cancel
Showing results for 
Search instead for 
Did you mean: 

How Much to Pay Down on Cards?

Estimate your FICO® Score range for free

FICO® Score Estimator

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Community Leader
Super Contributor

Re: How Much to Pay Down on Cards?

Its amazing how everyone would do it different Smiley Happy Only Op knows whats best. Were it me, and im just average at best, id pay everything off, except pl to help your credit mix. Start fresh, close cards you dont want or need, lock away ones you want to keep and use one general purpose card for monthly use to pif and establish a new credit management. Your ssvings can be built if you have income coming in and would be much easier to start when you have 0 credit card debt. Good luckSmiley Happy
Charter Member of the Discover " No Cli For You " Club !

Chase Never/24 Squad Leader
Team Pendread Anonymous
#JustSayNo2Comenity
Officially S.O.G.O.T.P
Message 11 of 19
Established Contributor

Re: How Much to Pay Down on Cards?

Hi jada03, I personally use Discover savings for 2% rate but there are a few options out there if you’re ok with online only accounts. If you google “High yield savings accounts” you’ll find articles comparing banks and their latest rates. I like Discover because they have no minimums, fees, or hassle.


Aug 2019:

Stats:
Message 12 of 19
Senior Contributor

Re: How Much to Pay Down on Cards?

I would first make the home repairs. Then I would pay off all the high interest cards leaving DISCO at 0% interest. Marcus monthly pay 

monthly ? 

 

Those high interest accounts pay a whole 2% .  if  you pay off the cards  you can always use them again. With better scores perhaps in 6 months you can get them to lower interest rates. 

Message 13 of 19
Frequent Contributor

Re: How Much to Pay Down on Cards?


1. $5K for home repairs

2. $10,174 (+ a bit more for trailing interest) to pay off credit one, capital one, ollo, marcus, which eliminates high interest debt

3. Put the rest in an interest-earning savings account

4. Divide the Discover balance by the number of months remaining -1 on the 0% promo. You want to pay it off 1 month before the promo expires to make sure you don’t get charged interest — hopefully your income alone will cover this plus your expenses so you don’t have to use your savings, but if not, then use that windfall to gradually pay off this debt. Do NOT use this card until your statement says $0 owed.

5. Use ONE credit card for expenses and pay it in full every month. The goal is to enjoy the grace period and not pay any interest. You can rotate which card you use each month if you feel the need.

6. Set up your budget so that you are not spending more than your income and you are able to add to your savings and not have to live off credit cards again.

7. Get rid of unnecessary expenses. From what I’ve read here, Credit One charges high fees. I would close that and similarly usurious cards. You’ll be able to get better cards soon enough.
Message 14 of 19
Contributor

Re: How Much to Pay Down on Cards?

Personally, I would do as a few others have said and get the house fixed up, pay off the high interest cards, put $1000 in high interest savings, pay as much as possible on Discover.  The money you would be paying monthly for the card payments could go to the savings too so you could build up a good buffer.

Message 15 of 19
Valued Contributor

Re: How Much to Pay Down on Cards?


@jada03 wrote:

As part of my divorce (yay!) settlement, we’re pulling some cash out of the house that I am keeping. I will pocket roughly $25K.  I don’t want to throw all of it at cc debt.  Some of it needs to go to a few home repairs, nothing major, probably less than $5K.

 

My cc utilization is off the charts at 80%.  The ex was having his checks direct deposited into secret accounts, over drawing the joint account ($37 a throw), and all kinds of gross financial mismanagement.  Thus, I was forced to put way too much on ccs (he has none, for obvious reasons).

 

Credit One $1396 @ 26.15% ($1800 limit)  I would pay this

Cap One $898 @ 25.15% ($1500 limit)  I would pay this

Ollo $1507 @ 25.74% ($2600 limit)  I would pay this

Ulta MC $1373 @29.24% ($2500 limit)  I would pay this

Discover $13,142 @0% ($15K limit)   This needs clarification...how much longer does the 0% last? If not paid then it will cost a lot.

Marcus/Goldman Sachs $5K @15.99% (unsecured personal loan)

 

Of course, the utilization is pushing my FICO down.  My payment history is 100% on time since 2015 when I had one a 30 day late on a cc.  It was a total oops thing.

 

So, how much cash should I take and throw at the ccs?  Which ones?

 

We should never have gotten into this mess.  There was sufficient money coming in to cover expenses.  The ex somehow made a complete shambles of things.  Everything was hidden from me.

 

I need guidance on how to fix this.  Thoughts?  Thank you.

 

 

 

 

 

 

 


Keep in mind the ones I said I would pay is dependant on being able to pay the one that is at 0% off before the 0% intro rate expires. That needs to be at 0 before then, or they will charge interest from the date of the charges. I would look to either have it paid off by then or get another card with a 0% offer by then to transfer the balance to.

TU fico08=823 08/12/19
EX fico08=813 08/10/19
EQ fico08=826 08/04/19
EX fico09=818 08/03/19
EQ fico bankcard08=849 07/23/19
Message 16 of 19
Community Leader
Senior Contributor

Re: How Much to Pay Down on Cards?

@sarge12, the 0% is on a Discover card. There's no deferred interest.

Message 17 of 19
Valued Contributor

Re: How Much to Pay Down on Cards?


@HeavenOhio wrote:

@sarge12, the 0% is on a Discover card. There's no deferred interest.


So once the 0% expires it just charges interest on the balance that exists at that time, and does not charge interest for the time it was at 0?

TU fico08=823 08/12/19
EX fico08=813 08/10/19
EQ fico08=826 08/04/19
EX fico09=818 08/03/19
EQ fico bankcard08=849 07/23/19
Message 18 of 19
Established Contributor

Re: How Much to Pay Down on Cards?

Apparently that’s true. Good to know!

“Discover’s promotional offers are different. When a Discover card features an introductory or promotional-period interest rate of 0%, no interest is charged during that period. So, when the introductory or promotional period ends, any remaining balance will begin to accrue interest from that date forward, but there is no additional interest related to the intro/promo period.”

Source:
https://www.discover.com/credit-cards/resources/what-is-deferred-interest/



Aug 2019:

Stats:
Message 19 of 19
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.