Paying Off CC Debt

[NRB525]

OP thanks for listing out all the details. I think you should start with the debt snowball. The list of cards won't have any significant BT offers, so no point in getting to fancy with where the payments go.

Keep the auto loans as is, don't accelerate payment.

Wife should rely on the AMEX Platinum for daily spend. She should make you an AU with the free Gold card so you have a Charge Card to use for your own daily spend. These must be paid in full each month, and that is going to help you with the other cards. Use the AMEX Charge cards unless someone really refuses to take it.

Do you have a CLI available on your Citi DC card? If so try to expand that card limit. Use that for your daily spend at places AMEX is not accepted, but only if the AMEX Platinum is not accepted. Pay the Citi DC in full and multiple times per month if necessary to keep it at zero balance.

Pay every thing else based on smallest balance first. Just keep paying the minimum on time, and throw extra funds to the smallest balance. Clear Target, for example, to be able to get that 5% benefit.

Good luck!

[Anonymous]

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@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)

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With the money you make each month. The loans have the lower interest rates it sounds like, so from that aspect, the interest you'll pay out won't be as high as the CC debt. With that in mind I would grab as many of the almost maxed cards, PIF and SD them. I think I seen mention that you have 12k you can hit hard with. 

Grab the 

Amazon (M)                                          $2300/2500

AMEX (W)                                             $2783/3000

AMEX PLATINUM (W)                        $2000/5000  (PIF each month) then stop using since it's a charge card and has to PIF 

Capitol One Quick Silver (M)             $1535/1800

Capitol One Quick Silver (M)             $3069/3300

 SD ALL OF THOSE Then 

@Then monthly hit the remaining with 3x the minimum or more if you can spare it. I'm assuming that each year you have a bit saved up.Do the same thing everytime you have a bit of money saved until all of them rest @ 0

This is looking a lot like my spending except I try to stick with only a few cards and have managed to pay them down to only 1 at 30% utilization. The rest I've beat myself over the head paying them down to under 10%. I have quite a lot that sit at 0% and now that I have them that way I only charge on them if I"m batting 1000 I can PIF.

Someone else suggested a spreadsheet, that's exactly how I managed to do it.

[Gunnar419]

I'm with MuvaNi and medicgrrl. Pay those almost maxed high interest cards, then snowball, snowball, snowball.

Snowballing may not make the most sense on a balance sheet, but it's an absolutely proven psychological motivator, and I agree that with so many payments to make (and so many to get rid of) snowballing will serve you well.

Kudos to you also for stepping right up to your responsibility. Good thing you have the income to be able to knock those debts down. Please keep us posted about your journey.

[Anonymous]

Snowball always ends up working as it takes into consideration human nature. The pay less interest method works for outsiders looking in because it's not their money, their debt, their stress, or habits that are still not completely broken. Snowball method always works for me because my income month-to-month is not the same. If you have a couple bad weeks in a row but stick to a hard number, youll screw up your budget… possibly needing to use a credit card you just made that Avalanche payment on.

[SouthJamaica]

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@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)

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I think you're right to use the snowball method with the revolving accounts. Forget about your scores for now.

[SouthJamaica]

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@Anonymous wrote:
Sorry but that's not good advice. Your asking OP to make insecure debt into secure debt with their home. What if the unthinkable happens and they fall behind then they will be in a much worst position of becoming homeless. Never use a HLOC to pay for unsecured debt, it almost no never makes sense.

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+1

[MrsCHX]

Definitely a no on paying off the installment loans. That CC debt is out of control and you could see some balance chasing once you start your repayment.

You make minimum $7k with those fixed installment payments being ~$2200 (I forgot and am on my phone and can't go back) what are you other REQUIRED expenses adding up to? One number for utilities, food, gas, medicine/health care, etc. Does that $7k include your wife's income?

At any rate, even if you assume half your income for necessities, you have at least $3k for debt repayment right??

Utilization isn't just about maintaining high scores. Lenders soft pull you and when they see you in this kind of trouble; you may start seeing limits slashed.

I would get all those maxed cards down to <89% as mentioned. You can choose snowball or APR method. I'm sure you know the pros and cons of each. When you make your list put anything on a promo 0% APR at the bottom (after they are all <89%).

Personally, I got myself out of debt last year by snowballing. I hated that nearly every card had a balance. BUT, I was in the beginning of rebuilding and my highest card had a $1300 limit. So I was paying such small amounts of interest (lots of ~$500 limits) that snowball made more sense over worrying about the $12/mo interest I was paying. And as you know with snowball, you eliminate a payment and roll that into the payments going forward