Trying to get CC debt under control!

[Anonymous]

I would PIF Discover and add the remaining amount to Amex. Maybe you can squeeze a little and pay off Discover/Amex completely. Let the new balance report and request a CLI for Discover or Amex if possible. Not to get into more debt but to increase your CL so you can trasnfer the 8k balance over to hopefully a 0% BT promotion from Discover who are known to run those types of promotion or worst case scenario app for a new 0% BT card. You don't have alot of options if you don't have all the funds necessary. The goal here is to NOT pay that ridiculous interest. You want that $ going to the principal and you need more time to do so. 

[Chris679]

Personal loan from the CU at 7 or 8% FTW. I would talk to a loan officer before you use the $4k and see what they have to say.

[trinigal30]

Thanks for the information/advice  @takeshi74. I understand that my FICO score is dependent on my overall history.  I guess I mentioned the mortgage because that is a big purchase.  Other than these credit cards, I don't have any bankruptcies or anything in collections.  I have 1 late payment on a phone bill that was in dispute that didn't settle in 30 days but that's about it.  I have no late payments on my student loan and my car has been paid off in full.  So that's the reason why i'm trying to fix this piece of the puzzle because it got out of control.  I am in a much better position financially now and will be using any extra money from bonuses etc to pay down the BOA.  I understand that new credit may not be my best friend at this time but I think it will be in my best interest to seek a personal loan from my credit union to tackle the $8K BOA balance since it's alot and the interest is very high (feel like i'll never finish paying for it).  I think your idea of creating a spreadsheet is a great idea to track my payments & stay on track.  Based on the feedback received I've decided to pay off the Discover & Amex in full by end of May....then I'll tackle the BOA.

[taxi818]

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@trinigal30 wrote:

Hi Everyone,

I have 3 credit cards (Amex, Discover & BOA) that have 96%,95% & 88% utilization on them respectively.  Most of this is old debt that I've just been paying the minimum on but now I feel like I'm in a better position financially and I'm trying to get them under control.  My FICO score is currently 677 and I don't plan on taking out any major loans as I have a mortgage that i've been paying on and have not missed a payment for 1.5 years.  Below are the balances and APRs on the cards.  I have $4,000 to pay down some of this debt and need to know what would be the best use of this money to increase my FICO score.  Should I pay the one with the highest APR, should I take out a personal (revolving) loan or should I try to get a 0% Credit Card.  Any advice would be greatly appreciated.  Thanks!

@Anonymous @ 25.49%v - Balance is $8,300; CC Limit - $8,600; Util - 96%

@Anonymous @ 11.49%v - Balance is $2,210; CC Limit - $2,500; Util - 88%

@discover @Anonymous.24%v - Balance is $3,331; CC Limit - $3,500; Util - 95%

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I feel you. I have a couple cards with high balances. But overall im only at 30% which is high for me. But i have a 3 year plan to pay it off. Nothing outraegous Just Stop using half of the cards during the time the payoff begins. You have to Pay something more than minimum if you ever plan on getting out of the situation. But at least you have not been late.

[trinigal30]

@Anonymous I definitely agree.I'm going to make the sacrifice and pay off the Discover & Amex in full by end of May.  For the BOA I know there must be a better option than making larger payments on the existing account as the interest is ridiculous.  I am in limbo with regards to the CU & 0%CC.  A 0% CC would be nice so that I can get the balance paid down for less but I really don't want another CC...but if that what needs to be done, I will at least try.  Once the Discover & Amex are paid down, I can check to see what rate my CU will offer me on a personal loan and make my decision based then.  The BOA balance is the biggest thorn in my side.Thanks for the advice.

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@Anonymous wrote:

I would PIF Discover and add the remaining amount to Amex. Maybe you can squeeze a little and pay off Discover/Amex completely. Let the new balance report and request a CLI for Discover or Amex if possible. Not to get into more debt but to increase your CL so you can trasnfer the 8k balance over to hopefully a 0% BT promotion from Discover who are known to run those types of promotion or worst case scenario app for a new 0% BT card. You don't have alot of options if you don't have all the funds necessary. The goal here is to NOT pay that ridiculous interest. You want that $ going to the principal and you need more time to do so. 

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[trinigal30]

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@taxi818 wrote:

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@trinigal30 wrote:

Hi Everyone,

I have 3 credit cards (Amex, Discover & BOA) that have 96%,95% & 88% utilization on them respectively.  Most of this is old debt that I've just been paying the minimum on but now I feel like I'm in a better position financially and I'm trying to get them under control.  My FICO score is currently 677 and I don't plan on taking out any major loans as I have a mortgage that i've been paying on and have not missed a payment for 1.5 years.  Below are the balances and APRs on the cards.  I have $4,000 to pay down some of this debt and need to know what would be the best use of this money to increase my FICO score.  Should I pay the one with the highest APR, should I take out a personal (revolving) loan or should I try to get a 0% Credit Card.  Any advice would be greatly appreciated.  Thanks!

@Anonymous @ 25.49%v - Balance is $8,300; CC Limit - $8,600; Util - 96%

@Anonymous @ 11.49%v - Balance is $2,210; CC Limit - $2,500; Util - 88%

@discover @Anonymous.24%v - Balance is $3,331; CC Limit - $3,500; Util - 95%

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I feel you. I have a couple cards with high balances. But overall im only at 30% which is high for me. But i have a 3 year plan to pay it off. Nothing outraegous Just Stop using half of the cards during the time the payoff begins. You have to Pay something more than minimum if you ever plan on getting out of the situation. But at least you have not been late.

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@taxi818 This is definitely a learning experience for me.  When I went through my accounts and looked at the interest & the balances I was so angry with myself.  I wasn't in a position to do much before but now I have the opportunity to get this under control.  It is just overwhelming and embarrassing to be in a position like this.  Everyone in the forum has given me such great advice, I feel like I can do this.  I don't usually use the cards...it's old debt that I just never took care of.  The only time I use the card is to earn a reward or points and I transfer the money to my CC...nothing major.  I wish you luck on your 3 year plan...we can do this!

[trinigal30]

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@Chris679 wrote:
Personal loan from the CU at 7 or 8% FTW. I would talk to a loan officer before you use the $4k and see what they have to say.

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@Chris679 The CU is definitely an option.  I had a great experience with them for my car loan. I think going to them in my current situation won't be a good idea.  I plan on going to them after I pay off Discover & Amex.

[SouthJamaica]

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@trinigal30 wrote:

Hi Everyone,

I have 3 credit cards (Amex, Discover & BOA) that have 96%,95% & 88% utilization on them respectively.  Most of this is old debt that I've just been paying the minimum on but now I feel like I'm in a better position financially and I'm trying to get them under control.  My FICO score is currently 677 and I don't plan on taking out any major loans as I have a mortgage that i've been paying on and have not missed a payment for 1.5 years.  Below are the balances and APRs on the cards.  I have $4,000 to pay down some of this debt and need to know what would be the best use of this money to increase my FICO score.  Should I pay the one with the highest APR, should I take out a personal (revolving) loan or should I try to get a 0% Credit Card.  Any advice would be greatly appreciated.  Thanks!

@Anonymous @ 25.49%v - Balance is $8,300; CC Limit - $8,600; Util - 96%

@Anonymous @ 11.49%v - Balance is $2,210; CC Limit - $2,500; Util - 88%

@discover @Anonymous.24%v - Balance is $3,331; CC Limit - $3,500; Util - 95%

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1. In your present situation, I don't think you're going to be able to get any non-onerous terms, such as a 0% balance transfer, or low interest credit union card. But more power to you if it's possible.

2. Assuming you can't borrow your way out of this, I think you should work hard on one account at a time, paying minimum balance +$5 on the other 2 accounts.

I would do it in this order:

(a) Bring the Amex card down to a $1950 balance;

(b) Bring the Discover card down to a $2750 balance;

(c) Bring the BOA card down to $6800;

(d) Bring the Amex card down to $1200;

(e) Bring the Discover card down to $1700;

(f)  Bring the BOA card down to $4200.

At this point, all other things being equal, your scores might be good enough

to enable you to get a 0% or 4.99% interest balance transfer offer from someone. If

so get rid of the BOA balance with a balance transfer. If not....

(g) Pay the Amex balance down to $700

(h) Pay the Discover balance down to $1000

(i)  Pay the BOA balance down to $2500

Again check for a good BT offer. If you can get one go for it. If not:

Keep paying BOA down to zero, and never pay them interest again.

From time to time you might want to call BOA and Discover and ask if you're eligible for an interest rate reduction.

[taxi818]

I'm not sure SJ. I have high balance on a couple cards and just got bofa and the fnbo card. No problem

But my overall is 30%. Damn taxes. Arggh

[SouthJamaica]

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@taxi818 wrote:
I'm not sure SJ. I have high balance on a couple cards and just got bofa and the fnbo card. No problem

But my overall is 30%. Damn taxes. Arggh

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30% vs. 94%. Slight difference there taxi