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Need advice High balance & high intrest rate

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Need advice High balance & high intrest rate

I have 2 cards that I used having some rough times with . I ended up maxing them both out . So now I am stuck because they both have a extrememly high intrest rate

One of the cards has a 22.9% and the other is a 16.9% . The limit for one is 22,000  and the other is 15,000 . I really need some major advice in how I shoud go about paying them or handling the situation . Because I tried to pay a little more than the minuium and that basically didnt make it move much because once it was paid a few day later they charged an intrest fee right on top of that .

 

Let me know if you have came acorss this issue and how you went about paying your down . Any advice is appreciated.

 

Thanks in advance

 

 

Message 1 of 8
7 REPLIES 7
Senior Contributor

Re: Need advice High balance & high intrest rate

What are the minimum payment amounts!
Message 2 of 8
New Member

Re: Need advice High balance & high intrest rate

They're  both are around $300  $400 monthly !

Message 3 of 8
Senior Contributor

Re: Need advice High balance & high intrest rate

For it to make much of a dent you would need to make double and triple the minimums.

What are your FICO scores?
Message 4 of 8
Valued Contributor

Re: Need advice High balance & high intrest rate

Welcome nudson! Can you provide more details on your scores, negatives, etc.?
                               

Total Credit: $240,100Credit Utilization: 1%AAoA: 5 years, 7 monthsInstallments: Car Lease, Marcus LoanNegatives: 0

LOWES-35k | BOA-32.5k | AMEX-30k | DISC-27.1k | ALLIANT-25k | NFCU-25k | BARC-15k | BBUY-12k | CHASE-10k | WAL-10k | CITI-9.7k | PENFED-9.7k


Message 5 of 8
Valued Contributor

Re: Need advice High balance & high intrest rate

$37,000 in credit card debt will take some time to pay off. Look at undebt.it, a snowball program that will show you the current payoff schedule and what even small additional payments will do for the payoff schedule.

 

Make every payment ontime.

 

I would recommend checking out a budget program: Dave ramsey, YNAB, Mint or some such program. The first thing you need to do is not make new debt.

 

I would try to get both cards below 90% utilization as they will no longer be considered maxxed out.

 

Check out SoFi.com, Prosper, Lending club  as all three will see if you qualify for a loan and at what rate for only a SP (soft pull). Re-financing the revolving debt into an installment personal loan will boost scores.

 

Also, look at your income. How does this debt relate to your income? If it is near your income you may want to check out the rebuilding thread for some additional advice.

 

I wish you good luck, many of us have been there with a mountain of debt. It can be done.

Message 6 of 8
Senior Contributor

Re: Need advice High balance & high intrest rate


@nudson1031 wrote:

Because I tried to pay a little more than the minuium and that basically didnt make it move much because once it was paid a few day later they charged an intrest fee right on top of that .


You need to pay a lot more than the minimum.  Find an online credit card payment calculator and play with the numbers and you can see how the amount of the payment matters.  Also look into you minimum payment and consider how much of that payment is just interest.  You need to pay enough to be reducing the priincipal.

 

You'll also need to ensure that spending is in check and that you're sticking to a budget or else you'll continue to slip into that sinkhole of debt.

Message 7 of 8
Contributor

Re: Need advice High balance & high intrest rate

Speaking from experience, you have to stay positive and it will require a lot of discipline on your part to trim down your monthly expenses.  Cut off your creditcards to eliminate the temptation of adding more debt, you have to pay more than the min to reflect any changes.

keep your head up!

Equifax: 704 TransUnion: 710 Experian: 706
Message 8 of 8
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