We want to change and we need help!

[Anonymous]

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

Income

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

Expenses 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!

Thanks,

Player 1 and 2

PS - I will provide you with whatever info. you need, just ask.

[Anonymous]

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

[HeavenOhio]

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.

[Anonymous]

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?

[Anonymous]

@OP- kudos to you and your wanting to get help/advice.
I can relate to that bookie weekly payment thing, sounds like you are quite the gambler. I would make sure you have that under control, can really set you far behind financially and personally. I experienced it myself.
Anyways- does your credit score as player 1 take into account the recent charge off by capital one? That typically sends a score South quite a bit. Is that capital one balance $6k on a $3k limit accurate? Not accusing but that sounds like a potential what most creditors would call “fraud” not saying you did but you made a payment to zero the balance then immediately charge up the max then day or so later payment bounces.

If that’s the case, I would resolve that account ASAP. Nothing is guaranteed but if they don’t send the account straight to legal they will after a collection agency tries to collect. That would be my priority + once you get that resolved it heals your only negative item. Good luck!

[Anonymous]

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.

[Anonymous]

No worries. Sounds like you plan to make it right. Is it still with capital one or has a collection agency or law firm contacted you? There isn’t any interest accruing on it now, but I highly suggest resolving that one ASAP.

[HeavenOhio]

@Anonymous, 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.

[Appleman]

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.

[Anonymous]

I really appreciate all your help! Thank you for taking the time to reply to the post.