Need Advice - Rebuilding Credit

[Anonymous]

I'm 25 and currently in two masters programs. I have really messed up with debt throughout college. Short story: I'm trying to rebuild my credit and pay down my cards. I have no idea where to start or what my best option is; I have considered bankruptcy at this point too. Here's an outline of my cards:

Wells Fargo (Closed) - $1942

Best Buy (Closed) - $557

Apple - $3908/$4000 @ 21.99%

Kohl's - $1793/$2500 @ 26.74%

Care Credit - $5668/$15000 @ 26.99% (only $700 at this APR, other charges on def./no int. if PIF)

Navy Fed More Rewards - $2664/$2700 @ 18%

Upstart Loan - $2298 @ 24.68%

Transunion - 621

Equifax - 627

FICO 9 - 649

Monthly Inc. - $1540  

[Red1Blue]

Hi @Anonymous Do you have any installment loans? I think having installment loan can add credit mixture and improve scores. I'll let others chime in and give you suggestions. I see you have upstart loan. I wonder if that is considered as an installment account or not.

[Anonymous]

I'm not sure what my Upstart loan is listed as. I know it's a set monthly payment of $69.99 for the life of the loan. Outside of the Upstart loan, I also have student loans (all federal loans) and a car loan (19k).

[FireMedic1]

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@Anonymous wrote:

I'm trying to rebuild my credit and pay down my cards. I have no idea where to start or what my best option is. Here's an outline of my cards:

Wells Fargo (Closed) - $1942

Best Buy (Closed) - $557

Apple - $3908/$4000 @ 21.99%

Kohl's - $1793/$2500 @ 26.74%

Care Credit - $5668/$15000 @ 26.99% (only $700 at this APR, other charges on def./no int. if PIF)

Navy Fed More Rewards - $2664/$2700 @ 18%

Upstart Loan - $2298 @ 24.68%

Transunion - 621

Equifax - 627

FICO 9 - 649

Monthly Inc. - $1540  

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How much dispoable $ do you have after bills. Your yearly income is around 18k with 14k in debt. Right off the bat. Payoff CC before the 0% APR ends. Keep making payments, no lates. Need the income info for a responce.

Edit: Just saw the upstart loan. Didnt need that. You already have installment loans with the car and student.

[Anonymous]

Outside of my credit cards (currently a total of $447/month payment), I have my car payment ($392), phone ($85), room rent ($150), and storage unit ($56). As of now, that puts me at $1,130/month and my net income each month is $1,540. Food/gas are covered as I ride with a housemate to work everyday and don't drive much outside of that and we have a cook/purchase grocery deal in our house (I cook).

[FireMedic1]

Tough one. Anyway to get more income? Part time job, Lyft, Uber. Theres no easy way out of this. It will be years. Dont know your job. Thought about a career that pays better. Hospitals will pay for tuition no matter what job you have to become a RN, Xray Tech, Resp Tech, ect. Probably might pay more too.

[Anonymous]

I am in two Master's programs right now. One I will finish this spring, the other December 2022. A part time job isn't really feasible right now between a full-time job and getting two degrees at the same time. With that, my income will be no less than $65k starting either September of 2022 or 2023. I'm looking at trying to get this under control given the circumstances I currently have. I know it's not good. 

[Anonymous]

I think more so why I am posting is to get input/advice on what order to pay them down/off in and see if anyone has input/advice on 'out of the box' options (debt consolidation, banruptcy, refi).

[OmarGB9]

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@Anonymous wrote:

I think more so why I am posting is to get input/advice on what order to pay them down/off in and see if anyone has input/advice on 'out of the box' options (debt consolidation, banruptcy, refi).

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Considering you're so close to finishing your degrees, I wouldn't burn your credit by filing for BK. I'd just try to hold on for a bit longer and not miss any payments. Perhaps do some odd jobs for extra money (i.e. mow lawns for people, yardwork, etc. or perhaps Uber/Lyft/DoorDash if you have a bit of spare time. It doesn't have to be "part time." Literally just any time you have some down time).

As far as order to pay them in, you could either do snowball or avalanche method. Snowball is paying off debt in order of smallest amount to largest, while avalanche method is focused on paying highest interest rate first, then going down the list.

Snowball method has the advantage of instant gratification, since you see balances zero out quicker, however it's a bit more expensive in a way, since you prolong high interest balances.

Avalanche method saves money on interest, but there are no immediate gains, especially when balances are high. 

[BB30]

I haven't read all of the replies yet, and I'm not an expert, but I don't think bankruptcy is a good idea. You're just in a bit of debt, nothing crazy. If you can keep paying everything for now then maybe just ride it out until you graduate. 

Looks like you work full time but only make $8.50/hr? If feasible, find a better paying job. Lots of basic jobs pay at least $12....depends on the area and your availability though but it's an idea.