cut down to maybe 2 cards then close some cards.
By the way, why its better to start at 88.9%? I know its best to reach at or below of 30% and that is his goal then reach to 0%
Thanks guys
Anything over is considered maxed out
I'm sorry if I'm missing something, but if that is the only monthly income aren't there other expenses (i.e. rent, electricity, food, transportation)? I'm just trying to get a clear picture of a realistic monthly budget.