Closed CCs, High Util on all or High Util on highest to lowest Interest Rate?

[Anonymous]

Hi,

I'm trying to raise our scores, which are currently, DH Scores EQ/EX/TU 546/520/526, My Scores EQ/EX/TU 559/573/577.  Here are my accounts in question:

NAMES                                OPEN    DOLA        BAL/CL         MNTHLY      LAST      WHO             APR

                                                                                                PMT           LATE

Closed CC  WashMt/Prov        10/98     7/07     1726.82/1191.00      53.00            6/07          DH               27.49%

Closed CC  Sears/CBSD            6/01     7/07        543.42/300.00      13.00           11/06         Me                ??%

CC Cap 1                               11/00     7/07        289.00/300.00      15.00            1/07        Joint               29.49%

CC Cap 1                                9/01      6/07        853.00/800.00      23.00           10/06         Me               29.49%

CC First Premier                      7/04      6/07        325.00/400.00      20.00                            Me               23.90%

CC HSBC NV                         6/04      6/07        308.00/300.00      15.00                            Me               29.49%

CC HSBC NV                         6/06      6/07        278.00/300.00      16.00                            Me               30.49%

My question is, would it be best to pay off the Closed CCs first or try to get them so that the Util is equal on all and then keep reducing equally? 

Thanks in advance!

[fused]

How much cash do you have on hand to pay these balances down?

[Anonymous]

I don't have one lump sum but over the next 4.5 months, I will have $2400, about $600 a month extra, of course, that eliminates the possiblity of Christmas, but, we're trying to set priorities, I just don't know if the kids will understand.

[Anonymous]

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wendy125 wrote:

I don't have one lump sum but over the next 4.5 months, I will have $2400, about $600 a month extra, of course, that eliminates the possiblity of Christmas, but, we're trying to set priorities, I just don't know if the kids will understand.

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How many kids do you have, and how old? If they're older, just tell them the facts, that you're trying to get your finances taken care of, which will be better for your family in the long run. Then maybe have them each list a couple of reasonably priced things they would really like and you pick out one of the girfts for each of them. And if they're younger, just get them a bunch of inexpensive gifts that suit them - maybe a set of markers, paper, stickers, etc if they're artsy; jumprope and rubber balls if they're athletic, etc. Start now looking for things to use as stocking stuffers - inexpensive hairclips/barrettes, stuff from the dollar store, packs of gum, a special ornament, etc. I'd even give them homemade "coupons" that can be redeemed, like "get out of doing your chores" or "stay up late" or "rental movie of your choice", that sort of thing. Do your or your DH's parents/siblings buy you gifts? Perhaps you could ask them NOT to give you a gift and instead focus on the kids?

Focus on the inexpensive things you can do as a family for the holiday season: have a family movie night with favorite Christmas movies (checked out from the local library if possible), read Christmas books (again from the library), go sledding, do an advent calendar, see if there are any community activities to take part in (caroling, ice skating, driving through neighborhoods that are decorated), have kids help decorate for the holidays, make inexpensive Christmas cards to send out, etc. You can still have a great Christmas on a limited budget - just be creative and start planning now!

[mborgens]

"would it be best to pay off the Closed CCs first or try to get them so that the Util is equal on all and then keep reducing equally?"

There isn't any science to my answer, just an emotional, anecdotal response. We focused on the highest percentage, lowest balance card. The other cards received the minimum payment plus a couple of dollars.

Every time we payed off a card, we celebrated with the credit card payoff dance! If your kids are old enough to start teaching about credit and finances, include them.

Once a card was payed off, we took the amount that went towards the payed off card and applied that amount plus what we were are ready paying to the next card. Once things started rolling, it went pretty quickly.

We are now well over 10 years without any credit card revolving balances. It took a few years after we went debt free, but we finally realized the money that was going to credit card finances could go towards retirement.

[Anonymous]

Wendy,

Sorry to hear your story, it sounds like mine, no Xmas last year, just love and for us that had to be enough.  Xmas is now 4 months away.  Find the stores that have layaway plans and put your kids up a small layaway. Maybe Walmart, they have that option.  Take the kids there and let them find one thing that they want and put it in the layaway. You only have to make $20 or $30 payments, depending on what you have in layaway and then get it out.  Walmart is pretty good about the length of time you can keep stuff in the layaway.  You probably already have Xmas decorations and if not, use this opportunity to make them together.  Still decorate and celebrate the holiday and let them know they are only going to get that one thing but they will have a bigger Xmas after Xmas once we pay off all the bills or the debt or some age-appropriate terminology like that.  Give them something to look forward too.  It will get better and things will work out. Keep the faith.. We all have on this board, you are not alone.

Evelyn

[fused]

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wendy125 wrote:

I don't have one lump sum but over the next 4.5 months, I will have $2400, about $600 a month extra, of course, that eliminates the possiblity of Christmas, but, we're trying to set priorities, I just don't know if the kids will understand.

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May I suggest you and/or your DH start a second job, maybe a part-time one or sell some things. With your current CC debt, it's unlikely paying $600 for four months will get you very far and here's why. A good chunk of your payments will be eaten up by the over-the-limit fees and very high interest. Your focus should be on paying down the over-the-limit CCs and preventing the others from reporting as

maxed-out or over the limit. FYI, just because two of the four over-the-limit CCs are closed doesn't mean they are not factored in util% calculations. Closed CCs with balances are factored in util% calculations, one's w/o balances are not.

Message Edited by fused111 on 08-14-2007 08:57 AM

[Anonymous]

What about a loan from our bank or credit union to pay off all the credit cards?  You may get a better rate and a more reasonable payment.  Have you looked into this?

[Anonymous]

Hi tessarue-

Those are great ideas.  We have four kids, ages (at Christmas) 16, 10, 6, and 2.  They're pretty good about it and I've told them that their present will be a house, once we get approved for a mortgage; however, getting there might take a bit longer than I had hoped.  Our new mantra is, "One day at a time." 

[Anonymous]

Congratulations on paying off your debt!

Luckily, we only have $4000 worth, which will be paid off in January but that's when our landlord is putting our house on the market and there won't be enough history to get us approved should it sell quickly.  The good thing is, we live where there is a great deal of snow during the winter so, most people don't want to move then.  Let's HOPE!