cancel
Showing results for 
Search instead for 
Did you mean: 

help with what debt to eliminate?

tag
Anonymous
Not applicable

help with what debt to eliminate?

Hello, i figured id come here first before paying for a service. Im in a lot of debt and trying to get my credit back up. ill post a list of everything with APR's below. Im also wanting to get a new car soon thats around 35k. lately i have almost paid off two credit cards. i recently started making good money (1900 a week). which debt would you eliminate first to effect my credit? currently sitting around a 600 depending what company you check. Any help is much appreciated navy fed credit card 18% $129 16th $6500 $6500limit consolidation 18% $195 11th $2267 evo 7.29% $271 11th $8704 checking line 14.90% $50 11th $1400 $1500limit pioneer 23.81% $279 1st $1529 one main 30% $89 1st & 15th $5500 one main 30% $73 1st & 15th $3204 capitol 1 silver 24.74% $59 $414 $2300limit capitol 1 red 24.74% $50 $440 $500limit Navy fed cred.

8 REPLIES 8
Jnbmom
Credit Mentor

Re: help with what debt to eliminate?


@Anonymous wrote:

Hello, i figured id come here first before paying for a service. Im in a lot of debt and trying to get my credit back up. ill post a list of everything with APR's below. Im also wanting to get a new car soon thats around 35k. lately i have almost paid off two credit cards. i recently started making good money (1900 a week). which debt would you eliminate first to effect my credit? currently sitting around a 600 depending what company you check. Any help is much appreciated navy fed credit card 18% $129 16th $6500 $6500limit consolidation 18% $195 11th $2267 evo 7.29% $271 11th $8704 checking line 14.90% $50 11th $1400 $1500limit pioneer 23.81% $279 1st $1529 one main 30% $89 1st & 15th $5500 one main 30% $73 1st & 15th $3204 capitol 1 silver 24.74% $59 $414 $2300limit capitol 1 red 24.74% $50 $440 $500limit Navy fed cred.


You might want to break down the your list a little better, that is really hard to understand??

EXP 780 EQ 796 TU 810
Message 2 of 9
Anonymous
Not applicable

Re: help with what debt to eliminate?

I just want to help you by saying there is no way on earth you should be buying a 35k car when you are in a lot of debt. I say this from experience and to help you...not to criticize I promise. If you can pay your debts off smallest to largest first you will be so much happier and at ease. Best wishes!
Message 3 of 9
Anonymous
Not applicable

Re: help with what debt to eliminate?

The debt to eliminate is all of it Smiley Wink

 

Don't be so quick to spend $ you just started earning. Kill your debt, build an emergency fund, then go into the car you want with a nice down payment, good rate and a reasonable monthly payment.

 

Message 4 of 9
Anonymous
Not applicable

Re: help with what debt to eliminate?


@Anonymous wrote:

The debt to eliminate is all of it Smiley Wink

 

Don't be so quick to spend $ you just started earning. Kill your debt, build an emergency fund, then go into the car you want with a nice down payment, good rate and a reasonable monthly payment.

 


+1

Message 5 of 9
xaximus
Valued Contributor

Re: help with what debt to eliminate?

Definitely would be easier if you put each debt line by line, it would make it easier to read and understand. As others have mentioned, you can use the snowball method (start by paying off the smallest debt and work your way up), also depending on APR, it may be worth to pay off some debts before others to save on interest.


Scores - All bureaus 770 +
TCL - Est. $410K
Message 6 of 9
Revelate
Moderator Emeritus

Re: help with what debt to eliminate?

While formatting is always nice, if you know your APR's simply start paying off the highest first and then move to the next highest.

 

That will get you out of debt the quickest with the least money spent overall in doing so.  Absolutely concur with not buying a new car which is just going to put you further behind: pay off the existing debt first.

 

FWIW I can empathize: I had a ~70k Tesla on order that I *really* wanted; while I absolutely could have afforded it, I realized it made no rational sense to be burdening myself with additional debt (regardless of financing rate or that $7500 tax credit I would've received) when my current car still has life in it and is completely paid off, and I'm in a situation where I don't have to drive as much.

 

Being coldly rational about the opportunity cost: I could put that 70k towards reducing my mortgage by 1/3 or otherwise put it into the market instead... either of which would move my marker towards functional retirement up by a non-trivial amount.   

 

I think the best advice I could offer anyone is don't be a blind consumer: absolutely justify any non-trivial purchase and I would suggest a new car is non-trivial for the vast majority of people.

 




        
Message 7 of 9
Thomas_Thumb
Senior Contributor

Re: help with what debt to eliminate?


@Revelate wrote:

 

 FWIW I can empathize: I had a ~70k Tesla on order that I *really* wanted; while I absolutely could have afforded it, I realized it made no rational sense to be burdening myself with additional debt (regardless of financing rate or that $7500 tax credit I would've received) when my current car still has life in it and is completely paid off, and I'm in a situation where I don't have to drive as much.

 

Being coldly rational about the opportunity cost: I could put that 70k towards reducing my mortgage by 1/3 or otherwise put it into the market instead... either of which would move my marker towards functional retirement up by a non-trivial amount.   

 


@Revelate

From what I read in your other posts you have quite a few high flying equities. Consider some profit taking before the mid term elections and using proceeds to pay down the mortgage. I was enticed to purchase a new car back in April ($14k off $69k MSRP). Kept my old car (2006 Accord hybrid with 167k miles) which I still drive 90% of the time.

 

I could have paid off the remainder of my 15 year mortgage but, instead I have a new car with an additional $900 in yearly insurance. Next week I get to bring the new car to the dealer for some warranty work. Last month an uninsured motorist, driving a car registered in someone else's name with expired plates, nicked my new car's rear bumper. Don't want to file a claim and risk increased premiums. Hope the scratches can be buffed out. The joys of new car ownership Man Frustrated

 

To the OP - As said above, payoff cards with highest APR while also making more than minimum payment amounts on all cards. Not sure what your utilizations are per card but, put a priority on paying down highly utilized cards (meaning 70% or higher) to a more moderate utilization as that may reduce the risk of adverse action such as a CLD.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 8 of 9
Revelate
Moderator Emeritus

Re: help with what debt to eliminate?


@Thomas_Thumb wrote: 

@Revelate

From what I read in your other posts you have quite a few high flying equities. Consider some profit taking before the mid term elections and using proceeds to pay down the mortgage. I was enticed to purchase a new car back in April ($14k off $69k MSRP). Kept my old car (2006 Accord hybrid with 167k miles) which I still drive 90% of the time.

 

I could have paid off the remainder of my 15 year mortgage but, instead I have a new car with an additional $900 in yearly insurance. Next week I get to bring the new car to the dealer for some warranty work. Last month an uninsured motorist driving a car, registered in someone else's name, with expired plates nicked my new car's rear bumper. Don't want to file a claim and risk increased premiums. Hope the scratches can be buffed out.The joys of new car ownership Man Frustrated

 


Hrm, I may well go do that.  Likely things will be confused and the market will react badly and this is going to be my lowest income year for a while so taking the capital gains here might not be a shabby idea.

 

Appreciate the solid idea, thank you!




        
Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.