Managing My 8 CC Most Effectively with My Cash Flow Problems on the Horizon

[BubbaEarl]

I have cash flow issues just over the horizon. I am a salesman and been through this before, but this time it is going to be more severe and I am going to have to have to use my CC more than in the past and they are all so different. I have 8 main CC's and they total up to $104,000 limit:

*BB&T VISA Signature Limit: $18,000 Interest Rate: 5.15 purchases & 7.15 Cash There is no sublimit for cash advances
*Chase Freedom Limit: $22,000 Interest Rate: 8.24 purchases & 19.24 Cash Sublimit for Cash $4,400
*Chase Freedom Limit: $ 9,500 Interest Rate: 12.24 purchases & 19.24 Cash Sublimit for Cash $1,900
*Chase Amazon Limit: $ 6,000 Interest Rate: 13.24 purchases & 19.24 Cash Sublimit for Cash $1,200
*AMEX Blue Limit: $15,000 Interest Rate 22.24 purchases & 25.24 Cash There was no sublimit for cash
*Citi Simplicity Limit: $ 9,000 Interest Rate 17.99 purchases & 17.99 Cash Sublimit for Cash $2700
*Synovus Bank of N.GA (HomeEQ) Limit $24,500 Interest Rate 3.50 purchases & not sure not sure of cash limit or sublmit

Estimated $15,000 outstanding debit combined on all cards. An estimated $10,000 of that debt on the Synovous Home Equity Secured Card

The two highest limit unsecured CC's also have the lowest interest rate, so I know we should use those two the most

The Citi Simplicity CC I just got & it has 0% interest for 18, but a 3% fee to transfer balances. Would the wise action to take be to transfer the $9,000 of what is owed of the $10,000 owed on the Synovus Home Equity secured line of credit and pay the 3% fee to take advantage of the 18 month 0% finnacing introductry offer from Citi and then pay the entire $9,000 back a week before Citi's 0% financing promotion ends? Just basically forget about for 18 months.

I am going to need to hold on to as much cash as I can for about a year and will be driving up my CC Debit. I believe I have a lot options and flexibilty, but I am not sure how to use theses options most effectively. I welcome any suggestions. I try to study up on the rewards programs, but have really not taken the time to know what rewards programs on the above cards is best. I start to study it and it just gets way to confusing.

My credit is excellent at the moment, but it is going to go down when I leverage myself over the next 12 months, but it will bounce back once I get through this. I got that terrible AMEX card about 4 months ago and the Citi Simpllicity just yesterday. So, I have had several credit inquires recently, so maybe my credit has dropped from excellent to very good. Should I apply for one or two more CC while my credit still looks good?

Any advice from someone that has a talent for understanding CC and actually loves this stuff would be very appreciated. Thank You Brent

[NorthCol]

Looks fairly simple. Put your monthly expenses on your Chase Freedom at 8.24 to free up cash and to earn rewards. The BT doesn't look like a good idea because of high util and the interest you save is not much. Then repay the freedom once you have the cash.

[chugs102]

While your utilization is still fairly low, I would apply for new cards with low introductory APR or balance transfer promotions.

 

Of course, only take this route if you don't plan on doing an BK or CO, as that would constitute fraud.

[ctb89]

Looks fairly simple. Put your monthly expenses on your Chase Freedom at 8.24 to free up cash and to earn rewards. The BT doesn't look like a good idea because of high util and the interest you save is not much. Then repay the freedom once you have the cash.

It's not quite that simple. It's 3.5% per annum for 18 months vs 3% for the whole 18 month period, and if he's just making the minimums, the interest is going to compound on the 3.5% (paying interest on the unpaid interest). I'm very tempted to do a quick DCF model but I think this is pretty cut and dry. Max out your low interest cards and other sources of funding. Forget about UTIL during cash flow volatility. You know what looks worse than temporary high utilization? Missed payments. Also, forget about rewards unless you plan on carrying the balance for a period short enough where the difference in interest is less than the value of the rewards AND when it doesn't jeopardize meeting your obligations.

[BubbaEarl]

I went ahead and another Chase Slate with $9000 Limit and 0.0% balance transfer fees 15 months and Cash 23.99, so I can move $9000 my synovous of that 10 and forget about it until about a week before and pay it off? I guess Chase Likes me

 

Also Capitol One gave me $3000, but I am not sure of terms. to and to the other 8 cards.

[hdporter]

If you're looking to minimize cash outflows in the near term, bear in mind that most credit cards require minimum payments of anywhere from 1% to 3% of the outstanding balance. On the other hand, my former Chase HELOC required monthly payments equal only to the monthly accrued interest (about 1/4% of the outstanding balance).

[Randomalities]

You keep saying "forget about it" until the month before the promo ends.... you ARE still making minimum payments in that timeframe, right?

[Beachgal]

You keep saying "forget about it" until the month before the promo ends.... you ARE still making minimum payments in that timeframe, right?

 

Yes, of course the OP must make minimum payments. In addition, OP, in your original post you stated "...and then pay the entire $9,000 back a week before Citi's 0% financing promotion ends." You don't want to cut it that close. If you decide to go this route, read the fine print VERY carefully to determine exactly when the balance must be paid off to avoid finance charges. Citi can be a quite obtuse in making that date crystal clear. Determine that date and then add in a time buffer to be certain there's no gotcha!

[BubbaEarl]

You keep saying "forget about it" until the month before the promo ends.... you ARE still making minimum payments in that timeframe, right?

I did not realize about the minimum payments. Feeling pretty dumb about that

[Tyra]

 

You keep saying "forget about it" until the month before the promo ends.... you ARE still making minimum payments in that timeframe, right?

I did not realize about the minimum payments. Feeling pretty dumb about that

The minimum monthly payment is usually 1% or 2% of the balance, you should be able to find it in your card agreement. If you miss one minimum payment the 0% apr can go to the penalty rate which is something like 29% apr. So you want to make the minimum payment every month.

Edited May 24, 2013 by Tyra

[Randomalities]

I figured you didn't know, that's why I asked ;-). We all learn somehow.

 

 

 

You keep saying "forget about it" until the month before the promo ends.... you ARE still making minimum payments in that timeframe, right?

I did not realize about the minimum payments. Feeling pretty dumb about that