No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
So I did it! I ran myself into a hugh credit hole, my fault, I take full responsibility. Now with that out of the way, I am looking for a little (or a lot) of advise on the best and or fastest way to dig myself out.
I am going to list the CC debt I have, some cards listed are under my wife's name, a few under my son's name (he is a college student and I pay his bills as long as he stays on the deans list! Only one year left)
Amazon (M) $2300/2500
AMEX (W) $2783/3000
AMEX PLATINUM (W) $2000/5000 (PIF each month)
AMEX (M) $800/1000
Barclay M/C (W) $1680/1900
Berkshire Bank Visa (M) $340/600
Best Buy (M) $4377/5000
Capitol One Venture (W) $7473/8000
Capitol One Venture (W) $6797/7500
Capitol One Quick Silver (M) $1535/1800
Capitol One Quick Silver (M) $3069/3300
Care Credit (W) $1266/2000
Chase Freedom (S) $400/4500
Citi Double Cash (M) $0/500
Citi Double Cash (S) $0/2500
Discover (M) $1835/2000
Discover (W) $5907/6300
Discover (S) $0/2000
Empower FCU M/C (Joint M&W) $2790/3000
Home Depot (M) $3068/3400
Kohl's (M) $555/700
Lowes (W) $6394/6400
Raymour & Flannigan (W) $3128/8000
Target (M) $799/900
Total CC Debt : $59,296/81,800
I also have a few loans:
2014 Malibu (S) $6544/18894 ($364.00 month)
2015 Silverado (M) $34499/42408 ($600.00 month)
Personal Loan $5300/11158 ($280.00 month)
Mortgage $62997/69600 ($863.00 incl taxes / month)
So, I am planning on using the snowball method unless someone has a better/faster way without debt renegotiation. I am not one to run from anything let alone my debt. Just wanted to see if there were any other options that might better suit my situation.
Monthly income averages $7k - 10k (self employed)
Thank you for the response. Lowes is 0% for 18 months, sorry should have mentioned that. I just built a new house (No Mortgage on this one) and costs got a bit out of control. I can go ahead and get these all below 89% today.
One other question for you. If you were in my situation and had the choice, would you payoff the malibu (3.24%) and the personal loan (11%) and use the $644.00 monthly for card payments or dump the $12k directly to the credit cards (8% - 29%)?
Thanks again.
I'm not a fan of the snowball method. I'm a fan of the "save myself as much money as possible" method.
Make a spreadsheet including APRs and minimum payments and figure out what saves you the most money in the long run.
Be aware that you want to pay down cards BELOW 89% -- including new interest posted. So pay it to 88.9% PLUS also pay whatever new interest will post next statement so you keep it below 88.9% always.
Then attack high APR first and minimums on everything else. If loans aren't highest APR, don't pay more than the minimum and crush out the highest APRs and keep them at $0 after.
More than anything else, you need to also go into poverty mode with new spending. Put your cable TV subscription into vacation mode and toss any savings there to debt. Dump any eating out (restaurants, drive thru, etc) until you are no longer paying interest on revolving debt. Ramen + sardines diet.
@Anonymous wrote:So I did it! I ran myself into a hugh credit hole, my fault, I take full responsibility. Now with that out of the way, I am looking for a little (or a lot) of advise on the best and or fastest way to dig myself out.
I am going to list the CC debt I have, some cards listed are under my wife's name, a few under my son's name (he is a college student and I pay his bills as long as he stays on the deans list! Only one year left)
Amazon (M) $2300/2500
AMEX (W) $2783/3000
AMEX PLATINUM (W) $2000/5000 (PIF each month)
AMEX (M) $800/1000
Barclay M/C (W) $1680/1900
Berkshire Bank Visa (M) $340/600
Best Buy (M) $4377/5000
Capitol One Venture (W) $7473/8000
Capitol One Venture (W) $6797/7500
Capitol One Quick Silver (M) $1535/1800
Capitol One Quick Silver (M) $3069/3300
Care Credit (W) $1266/2000
Chase Freedom (S) $400/4500
Citi Double Cash (M) $0/500
Citi Double Cash (S) $0/2500
Discover (M) $1835/2000
Discover (W) $5907/6300
Discover (S) $0/2000
Empower FCU M/C (Joint M&W) $2790/3000
Home Depot (M) $3068/3400
Kohl's (M) $555/700
Lowes (W) $6394/6400
Raymour & Flannigan (W) $3128/8000
Target (M) $799/900
Total CC Debt : $59,296/81,800
I also have a few loans:
2014 Malibu (S) $6544/18894 ($364.00 month)
2015 Silverado (M) $34499/42408 ($600.00 month)
Personal Loan $5300/11158 ($280.00 month)
Mortgage $62997/69600 ($863.00 incl taxes / month)
So, I am planning on using the snowball method unless someone has a better/faster way without debt renegotiation. I am not one to run from anything let alone my debt. Just wanted to see if there were any other options that might better suit my situation.
Monthly income averages $7k - 10k (self employed)
I'm with the others as far as paying at least 11-21% first across the board and getting them below 89% UTI, but also stop spending on them! then the next step take another 10% across the board paydown and keep doing that each month. Once you get to 49% UTI, then start snowball payments (high interest or low bal..your choice), but once you get the UTI down call your creditors and see if they will lower interest.
I have been doing this method the last 12 weeks or so and have had wonderful results..lower interest and serious CLIs
Good Luck !
I will agree with ABCD2199 here. It is extravagant spending that got you into this spot. Take those store cards and give them so your son and tell him under no circumstances to let you have them. He is better at managing credit.
No eating out, no junk food, no home improvement, no cable tv/satellite, no buying of anything but the essentials. I am not familiar with some of the cards but be sure to only use the ones with the best cash back benefits. Sure your Citi has a very low limit, but nothing says you can not make multiple payments monthly to use it properly.
Also like ABCD said, ignore the snowball method. Small balances do not hurt, high-interest rates do. And high utilization.
I wish you the best of luck, but getting on a budget and sticking with it and cutting out the things in life that are not essential is going to be your key to getting out from under this mountain. Do not get discouraged, keep your head up and stick to your goal. After you have worked this down, sit down and think about some serious investments instead of wasteful spending.
Rein in the wife. Pat son on the back and I'd say tackle the debt with highest APR to lowest since you have a good income...Definitely paint yourself blue and pretend you are chase and AA wifes cards though imo..that's what I would do to mine in similar situation anyway . It will be a fun game of dress up