@Catatonico wrote:So... I have recently consolidated several of my personal loans into 2 loans with lower interest rates (lowER.... not LOW) and freed up about $1k a month that I can apply to other debt. My credit score is about 680... based on my income, credit score, and current debt load, I think I'm pretty much maxed out as far as taking on any other loans. My credit report is clean (no baddies anywhere... just high utilization).
I don't have any specific goals right now, but I would like to simplify my finances and start dumping some of my rebuilder cards that I have. I'd also like to keep the most money available on my credit cards (just in case), so I don't really want to start with the cards I'm planning on closing first (its a psychological thing).
Here is what I have left. I want to do something with the credit cards now, which, I hope will increase my scores enough so that I can qualify to consolidate those loans. I've notated the accounts that I plan on closing. I've been making minimum payments (except on Discover) for so long that I know there's a possibility that I'll get balance chased... I'll probably just have to deal with it for now. Do I start smallest balance to largest... higher interest to lower... do I close the accounts as soon as they are paid off, or sock drawer them as long as they don't have fees? I just really need some help on focusing.
As I said earlier, I have $1k a month (I actually budget $260/week) that I can comfortably use to make extra payments. Being able to see progress keeps me motivated.
Thank you!
Category Company Balance Minimum Payment Rate Maturity Credit Limit Notes Loan OneMain $ 2,271.62 $ 155.00 19.00% 06/20/2020 Rewards Program Loan Pioneer Credit $ 5,042.88 $ 140.08 31.00% 10/16/2021 New Loan Avant $ 12,100.00 $ 428.76 29.95% 10/26/2022 New Credit Card PayPal - MC $ 265.32 $ 25.00 28.24% $300.00 Credit Card Credit One - MC $ 605.62 $ 25.00 21.15% $650.00 Close Credit Card Discover Card $705.54 $ 30.00 23.24% $800.00 Credit Card Citibank $ 888.21 $ 25.00 24.24% $900.00 Credit Card Best Buy Visa $ 940.87 $ 32.00 25.49% $1,000.00 Credit Card Georgia's Own Visa $ 975.31 $ 25.00 12.24% $1,000.00 My Bank Credit Card Credit One - Visa $ 1,241.47 $ 67.00 25.15% $1,300.00 Close Credit Card Capital One QS1 Visa $ 1,486.41 $ 46.00 20.15% $1,550.00 Credit Card Capital One - MC $ 1,946.13 $ 63.00 25.15% $2,000.00 Close - Merge w/ CapOne QS (was Orchard) Store Card Kohl's $ 641.62 $ 27.00 24.24% $700.00 Store Card Dell Financial Services $ 855.12 $ 32.00 29.99% $1,000.00 Close Store Card Care Credit $ 883.88 $ 33.00 26.99% $3,600.00 Store Card TiresPlus $ 1,022.07 $ 39.00 22.80% $1,200.00 Store Card Target $ 1,250.22 $ 29.00 23.15% $1,000.00 Close Store Card JCPenney $ 1,267.04 $ 31.00 26.99% $1,500.00 Store Card Walmart $ 1,869.85 $ 56.00 23.15% $1,900.00 Close Store Card Amazon $ 1,871.55 $ 47.00 26.24% $2,000.00 Store Card GameStop $ 2,274.03 $ 80.00 27.24% $2,350.00 Totals $ 40,404.76 $ 1,435.84 $24,750.00
I would leave the installment loans alone, just continue to make your payments.
With revolving accounts, I would recommend the snowball method:
1. Stop using cards.
2. Pay off smallest balance first, then next smallest, and so on.
3. On other cards pay minimum + something each month.
As each balance turns to zero, that will free up your remaining monthly cash to apply to the next smallest balance.
After you've paid off a subprime card with an annual fee, close the account.
As to the other accounts, leave them in place.
@SouthJamaica wrote:I would leave the installment loans alone, just continue to make your payments.
( 2 of the 3 installment loans are at higher interest than his cards, I would also attack the loans)
With revolving accounts, I would recommend the snowball method:
1. Stop using cards. (Most important)
2. Pay off smallest balance first, then next smallest, and so on.(Works well when one has a lot of cards and loans - Like your situation)
3. On other cards pay minimum + something each month.(Add an extra $ 20 to each)
As each balance turns to zero, that will free up your remaining monthly cash to apply to the next smallest balance.(+1)
After you've paid off a subprime card with an annual fee, close the account.
(+1)
As to the other accounts, leave them in place.
(Until all debt is gone, then some more cleaning might be in order)
Even without the snowball advantage of freeing up extra money to attack the debt, this is doable in about 1.75 years.
With the snowball about 1.5
I think you have some great advise and suggestions above. I would definitely follow the snowball method myself. With some self-control, you should be able to knock out your debt in under 2 years. If you can throw more money at the debt, that'll definitely help bring that time table even shorter. If it's possible to add a part time gig, I would do that as well. Never hurts to have extra cash if you have the time for it.
