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Close and Pay Off Cards

IrishGuy77
Regular Contributor

Re: Close and Pay Off Cards

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 ...

Message 11 of 28
RSX
Established Contributor

Re: Close and Pay Off Cards

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. 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Apr 12/2021 EX. 747 EQ. 738 TU 759
Inq. EX 4 EQ 2 TU 5 - - CC 5x24, 3x12
Amex BCP $25k - Apple GS $17k - BMW/Elan $5k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $23k - HSBC Gold - $10.5k - Penfed Gold - $12.5k - USBank Cash+ -$20k
Message 12 of 28
SarahJo
Frequent Contributor

Re: Close and Pay Off Cards


@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?



Present Day...Equifax: 771, TransUnion: 793, Experian: 778
Sept. 2016...Equifax: 652, TransUnion: 608, Experian: 597
PenFed CLOC: $500
Message 13 of 28
CardNut
Valued Contributor

Re: Close and Pay Off Cards


@IrishGuy77 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. 

Scores, HPs/24 mos. (updated 01/13/21):
    Experian FICO Score 8 = 828, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 811, 1/24
    Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = $1,388.00

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 14 of 28
RSX
Established Contributor

Re: Close and Pay Off Cards

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 LenderBalanceCredit LimitPercentageMax Amount = 88%First month - $733New AmountNew %
IKEA27530091.67%2643524080.00%
Wayfair05000.00%440000.00%
AMAZON58060096.67%5286052086.67%
Target49650099.20%4406043687.20%
Fingerhut912150060.80%13206085256.80%
Discover19720098.50%1763516281.00%
WM Card12115080.67%132408154.00%
Cap1 QS1504500100.80%4407542985.80%
Dell DFS2067350059.06%3080140192755.06%
Premier Bank710700101.43%61610061087.14%
Ginnys32545072.22%3964028563.33%
        
Total6187890078.27%7832645554267.00%

 

 

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Apr 12/2021 EX. 747 EQ. 738 TU 759
Inq. EX 4 EQ 2 TU 5 - - CC 5x24, 3x12
Amex BCP $25k - Apple GS $17k - BMW/Elan $5k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $23k - HSBC Gold - $10.5k - Penfed Gold - $12.5k - USBank Cash+ -$20k
Message 15 of 28
CardNut
Valued Contributor

Re: Close and Pay Off Cards


@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 LenderBalanceCredit LimitPercentageMax Amount = 88%First month - $733
IKEA27530091.67%26435
Wayfair05000.00%4400
AMAZON58060096.67%52860
Target49650099.20%44060
Fingerhut912150060.80%132060
Discover19720098.50%17635
WM Card12115080.67%13240
Cap1 QS1504500100.80%44075
Dell DFS2067350059.06%3080140
Premier Bank710700101.43%616100
Ginnys32545072.22%39640
      
Total6187890069.52% 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. 

Scores, HPs/24 mos. (updated 01/13/21):
    Experian FICO Score 8 = 828, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 811, 1/24
    Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = $1,388.00

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 16 of 28
Saeren
Mega Contributor

Re: Close and Pay Off Cards

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?





Message 17 of 28
IrishGuy77
Regular Contributor

Re: Close and Pay Off Cards

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

Message 18 of 28
AverageJoesCredit
Mega Contributor

Re: Close and Pay Off Cards


@IrishGuy77 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

Message 19 of 28
SarahJo
Frequent Contributor

Re: Close and Pay Off Cards

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. 



Present Day...Equifax: 771, TransUnion: 793, Experian: 778
Sept. 2016...Equifax: 652, TransUnion: 608, Experian: 597
PenFed CLOC: $500
Message 20 of 28
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