How large a monthly payment is he prepared to make? The interest is $95-$100 per month, and will come down fast if he can make large payments. The CLD by WF is probably the result of them getting spooked by how he charged up the card, and I presume he is carrying that as a balance? Is he making only minimum payments each month? Because on that balance minimum payments is a red flag for AA.
Basically, the current situation is a wake up call that he needs to pay down the balance as fast as he can. With the open balance, it might be a stretch to get a decent size limit on any new card, so it may be possible to get a BT card like Slate, but paying down the balance is still job #1, even if a new card is obtained.
Paying $500 per month will bring that down by $3k in 6 months. $250 brings it down by $3k in a year, and even if a new card is obtained, this is the kind of payment pace that will be necessary to avoid the same issue surfacing again in 12-15 months if the balances remain in place. Bringing down the balance lowers the monthly interest cost, right now, and opens the possibility for other cards, and those large payments also gives WF some positive news.
@Anonymous wrote:
Thbks cal and nrb525....
Yes he makes minimum payments of 157 a month he would do more but child support is killing him... Im going to tell him about chase slate.... But since he had a freedom card few years ago and. I think he closed it im not pretty sure what was the situation with the freedom....would that affect. His chances.?...
So basically no on the debt consolidation ?? I thought that would become as an installment...?
I've been there with the child support thing, it's not easy, but it is possible.
Yes, he should apply for the Slate, because until one does the actual application to the CCC, all the talk here is just speculation. Just be aware that the limit may not take over the whole balance. Having the Freedom in the past, even though closed, will be a positive as long as it was closed with no lates or charge offs by Chase. Any amount that the Slate provides will be a help to reduce the interest cost overall.
Cutting back on non-essentials (Starbucks counts as non-essential, buying soda pop is non essential, water can be free), taking a sack lunch to work, and finding ways to limit spending (I used a weekly grocery flyer $5 off for spending $50 recently), will enable larger payments on the card. At the same time, it is important to find low-cost ways to spend time with the kid(s) so that these years when they are growing up are filled with good memories. Hopefully the current balance on the card went to vital expenses, and in that case the monthly interest is just a cost of money. You can also check with a local credit union about getting lower interest, perhaps a CC from them.
I would do a combination of applying for slate and definitely getting the spending under control. If denied for the slate, move on to another 0% card. No use in "saving" hard pulls when the situation is dire. Even if he can only get $1000 starting limit, it can be recon ed and every bit helps.
The more important thing is doing everything to get that balance under control. Cancel cable, is the lease up soon? Move somewhere cheaper. Become an Uber driver.
The more important thing is doing everything to get that balance under control. Cancel cable, is the lease up soon? Move somewhere cheaper. Become an Uber driver.
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