I have researched and done quite a bit of reading on the forums. If you would be able to help setup a repayment plan and advise us exactly how to pay it off it would be EXTREMELY appreciated. We are having difficulty doing this and I
Player 1 Income - $2,400 biweekly
Player 1 Checking/Savings - $40/$6,000
Player 1 Credit Score - Citi - 673, Creditwise - 687
Player 2 Income - $2,000 biweekly
Player 2 Checking/Savings - $50/$0
Player 2 Credit Score - creditwise - 527
Total Income - $8,800 monthly
Rent - $2,400
Internet - $60
WaterPower - $90
Car 1 - $271 - 10% interest - 3yrs remaining ($9,124)
Car 1 ins - $120
Car 1 gas - $480(uber)
Car 2 - $355 - 0% interest - 3yrs remaining ($12,000)
Car 2 ins - $128
Car 2 gas - $80
Food - $200
Bookie - $2000 (4,200/12,000) remaining $500 every Monday
Total Living Expenses - $6,184
1s - CCs - These are all high interest above 20% Min payments are $25-$40
Cap 1 - (766/750)
Cap 2 - (6000/3000) just charged off or collections
Buy Power - (893/750)
Credit1 - (426/450)
Credit1-2 - (1008/1000)
US Bank - (478/500)
OpenSky - (215/200)
2s - CCs
Amazon - (650/2500) - 27.49% Due 3rd - $25
BofA - (13862/15000) - 18.25% $6,338, remaining is 0% until June 27th. Due 24th - $270
Cap1 - (13676/15000) - 24.40% - $1,586, 15.40% - $2,625, 0% 7,938 until ??? AS OF NOW CAP1 CANT FIND ONE! Due 24th - $147
Quicksilver - (932/1000) - 15% Due 24th - $25
Chase - (9041/9800) - 26.49% - $1,791, 14.49% $7,280 Due 15th - $222
Old Navy - (7981/8000) - 26.24% Due 20th $224
Citi - (20008/21000) - 13.49% Due 16th - $424
Discover - (5632/7800) 16.49% - Due 15th - $113
Paypal - (0/1700)
Again, we would be greatly appreciated for any help!
Player 1 and 2
PS - I will provide you with whatever info. you need, just ask.
Focus on where the $2700/month (after the living expenses you've listed) is going and try to account for all of it. Most everybody will find a good chunk of money they can't account for in here and it lets you see where you need to fix your budget.
Rent is your biggest bill. Can you take in a roommate or move somewhere cheaper to reel it back in?
Getting a firm grip on your budget is actually more important than figuring out what to pay on first. That will come to light once the budget is worked out
Player 1 should start by paying off the lowest balance, then the second lowest etc. Player 2 should pay off the card with the highest interest rate, then the second highest, etc.
These are great options. Perhaps I was looking more towards paying off each card to a certain percentage, then once player 2 has arrived at A better credit score apply for a balance transfer card and take advantage of the 0%. We currently have Chase Slate, Citi DP, Cap1 World, BofA Preferred and Discovery IT. I think all the best options for BTs. So when do we start to look that direction, what card would be good when we get there? Should I open a checking account at Chase and start having Direct Deposits go there so when I apply for perhaps Freedom or should I open one at Citi and try for Simplicity. Or should we go for both? We both have checking accounts at BofA. I know right now the best option is to pay the highest interest, however, I am trying to plan for the future as well. Is there a possibility that once the cards are paid down below 70% or a % thay would matter more significantly, there would be a possibility of being accepted for BT card with a high limit?
Actually, some thing like that. However, it has been like that for a year or so, maybe even more. I had it to 4,800, then I missed a few and it came back up. I didnt mean for it go in to collections, it was my oldest credit line. I think 20 years.
@RealyTry, it's apparent that you realize the problem with a BT card at this point. I think to get a decent approval, at minimum, you'd want all balances below 48.9% of their limits. 28.9% or below would be even better.
P2 could probably work toward that by aiming for 88.9% on all cards, then 68.9%, then 48.9%. After that,, it could make sense to shift to paying high interest cards first.
The issue with P1 is the charged off card. That balance is substantial, and it's double its limit. By the time P1 is down to 48.9% on all cards, the job is mostly going to be done. That doesn't mean that a BT card wouldn't make sense at that time. It's just that it's going to take a long time to be in the position to apply for one.
In P1's case, I suggested attacking the small balances first because its something that's achievable in the relatively short term. Bringing all cards below 88.9% (or more like 85% to make sure that interest doesn't max the cards again) would be another option that would cost a bit more than getting rid of the smaller balances first.
Invest time in working on a budget to avoid creating new debt.
My go to is YNAB but there are many budget gurus depending on how desperate you are to rid yourself of debt.
Keep the payments 100% on time that will be the biggest help.
You also try the free version of undebt.it a snowball/avalanche calculator.