Close and Pay Off Cards

[RSX]

We do need that confirmed for sure

j was going by his first note that said he would pay $100 to 4 cards and $75 to the rest.  Which implied that the full $733 is available for payoff.  

[Taurus22]

You may also consider this....

Store cards are very restrictive. Looking at his current lineup, personally I would pay off the Ikea, Wayfair (already clean, keep it that way) and Ginny's cards and prepare for them to be first to go. I'm not familiar with the predatory nature of Premier, so I can't comment on that, however, it does have a higher limit than the store cards so maybe it isn't the 1st to the chopping block?

Also, we don't really know the age of these cards. Which is oldest and will affect his AAoA the most? Try not to close the oldest cards yet if possible.

Cards like Discover can be converted to non-secured with some good history. It would be one of the better options to keep, as it is a Prime card. Cap1 can also be upgraded in the future, a Prime card as well, that's a keeper.....(they took the 3x HP hit on it, so hang onto it)  I'm assuming WM card is (Walmart)? If so, I would hang onto the WM, Target and Amazon cards as well. They are the most beneficial store cards on his list.

Lastly, once some of the debt is paid down they need to check their CLI's. What is due for a CLI once the card is balance-free? If they can raise some limits on the "keeper" cards, this would somewhat offset the loss of closing some of the weaker cards. And the overall utilization would benefit from this as well.

[Anonymous]

I had a little research on his Credit Report and found most of these accounts are 10-11 months old and Disco was suppose to graduate him but the thing is he still over 30%, they told him to keep it under 30% but I will push him to not use the card for month or two and see if Disco will graduate him so he can get the $200 deposit back so he can put towards to the highest CL card to pay it down, agree?

Also, other thing, the 2nd month, I think I can have him to pay off WM Card and IKEA then pay maybe $150 on Cap1 QS1 and Primer to get it down then $75 on everything else. Then on 3rd month, keep the same way then move to the next.

I think more likely by May/June, he can get out of debt and bring to 0% by then and I believe he can get CLI by then. 

Hopefully.

[Anonymous]

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@Anonymous wrote:

I had a little research on his Credit Report and found most of these accounts are 10-11 months old and Disco was suppose to graduate him but the thing is he still over 30%, they told him to keep it under 30% but I will push him to not use the card for month or two and see if Disco will graduate him so he can get the $200 deposit back so he can put towards to the highest CL card to pay it down, agree?

Also, other thing, the 2nd month, I think I can have him to pay off WM Card and IKEA then pay maybe $150 on Cap1 QS1 and Primer to get it down then $75 on everything else. Then on 3rd month, keep the same way then move to the next.

I think more likely by May/June, he can get out of debt and bring to 0% by then and I believe he can get CLI by then. 

Hopefully.

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How do you think he can get out of debt by May/June? With his income it's going to be like 9 months (or more depending on interest) to pay everything off and that's assuming his entire income can be put towards the debt in full, something that has yet to be clarified. 

He's already got $425 a month in payments, there isn't much wiggle room to get this paid off quicker other than tackling the highest interest debts first after making sure that the store cards aren't on deferred interest offers to try to cut down on interest being paid. 

[Anonymous]

The only option I can contact my Discover card and request a blank check and I can give him some money say $2,500 and he can towards to the entire balance and his total debt would be cut in half and that where his UTL will bring to at least 40% rather than 66%. This is the way he can possible pay off several cards to get out of interest fees. I want to help him out and get out of debt so he can have more money for himself. Just sayig ..

[RSX]

Some new variables being introduced now, but that's ok

if you are comfortable lending/giving him the money then obviously that will help

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@Anonymous wrote:
The only option I can contact my Discover card and request a blank check and I can give him some money say $2,500 and he can towards to the entire balance and his total debt would be cut in half and that where his UTL will bring to at least 40% rather than 66%. This is the way he can possible pay off several cards to get out of interest fees. I want to help him out and get out of debt so he can have more money for himself. Just sayig ..

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Two important things for him going forward, so that this same situation doesn't reoccur

1. don't use your cards if you can't PIF every month

2. cancel a couple of the AF and/or fee cards when all are paid down. 

[Anonymous]

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@Anonymous wrote:
The only option I can contact my Discover card and request a blank check and I can give him some money say $2,500 and he can towards to the entire balance and his total debt would be cut in half and that where his UTL will bring to at least 40% rather than 66%. This is the way he can possible pay off several cards to get out of interest fees. I want to help him out and get out of debt so he can have more money for himself. Just sayig ..

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If you want to do this, that's fine, I'm just going to caution you that with his income, if there is any emergency he won't be able to repay you so I wouldn't give him more than you are okay with potentially never getting back. Even with the best of intentions, things happen. I get SSDI and am fully aware how costly even the smallest emergency is and my income is almost twice his but I have the same $2K asset limit he does since I have Medicaid. 

[Anonymous]

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@Anonymous wrote:

I had a little research on his Credit Report and found most of these accounts are 10-11 months old and Disco was suppose to graduate him but the thing is he still over 30%, they told him to keep it under 30% but I will push him to not use the card for month or two and see if Disco will graduate him so he can get the $200 deposit back so he can put towards to the highest CL card to pay it down, agree?

Also, other thing, the 2nd month, I think I can have him to pay off WM Card and IKEA then pay maybe $150 on Cap1 QS1 and Primer to get it down then $75 on everything else. Then on 3rd month, keep the same way then move to the next.

I think more likely by May/June, he can get out of debt and bring to 0% by then and I believe he can get CLI by then. 

Hopefully.

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Boy, you sure have his finances well planned out for him!! lol. It's OK, if its you, nothing wrong with that.