Excessive CC Debt What are my options?

[Anonymous]

I have about $12,000 in Credit Card debt it's split between 3 cards and all 3 are on 0% APR Promos (Thank God!). Right now I can only afford to pay the minimum payments but I'm hoping that by May I can but at least a 3k payment into it and hopefully $500 monthly payments (total, not per card) following.

Here's the breakdown:

5.5k on a CU Card promo expires 4/27 then 10.49%
4k on Chase Slate promo expires 5/10 then 19.74%
2.5K on BOA card promo expires 8/5 then 19.74%

Also all of these are at 90% of their limit being utilized I know but I had to I didn't have any other options available at the time. This along with inquiries and my mortgage tanked my score it was 710 now I'm at 655 I'm in tears seriously I worked so hard to get there and I know in time it'll bounce back but it still hurts. I have no late payments (only (2) 30 day lates from 2012).

I've considered getting a debt consolidation loan for maybe the CU and the Slate once they expire it'll keep interest lower than what it is and more time to pay.

So please let me know your thoughts on what are the best solutions I really appreciate it!

[oldman425]

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.

[Anonymous]

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@Anonymous wrote:
I have about $12,000 in Credit Card debt it's split between 3 cards and all 3 are on 0% APR Promos (Thank God!). Right now I can only afford to pay the minimum payments but I'm hoping that by May I can but at least a 3k payment into it and hopefully $500 monthly payments (total, not per card) following.

Here's the breakdown:

5.5k on a CU Card promo expires 4/27 then 10.49%
4k on Chase Slate promo expires 5/10 then 19.74%
2.5K on BOA card promo expires 8/5 then 19.74%

Also all of these are at 90% of their limit being utilized I know but I had to I didn't have any other options available at the time. This along with inquiries and my mortgage tanked my score it was 710 now I'm at 655 I'm in tears seriously I worked so hard to get there and I know in time it'll bounce back but it still hurts. I have no late payments (only (2) 30 day lates from 2012).

I've considered getting a debt consolidation loan for maybe the CU and the Slate once they expire it'll keep interest lower than what it is and more time to pay.

So please let me know your thoughts on what are the best solutions I really appreciate it!

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I'm curious.  If you are having difficulty in keeping up with these cards, why then are you applying/applied for multiple business credit cards and requesting CLIs on others?  I would think that adding more cards and potential debt is not the best option.  I wish you the best in paying the cards that you have and understand that adding more limits can decrease your overall debt and potentially raise your scores but your biggest problem right now is the very high utilization on the 3 cards and the inability to pay them down.  Therefore I would caution against adding more cards which could lead to the temptation to just shift and/or add to the existing debt that you have.

I will also add that a debt consolidation loan isn't likely to do you much good.  For one, with your current scores you probably won't receive anything close to the lowest APR as possible and secondly, while the $12K seems daunting at this point, it really isn't high enough to give you a significantly lower payment that what you will have with the three cards.  You're going to need to come up with a plan to make as high as payments as possible.  Cut out unnecessary expenses and consider a part time job if possible.  Too often people use debt consolidation loans just to shift balances and in the end no real benefit is realized.  Good luck and with the right focus you'll be able to dig yourself out of this hole before too long.

[Anonymous]

I remember that you had a post about not getting CLIs the other day.  These cards were not listed in your list of cards you mentioned.  These maxed out cards would be a reason you are not getting increases.  Also I saw a post where you said you have a collection.  There's  more going on than you mention in individual posts.

[Anonymous]

Irish80 - My fiancée and I just started our own business wholesaling electronics. We are waiting on some inventory from overseas then are marketing it to small local businesses. This will be our source of income we are hoping it goes successfully and have found a good supplier to get our products from now we just need to receive and market them. We aren't biting off more than we can chew so to speak. Because Business Credit is new to us and we have no business credit score we wanted to get 3 revolving TL's going. Also the cards business cards have no APR until October which gives us breathing room to get everything up and running smoothly.

Honestly I think it will be running smoothly with a steady income stream by later this year when we have consistent clients. But those 0% APR promos run out in April/May then the interest begins which is what we don't want. Combined just between the Chase and CU card's interest per month it's over $100. I've seen debt consolidation loans under 10% APR which is why that's something we considered. We don't want to just shift the balance we want not for the interest to become overwhelming.

We are putting all of our time and effort into getting our small business going. So is there anything you would recommend aside from trying to pay it as is? Because $100 a month in interest is too much I know we put ourselves here but we are trying to strategize and be responsible.

[Anonymous]

Em71 - This specific thread was posted by my fiancée. However we own a home together, have a family together and we both manage each other's financials. Any other posts about CLI's or collections were in regards to my credit.

I apologize for the confusion. But as a side note I am an AU on the Chase Card mentioned above but not the other two because of the high balances I removed myself.

[Anonymous]

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@Anonymous wrote:
Irish80 - My fiancée and I just started our own business wholesaling electronics. We are waiting on some inventory from overseas then are marketing it to small local businesses. This will be our source of income we are hoping it goes successfully and have found a good supplier to get our products from now we just need to receive and market them. We aren't biting off more than we can chew so to speak. Because Business Credit is new to us and we have no business credit score we wanted to get 3 revolving TL's going. Also the cards business cards have no APR until October which gives us breathing room to get everything up and running smoothly.

Honestly I think it will be running smoothly with a steady income stream by later this year when we have consistent clients. But those 0% APR promos run out in April/May then the interest begins which is what we don't want. Combined just between the Chase and CU card's interest per month it's over $100. I've seen debt consolidation loans under 10% APR which is why that's something we considered. We don't want to just shift the balance we want not for the interest to become overwhelming.

We are putting all of our time and effort into getting our small business going. So is there anything you would recommend aside from trying to pay it as is? Because $100 a month in interest is too much I know we put ourselves here but we are trying to strategize and be responsible.

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I appreciate your response.  I have read your posts in the business forum and I understand your desire to establish business credit.  I hope it goes very well for you.  You need to be very prudent though in your use of any business credit.  Whether the cards have 0% APR or not you still need to repay the cards or you will end up in the same situation you have with your personal cards.  It is very difficult to establish a business when you are in debt on the personal side and have difficulty repaying those cards.  

As for what you can do I suggested a part time job and cutting your expenses.  I don't want to sound too obvious but you either need to increase income or cut expenses.  There really isn't any magic thing you can do with more credit to resolve the situation.  As I mentioned in my first post I don't think the debt consolidation loan is your best option.  You won't get a really low rate right not if approved at all and the $12K just isn't that high to have a huge impact on payments even with a lower rate.

[Anonymous]

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@Anonymous wrote:
 My fiancée and I just started our own business wholesaling electronics. We are waiting on some inventory from overseas then are marketing it to small local businesses. This will be our source of income we are hoping it goes successfully and have found a good supplier to get our products from now we just need to receive and market them. We aren't biting off more than we can chew so to speak. Because Business Credit is new to us and we have no business credit score we wanted to get 3 revolving TL's going. Also the cards business cards have no APR until October which gives us breathing room to get everything up and running smoothly.

Honestly I think it will be running smoothly with a steady income stream by later this year when we have consistent clients. But those 0% APR promos run out in April/May then the interest begins which is what we don't want. Combined just between the Chase and CU card's interest per month it's over $100. I've seen debt consolidation loans under 10% APR which is why that's something we considered. We don't want to just shift the balance we want not for the interest to become overwhelming.

We are putting all of our time and effort into getting our small business going. So is there anything you would recommend aside from trying to pay it as is? Because $100 a month in interest is too much I know we put ourselves here but we are trying to strategize and be responsible.

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I wish you the very best with your new business, but am concerned about the reality of this whole situation. You may know that many (even most) small businesses operate in the red for the first year of operation, or have very inconsistent income, and sometimes well into the second year. I'm concerned that you're expecting an income windfall that may or may not happen with a new business, and making credit decisions based on possible income.

[SouthJamaica]

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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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I agree. Once that balance is paid off the monthly payment will decrease.

[Anonymous]

Irish80 - (Sorry I can't quote you I'm responding from my Iphone). Another reason we applied for multiple (3 total) Business cards is because they all have sign up bonuses which I believe will help us at least somewhat.

We are being very cautious with our business credit we are not overbuying inventory we are only getting essentials until we believe we can 100% sell our products. Currently for business credit we have about 16k CL combined between 2 cards and we plan for the time being to keep UT under 10%. We have used it for some personal expenses (gas, food, internet) but that is all. Our housing payment and utilities is relatively cheap ($950 a month combined).

For personal the interest just seems overwhelming which is why we are trying months ahead to develop a game plan. I've read Amex sometimes extends your 0% APR promo upon request do you think a CU or Chase would do that? Even an extra 3-6 months would help a lot. My fiancée has a part time job but she isn't able to fully dedicate herself to making this business work while doing so which is why it's moving slowly.