Need help with a strategy

[BrandonP]

This is my first post but i've been reading for a few months now and trying to dig myself out of debt hole. Currently renting and paying 12% on my truck, i'd like to refinance to save money and I'm looking to buy a home within 1.5-2 years. I'd like some advice on how to tackle my debt shown below. The only one not listed is my truck which is 11500/18000. My goal right now is to get ficos up and over 700 to start with and then hopefully refinance. TU - 642 EX - 658 EQ - 678 Also, one collection that is a little over 2 years old. Trying to GW right now. Thanks for any insight. Sears 1250.00/ 493.00 24% apr
Fred Meyers 3500.00/ 2722.00 0% apr - goes to 24% in December
Sony 2600.00/ 350.00 24% apr
Amex 1100.00/ 650.00 19% apr
BofA 20000.00/13,300.00 15% apr

Message Edited by BrandonP on 05-12-2008 08:42 AM

[Marvintran]

Hi brandonp, If you pay down your debt down to about 10% Ult your scores will take a huge jump and

those high balances and interest are killing you. With those scores you're well qualify for a nice CL

and lower interest rates if you join a credit union. Here are my favorites,

Pen Fed C U

Navy C U

and Alliant F C U

http://www.creditunion.coop/cu_locator/quickfind.php

[Anonymous]

BrandonP wrote:

Sears 1250.00/ 493.00 24% apr
Fred Meyers 3500.00/ 2722.00 0% apr - goes to 24% in December
Sony 2600.00/ 350.00 24% apr
Amex 1100.00/ 650.00 19% apr
BofA 20000.00/13,300.00 15% apr

I'd start with the Sony and get it PIF. Then take that payment and add it to the Sears payment and get it PIF. Then take both those payments and add to the Amex payment and PIF. Then work on getting the Fred Meyers paid as low as possible while still 0%.

When you get one PIF, sockdrawer it. Don't think of the money that you were using on that payment as "extra money" use it to pay another card down.

You have balances on all the cards and are at ~60% utilization. FICO likes seeing balances on less than half the cards and for lots of points you want your total utilization <9%.

Message Edited by sidewinder on 05-12-2008 10:32 AM

[BrandonP]

Well, I just pulled a new TU report and its up 42 pts. The last score is a little over a month old so i'm pretty happy with that increase. Looks like i'm not too far from 700 after all. Ex just needs to hurry up. I guess utility is all I can focus on right now, huh?

New scores are
TU - 684
EQ - 678
EX - 658

[Anonymous]

---

BrandonP wrote:
Well, I just pulled a new TU report and its up 42 pts. The last score is a little over a month old so i'm pretty happy with that increase. Looks like i'm not too far from 700 after all. Ex just needs to hurry up. I guess utility is all I can focus on right now, huh?

New scores are
TU - 684
EQ - 678
EX - 658

---

Utility is your greatest tool in increasing score at this point, unless you have collections/public records/charge offs/other derogatory accounts. You didn't mention any.

[BrandonP]

I have a paid collection from Sept 2005. I sent a GW letter a week ago so I'm hoping for it to be deleted. Only other is a 60 day late from March 2002.

Message Edited by BrandonP on 05-12-2008 03:22 PM

[hmcbride222]

Wow.. I feel like you do !!! I think i need a strategy and just don't know where to start yet.. I do have some negative things on my report that i have been working on cleaning up.. Eventually need to get a house.. Will be laid off soon and trying to get everything in order.. Guess i would just like a strategy too.... I have called all my cards and asked for reductions on APRs.. You should see the crappy excuses i get.. So i have given up on that... Heres my story: Pulled my credit report for the first time in a year and wanted to cry.. Everyone looks at it now.. If you are looking for a job, to transfer to a lower interest card... So i am trying to clean everything up....

Please any ideas would be greatly appreciated.. Even if its just what to pay first !!

Dell:  Bal: $1302.45/ Limit $2000.00   APR 29.9%.. I know... CAnt stand them. First thing i m paying with severance.

Lane Bryant: $429.35/$100.00  APR 22.8%.. No overlimit fees. I was late and they lowered the limit.    

Cap One: $448.37/ $500.00     APR 25.15% Messed up during introductory..

Sears: $485.03/$500.00      APR 22.15%

Discover: $3916.74/ $5000.00   APR 15.9%

Besides school loans, these are my issues !!

[marty56]

It comes down to which will motivate you more,  a higher FICO score, or CCCs being paid off one by one.

For FICO purpose, I would always attack the card with the util first.  The reason is that you will see your score increase faster which would provide you momentum to keep going.

While I was in DMP (and pre-FICO score aware) I liked to see the accounts being paid off one by one.  They went after the smaller balance cards first.  Dave Ramsey also recommends this approach.  Since I had a lot of debt, it made since to do it this way since I got momentum from seeing accounts become 0 balance.

I would say that if you can pay down your debt in a year or less I would go into FICO mode and pay the util down.  If it will take say 2 or 3 years (or more), then go after the smaller balance cards first.