Ladies and Gents: My situation.

I have a LOT of money on credit cards.

Currently:

6k on Amex - 0% just ran out, its now 8.9 - and my credit line was just decreased to 6400 (thanks Amex)
6.3k on Chase - 0% until March of 2010
1.6k on FredMeyers Jewlery CC - 0% until May 2010

I have no other balances on my CCs (around 40k total in all CC lines) with a FICO of 725-738 on all 3 CR

Through a mixture of student Loans for living, GI Bill, and part-time work, I currently have 16k. This money is for living through December. In addition to the money I have on hand, I am paid 1068 / month for the GI Bill and I make approximately $600 working one weekend a month.

My monthly living budget is $1600, with October bills having already been paid.

What I am thinking:

Paying off both the Amex and the Chase card in full. This would eliminate both payments from my monthly bills and really straighten out my revolving credit balances. I am not all that concerned about the Fred Meyers card, the engagement ring was purchased in May and will be close to being paid off come next May. My biggest question is wondering whether or not I should wait on paying off the Chase card? Any thoughts?

If you want to let Chase play out at 0%, I'd consider stashing enough money to pay them off in savings. They've been on a rate jacking extravaganza lately.

From all the horror stories I have been hearing I would avoid paying off your CCs in one big payment.
A lot of ppl has had their CL decreased or their cards canceled all together.
I already said to myself that if I were in your situation I would pay $1000 a month until the card was paid off.
In addition to using the card on some kind of regular basis (say for gas and paying that off in full at the end of the month).
I think that would keep you under the radar.

Sure you will incur a bit of interest BUT 100 bucks (over 6 months) is a small price to pay to keep your cards intact.
I have no proof that this would work but its the best I could think of.

Good Luck

No need to pay the biils off immediately. Your cash flow is limited and you have not mentioned any emergency fund in addition to the 16k you have saved, better to pay off 1k per month on the Amex and then tackle the chase card when that is done.

I don't subscribe to the philosophy of not paying off a card for fear of getting it canceled. if that happens then get a new card from another issuer.

I'd pay off only what is not at 0%. Put aside the money to PIF on the others before the 0% expires.

+1

Plus, DONT live in fear of CC issuers closing, chasing down balances, etc. You have to do what is BEST for you inhouse and anything can be recovered in the long run.

Yup!

Pay these clowns off. You can always go back into debt if you choose to.

Thanks for the replies...

I have slated my web bill pay to payoff the Amex in full this week. I will then make Amex my primary daily cc for awhile, with a PIF tactic from this point forward. This is my final year of school - so hopefully my situation will be dramatically improved next year.

I'll hold off on paying down the rest of the 0% balances. It would be nice to have no revolving debt... but perhaps I'll get there soon enough. Thanks again for all of the input.

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