Hi All!
I posted at the beginning of the year that I was planning on filing a Ch7, as I got into a ton of debt. I am happy to report that I will be receiving about 60K at the end of the month and will be able to pay off some of it. I am looking for some suggestions on how I should pay these down:
- 23K - 18% interest
- 14K - 15%
- 23K - 13%
- 5K - 19%
- 6K - 10%
Now...do I pay them all off as much as I can and save 0? I am getting ready to move, so I will have costs associated with that, plus I need to buy new bedroom furniture for my kid. I appreciate all thoughts.
In order to get a bit of a clearer picture, we need some more details. What are the limits on each of those cards? Also, are you no longer filing BK? And, if so, how much monthly do you have to put towards paying off the remainder of these debts after applying all/most of that 60k?
As @OmarGB9 said more details needed. Off the cuff. The higher interest should go first. Saves $ in the long run. But depends on what is the util on these cards.
Another question: are you cash flow positive and in a position to pay the remaining debts over time and save money if you put 60k toward these debts?
If you are, and assuming none of these debts are delinquent and you have no derogatory tradelines, I would put 60k toward these debts and leave the remaining 11k on the 13% interest card. Once your score updates, I would look for a 0% transfer card or a decent personal loan option to pay the remaining balance. Assuming you've built the discipline to use the cards responsibly and stop running them up.
If you aren't cash flow positive and don't have a path to pay off the remaining balance, then you would have to take that into account and definitely need to leave yourself a cushion until you are.
Thanks for the replies. Sorry for leaving off the limits, I edited my post a few times and accidentally deleted it. Anyway, they are all completely maxed out 100%. I am not delinquent on anything, I have still been making payments on everything.
I am no longer planning on filing bk since I have money and can have a more manageable payment. Once this is settled, I will only have my car payment, $400/mo @ 2% and student loans of $100/mo. And house related costs. I should have about $1,600 or so left to save and pay things down.
Thank you all for the replies!
That's what I planned to to as I looked at the numbers. I thought of keeping a small cushion amount but maybe not.
I can't wait to see the score in crease. I'm sitting in the 600s and would love to be closer to 700!
I also plan on being more active in the forums. Though my balances were due to circumstances out of my control, a lot were my own doing and when I was more active on the forums I was better mentally. So thank you all for being who you are!
Your increases will be pretty crazy going from all cards maxed to one under 50%. I went from 38% overall to 8% and gained 55-65 points per bureau. You're dealing with three additional scoring breakpoints and multiple additional maxed out penalties. It'll be big 
