Ok, then my next regular big payment to Barclay will bring it around 67%. It’s at 71% right now. The card I wanted to go after next is at 92.6% and the last one is at 89.6%. You’re saying get the first one to 67%, then pay minimums on it and work on the 2nd and 3rd ones to get to 67%. Once they’re all around that mark, slam the 1st one until 47%. Wash, rinse, repeat?
Or apply an entire $2500 to Barclay and make it 8%, then make minimums on that while getting the others to 67/67, 47/47, etc..?
Or apply an entire $2500 to Barclay and make it 8%, then make minimums on that while getting the others to 67/67, 47/47, etc..?
Stop worrying about scoring. Stop worrying about what lenders might do.
If you aren’t snowballing (and being blunt that is a psychological crutch) mathematically getting out of debt the fastest is always pay the highest APR one off.
Be focused and smart, you had the right plan originally don’t be distracted. You have a pile of debt, don’t make it even worse than it already is, attack it in the way that saves you the most money in interest.
And to be perfectly honest assuming you have already curtailed your lifestyle, if you are going to be six years in paying off you probably should at least look at a Ch 13 anyway. I would.
Or a second job potentially if you can, that was my own nuke my HELOC balance fast scheme.
If you aren’t snowballing (and being blunt that is a psychological crutch) mathematically getting out of debt the fastest is always pay the highest APR one off.
Be focused and smart, you had the right plan originally don’t be distracted. You have a pile of debt, don’t make it even worse than it already is, attack it in the way that saves you the most money in interest.
And to be perfectly honest assuming you have already curtailed your lifestyle, if you are going to be six years in paying off you probably should at least look at a Ch 13 anyway. I would.
Or a second job potentially if you can, that was my own nuke my HELOC balance fast scheme.
Yes, he is suggesting taking all cards down utilization tiers together, to reduce odds of being balance-chased, and that is good advice in terms of avoiding being balance-chased.
But what some of us are saying is, being balance-chased is a lot less important than reducing how much of your budget is going to credit card interest, so, forget about that for now. You can sort that out later. I would pay down whatever is the highest APR until it is gone, then pay down the highest APR remaining until it is gone etc. Ultimately, you want to pay $0/month in credit card interest or very close to that. If you reach that point, the limits will take care of themselves, your scores will be higher, your DTI will be favorable, and they'll increase your credit limits again.
If the APRs are all about the same, then I suppose paying them all off together wouldn't be a bad idea, I just think paying less in interest is by far the most important thing right now, more important than credit scores, credit limits, credit cards. Good luck!
Barclay has 21.24% APR. The other 2 are 15.24 and 15.15
So many choices but they end up eventually doing the same. Paying down debt, so, here is the original question but disregarding the balance chasing part.
I’m gonna have an additional $2500 to apply toward the 3 CCs that I am currently not using. One has a balance of $2800 (71% util) but APR 21.24%. The others have lower APRs but near 90+% util and very high balances. The $2500 toward Barclay will make a huge reduction in util (from 71% to 8%) but paying $1250 each to cards 2 & 3 won’t have that dramatic an impact. Card 2 will reduce from 92.6% to 80.1%. Card 3 will reduce from 89.5% to 85.7%. So, armed with this info, suggestions?
I’m gonna have an additional $2500 to apply toward the 3 CCs that I am currently not using. One has a balance of $2800 (71% util) but APR 21.24%. The others have lower APRs but near 90+% util and very high balances. The $2500 toward Barclay will make a huge reduction in util (from 71% to 8%) but paying $1250 each to cards 2 & 3 won’t have that dramatic an impact. Card 2 will reduce from 92.6% to 80.1%. Card 3 will reduce from 89.5% to 85.7%. So, armed with this info, suggestions?