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50K in debt Please help with a plan


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I turned our credit around years ago with the help of this board but after changes to one of our major contracts, I started having to use credit cards again. I've paid off a few small cards and am coming close on a few others but I could really use a plan of action. I'd love to consolidate but as we are self employed, it's harder to do. If it were possible to consolidate just on cards, I'd do it in a heartbeat but I owe too much. I would appreciate any and all input. Here is my info:

 

Citi Business Card $6794 owed CL $7k 29.9%

 

Wells Fargo $1781 owed CL $2300 27%

 

Amazon Card $2034 owed CL $3k 24%

 

Cap 1 Spark Business $9656 owed CL 10k 22.49%

 

Cap 1 Platinum MC $3446 owed CL 4k 15.65%

 

Cap 1 Platinum MC $623 CL $750 11.9%

 

BofA Platinum Plus $1745 owed CL $2500 0% intro

 

Chase Slate $791 owed CL $5k 29.99%

 

Amex Platinum $15,617 CL $60k 16.74% on pay over time

 

Lowes $2k owed CL $10k 0%

 

Sears $2k owed CL $10k 0%

 

With my zeroed out cards factored in, myFICO puts my utilization at 75%.

 

Experian Fico 719 TU Fico 716 Equifax Fico 734

 

I feel a little better just looking this stuff up and getting it all out there. Thanks for any help!!

 

 

 

 

 

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Pay the minimum on everything and throw all the extra towards the highest APR first. When that's paid off, move on to the next highest APR until everything is paid off. That's the fastest way to pay it off while paying the least amount of interest.

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Our income can vary widely as we are contractors but I've always been able to meet minimums even on months when we are waiting on payments. But in general, I have roughly $500 extra each month that I use to pay the cards down. I've been working on the Chase card the hardest to get rid of one of the highest rates.

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1) Chase Slate $791 owed CL $5k 29.99%

2) Citi Business Card $6794 owed CL $7k 29.9%

3) Wells Fargo $1781 owed CL $2300 27%

4) Amazon Card $2034 owed CL $3k 24%

5) Cap 1 Spark Business $9656 owed CL 10k 22.49%

6) Amex Platinum $15,617 CL $60k 16.74% on pay over time

7) Cap 1 Platinum MC $3446 owed CL 4k 15.65%

8) Cap 1 Platinum MC $623 CL $750 11.9%

9) BofA Platinum Plus $1745 owed CL $2500 0% intro

10) Lowes $2k owed CL $10k 0%

11) Sears $2k owed CL $10k 0%

As you work on paying them down, in the above order, your improving credit will eventually get you eligible for money saving offers loans at lower rates … Just put what you can toward the highest rate after you account for minimum payments and keep track of rates that may change due to the end of promo periods … This would be a good time to cut expenses in draconian fashion and see if you can tackle this debt. All the possibilities or impossibilities are available through extensive analysis of the numbers.

Edited by mec
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I would pay off Chase Slate, Wells Fargo, Cap One Platinum ($623), and Amazon to knock out 4 accounts. Citi Business and Cap One Spark need to be BT'd to one new card... maybe a CU. Others can offer suggestions on this one. Right now you have 11 accounts with balances. Not sure if best to knock out the 4 accounts first before applying for whatever, or not. Others will chime in on that too.

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I grasp the "snowball" concept and targeting your highest rate debts for priority repayment, but I disagree with the suggestion of paying minimums on all other debt. mzmercury is hamstrung here, in part, because she's pushed up against most of her credit limits. One key opportunity to loosen things up (particularly when it comes to opportunities to open new 0% bt cards) would be to aggressively seek CL increases.

 

However, so long as a creditor sees high utilization combined with minimum monthly payments, the chances of such increases is practically nil. I strongly suggest fixing monthly payments of most of the debt at somewhere between 125% and 200% of the required minimum monthly, and maintain those payment amounts going forward. There's at least a reasonable chance that after 6 mo those lenders will be amenable to a CLI.

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My first thought is that one or both of you might consider getting a second part-time job. And throw all the money from it toward the debt. Just temporarily until it's paid off or at least until you feel more comfortable with your progress.

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I grasp the "snowball" concept and targeting your highest rate debts for priority repayment, but I disagree with the suggestion of paying minimums on all other debt. mzmercury is hamstrung here, in part, because she's pushed up against most of her credit limits. One key opportunity to loosen things up (particularly when it comes to opportunities to open new 0% bt cards) would be to aggressively seek CL increases.

 

However, so long as a creditor sees high utilization combined with minimum monthly payments, the chances of such increases is practically nil. I strongly suggest fixing monthly payments of most of the debt at somewhere between 125% and 200% of the required minimum monthly, and maintain those payment amounts going forward. There's at least a reasonable chance that after 6 mo those lenders will be amenable to a CLI.

 

I mostly agree. Even paying the minimum + $10 is better than paying the minimum only. I believe the computer flags you for paying exactly the minimum only... but that's just a guess. I don't know squat :D. Does the Citi Biz, Cap One Spark, and Amex Plat (pay over time) report? Or, which ones do? TIA

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I have never asked for CLI on any card in all these years. That's why I'm showing those tiny cards as well. I've also never asked to combine my Cap 1 Platinum cards. I have the two showing and a tiny one with a $300 limit that has $0 balance. I don't think I've paid bare minimum on any cards in a bit...it's just not a consistent amount. Sometimes it's double my payment and sometimes it might just be $30 more. That being said, I do occasionally have payments go a day past the due date. Not a recordable late, but I have received late payment fees. This is the nature of being a contractor and not knowing when we'll get paid. Does a CLI involve a hard pull?

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Just a thought, in case you come up against a worst case scenario some day. Business cards may have arbitration, but if they do it requires you to pay half the cost of the arb, so no good there. Cap One, Chase, and BofA removed arb in 2010. Me, I would tackle those first, because in the event you are not able to pay and they sue or sell these to a JDB, you lose your most powerful method of getting leverage.

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Min pay everything. All remainder towards the highest APR.

 

Cut out all unnecessary spending.

 

Get second jobs.

 

Look at selling any and all unneeded stuff.

 

Look at selling any airline miles you've accumulated.

 

And I hate to be negative, but start researching bankruptcy to protect any assets you have. If the economy goes south anytime soon, you're probably going to be in the position of needing to file.

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He's never asked for a CLI on any of his cards. *Assuming he can get his spending under control*** (No sense in just racking up even more debt.) Which of the above lenders is he most likely to receive CLIs from; and which would he risk having his accounts shut down from asking with such high UTIL?

​Lowering his UTIL for a low interest loan, along with paying min+$10, along with snowball debt payoff

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I asked for a CLI from one of my zero balance Cap 1's. They declined and stated that my credit score was 626 on Equifax! Now I know there are a variety of credit products available to different industries and there is a variance in what I'll see but when I pulled myFICO for Equifax I was given 734. The gap shouldn't be THAT wide, should it?!!

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No, you just have to learn which one is which. The experts will start updating this thread for us, because they know which is which. Be patient. :)

 

There's probably a thread about it. I'd look for it, but I have to take my Pixel XL back to Verizon for the umpteenth time because right now it's a pretty brick. :(

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I asked for a CLI from one of my zero balance Cap 1's. They declined and stated that my credit score was 626 on Equifax! Now I know there are a variety of credit products available to different industries and there is a variance in what I'll see but when I pulled myFICO for Equifax I was given 734. The gap shouldn't be THAT wide, should it?!!

 

Cap One used to use a FICO 04 version (mortgage score) in the past, not sure if that is still the case. Also, they could have used a score pulled a month ago. Check the letter for FICO spread (300 - 850 or something different), FICO date, or any other relevant info.

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I asked for a CLI from one of my zero balance Cap 1's. They declined and stated that my credit score was 626 on Equifax! Now I know there are a variety of credit products available to different industries and there is a variance in what I'll see but when I pulled myFICO for Equifax I was given 734. The gap shouldn't be THAT wide, should it?!!

 

Cap One used to use a FICO 04 version (mortgage score) in the past, not sure if that is still the case. Also, they could have used a score pulled a month ago. Check the letter for FICO spread (300 - 850 or something different), FICO date, or any other relevant info.

 

^^^^^^^ Crap 1 still uses the old score versions they haven't got with the 20th century yet. :wave:

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Okay, yes, according to the letter, it was pulled on May 1st. My score still shouldn't have been that low, but it was before I paid off the last two smalls cards.

 

This was an experiment to see if they'd even give me CLI's since I've never asked for one. But I've had this card for 8 years or so and they've never increased it. I'd put anywhere from $10 to $100 here and there and paid it off. Shouldn't I have been offered CLI's automatically? How long should I wait before requesting again?

 

Also, how do you get strategic when creditors are using different FICO versions as in this case?

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