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Need advice on how to attack debt

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Established Member

Need advice on how to attack debt

Hello everybody. I am seeking advice on what would be the best way to attack my debt.
Over the last 5 years or so, I have accrued quite a bit of debt. Overall, I would say that my total debt between credit cards and person loans is around $35,000. Here is how it breaks down with credit used and total limits.

Capital One Venture Card - $9,800/$10,000
Discover It Card- $4,063/$4,100
Elan Financial Card- $1,950/$2,000
Navy Federal Platinum Card- $3,950/$4,000
Southwest Premier Card- $2,500/4,000
Chase Freedom Card- $450/$500
Lending Club Personal Loan- $5600 left/$10,000
Rock Valley CU Personal Loan- $5,500 left/$8,000
ABD CU Personal Loan- $2,600 left/ $3,000

I have a bonus I will be receiving from my job of around $4,500, and will be attempting to pay some of my debt with it. But have no clue as to which debt to attack first. All of my cards have around the same APR of 25% besides navy federal, which is 12.79%. My Lending club Loan is at 32% APR, Rock Valley and ABD loans around 13%.

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Valued Contributor

Re: Need advice on how to attack debt


@silkdadadd wrote:
Hello everybody. I am seeking advice on what would be the best way to attack my debt.
Over the last 5 years or so, I have accrued quite a bit of debt. Overall, I would say that my total debt between credit cards and person loans is around $35,000. Here is how it breaks down with credit used and total limits.

Capital One Venture Card - $9,800/$10,000
Discover It Card- $4,063/$4,100
Elan Financial Card- $1,950/$2,000
Navy Federal Platinum Card- $3,950/$4,000
Southwest Premier Card- $2,500/4,000
Chase Freedom Card- $450/$500
Lending Club Personal Loan- $5600 left/$10,000
Rock Valley CU Personal Loan- $5,500 left/$8,000
ABD CU Personal Loan- $2,600 left/ $3,000

I have a bonus I will be receiving from my job of around $4,500, and will be attempting to pay some of my debt with it. But have no clue as to which debt to attack first. All of my cards have around the same APR of 25% besides navy federal, which is 12.79%. My Lending club Loan is at 32% APR, Rock Valley and ABD loans around 13%.


There are two main ways people pay down the debt:   snowball or avalanche.  
Snowball:  Pay the minimums on all and then pay whatever you have left over onto the smallest debt.  When that gets paid off, "roll" that payment into the (new) smallest debt plus that one's minimum you've been paying.  It's apparently very satisfying, since most of your debt is the same APR, this might work for you.
I'm a math type, so I like avalanche:  using the same concept - paying minimums on everyone and then pay the largest APR (%) first and then work your way down the APR list.
Leave one installment loan open/paid last, so that you can make sure to keep your credit mix up (revolving + installment loans score better than having no reporting installments)

If you wish to maximize your FICO (which is probably why you're on myfico), you will want to pay them down to their threshholds in order.
Get every debt under 88.9% utilization, then 68.9% utilization, 48.9, 28.9, and 8.9%   Those are the breakpoints that appear to give FICO scoring points to you.

Good luck!




Garden goal: Completely clean reports and a gold spade (which, at my current rate, is never going to happen...)
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Established Member

Re: Need advice on how to attack debt

Thanks for the advice
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