High Utilization

[Meanmchine]

I have a cousin who is struggling with high utiliztion. She has not missed any payments and so far no AAs. She has multiple accounts with these lenders, BoA, Comenity, Synchrony, Amex, and Barclays. She fears that she will soon have to miss a payemnt here and there. ( cards are 40% - 60% util atm )

Her question is with the lenders listed above, who is more likely to get spooked first? If she has to miss a payment on an account or two, she wants to know so she can try to keep her cards relatively intact.

She anticipates coming into a considerable amount of money within the next 6 months so she has no need for radical options.

Thanks !

[Anonymous]

In my opinion it will be Barclays first then Amex not far behind.

[Anonymous]

Minimum payments are a miniscule part of total debt. If she can't even maintain the minimum payments on her cards, she shouldn't have the cards in the first place or get into credit card debt. Just pointing that out for good measure. Having said that, have her set a monthly budget, and follow the debt snowball method. At the very minimum, she should make her minimum payments on ALL of her debt, while attacking the lowest after that with any extra money. She needs to cut back her budget dramatically, simple as that, and get serious about eliminating all of her debt within 24 months. BTW I love the euphemisms on here: 'High utilization' = In debt up to your eyeballs you're paying 18% on :-P

[Anonymous]

Barclay's is very, VERY quick with their reporting. If I were in that situation, I wouldn't mess with them or AMEX just because I never want to be on the wrong side with AMEX.

Maybe your cousin could reach out to the remaining three and see if they can forgive one missed payment similar to how Discover offers missed payment forgiveness.  Might have more luck with the two store card creditors. 

[simplynoir]

---

@Anonymous wrote:

In my opinion it will be Barclays first then Amex not far behind.

---

I concur with this. Might throw Synchrony into this as well with how they've been with card shutdowns reported on here recently.

[Kforce]

---

@Anonymous wrote:

Minimum payments are a miniscule part of total debt. If she can't even maintain the minimum payments on her cards, she shouldn't have the cards in the first place ( +1 ) or get into credit card debt. Just pointing that out for good measure. Having said that, have her set a monthly budget, and follow the debt snowball method. At the very minimum, she should make her minimum payments on ALL of her debt,  ( If she does not, her problems will multiply ) while attacking the lowest after that with any extra money. She needs to cut back her budget dramatically, ( +1 ) simple as that, and get serious about eliminating all of her debt within 24 months. BTW I love the euphemisms on here: 'High utilization' = In debt up to your eyeballs ( 100% correct ) you're paying 18% on :-P

---

[Anonymous]

Missing payments IS a radical option.

While not ideal, I would pull cash advances off of cards if I were her to keep up with the minimums.

If she has a car payment, most lenders will let you skip one payment per year, so that is worth asking about. She can also see what kind of flexibility there might be with bills that don't report to credit such as rent and also sell some items of value to keep those minimum payments up.

[Remedios]

---

@Anonymous wrote:

Minimum payments are a miniscule part of total debt. If she can't even maintain the minimum payments on her cards, she shouldn't have the cards in the first place or get into credit card debt. Just pointing that out for good measure. Having said that, have her set a monthly budget, and follow the debt snowball method. At the very minimum, she should make her minimum payments on ALL of her debt, while attacking the lowest after that with any extra money. She needs to cut back her budget dramatically, simple as that, and get serious about eliminating all of her debt within 24 months. BTW I love the euphemisms on here: 'High utilization' = In debt up to your eyeballs you're paying 18% on :-P

---

OP asked a specific question, not for your life philosophy.  Your answer, as always, is nothing short of snappy and full of proselytizing. 

[kilroy8]

That 1st 30-day late murders your score. I would be all about preventing that.

[Anonymous]

Edited...

There are many consolidation lenders online to choose from and all of them vary greatly on features and terms (rate, mos to repay, etc.).  In many cases she can get prequalified and determine the rate before she makes an application.  A consolidated loan with a fixed monthly payment might save her a lot of money.  And funds can be in her account in as little as one day.

Sorry OP, the above isn't what you asked for.  From personal experience avoid being late on AMEX at all costs.  They hold a grudge - for a very long time.