Excessive CC Debt What are my options?

[Anonymous]

I know most operate in the red in the first year however, our business has no overhead we have to storefront location. Our only overhead is our housing payment which we do use our home for business. Which is why I believe it will be a good source of income (not great but enough to get by until it takes off). And making credit decisions based on this seems reasonable IMHO.

[Anonymous]

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@oldman425 wrote:

I would pay as much as you can afford on the BoA and minimum pay the other two, once it's paid off then work on Chase then finally the CU card.

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Why use the snowball here?   The BoA card is 0% until the latest date, so I would address that last.  I think OP wants to save the most money rather than need the psychological boost of one less debt.   I would attack high APRs as they become active, paying off BoA last.

[Revelate]

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@Anonymous wrote:

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@oldman425 wrote:

I would pay as much as you can afford on the BoA and minimum pay the other two, once it's paid off then work on Chase then finally the CU card.

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Why use the snowball here?   The BoA card is 0% until the latest date, so I would address that last.  I think OP wants to save the most money rather than need the psychological boost of one less debt.   I would attack high APRs as they become active, paying off BoA last.

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This is pretty much what I was going to to say: Chase first, probably BOFA second, and the CU card last as the lowest APR... though if you can get additional money to pay off part of the CU card and still handle the BOFA card adroitly by the time it comes off from promo APR, do that.

[MrsCHX]

Agree with paying off the BOA and put the additional $500 into the Chase. Then paying the minimum on the CU card, while throwing everything at the Chase card. The CU card will have the interest hit because you won't beat the promo period but the interest on the other two is nearly double. 

You really need to try to pay the full $6.5k on the BOA and Chase by May. If you are starting with $3k and plan on $500/mo for Jan, Feb, Mar, Apr, May, that's $5,500. You have to come up with another $1k. Cancel some extras for 6 months if you need to (cable, gym, subscriptions, etc) to find that $200/mo. 

Then you'll be paying off the 1 card.

[Anonymous]

Longtimelurker - I was thinking similar which is why I asked again. I was confused like why attack the BOA that is the furthest away.

Do you know if any ever offer to extend my 0% promo or do a rate reduction? (With my Chase or CU Card?)

[Anonymous]

What do you guys think of this:

I just got approved for a CLI to 13.5k on my NFCU CashRewards Card I saw that they have no Balance Transfer Fee and a 2.99% APR promo for the first 12 months. I'll have to check when this promo expires to sign up for but I would like to use this to carry the balance while making payments and not getting crazy amounts of interest.

What do you think?

[Anonymous]

I speak as some one who not only has been self employed for almost 40 years but been in all types of busines cycles.  1) Get a part time job  even if its evenings or afternoon.  I had to due this several times  in slow downs.   I don't like it but have had to do it.  2) Cut all personal expenses a) no cable b) no eating out c) tv dinner time d) no shiny toys e) no new(er) cars   Most small businesses fail within 3 years.  #1 reason can't make enough.   In the last 7 years in my industry my wife and I have put 5 of our competion under because we have lower costs and better service.  We now have all our clients plus theirs.  

[Anonymous]

I think you already know what you want to do and are just wanting anyone to tell you to go that route. I think it is dangerous to rely on balance transfers and to keep moving the balances around from card to card. The balances you are carrying are the real issue, the interest is a sympton not the root cause of your financial situation. Many people have said to cut expenses/increase income. What's the game plan to pay them off? Best of luck in whatever you decide to do to stay ahead of this. 

[Anonymous]

Honestly I think if we had until December we could pay it off, all 3 cards. I know a lot of people don't develop a game plan and end up drowning in debt but that's not the case here.

I honestly believe that our business will work, we have no overhead, we get our inventory overseas at really low pricing and sell wholesale to other stores locally. If we strike out at 10 stores there's another 100 waiting it takes time and perseverance.

Our game plan is to make $500 payments ($400 split between CU/Chase then $100 to BOA) a month starting next month towards this. Which should put a dent in it then if all goes well by the end of summer if all goes well make a one large payment to PIF.

That's the game plan

[Anonymous]

I think you need a more detailed  business plan and seek out lenders for business inventory.  Also if you have a good plan you might find a strong backer.  Many large towns have investments clubs that will back.  Granted you give up something but you get cash that does not have to be paid back for several years.