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turbobuick

Credit Card Consolidation and 10k cash

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Was wondering what would help me the most.... 

 

Most of my cards are near 100% utilization, and all are 20%+ APR.  

 

I have 10k cash available to me at 0% for a year (family member loan) that I’ll be making monthly pymts on @ $833/mo

 

I’m thinking of doing the snowball method but also thinking of bringing everything under 90% util.

 

Heres a list:

 

USAA $250 secured card

Best Buy $1000

Comenity Bank $1300

Synchrony Bank $2000

Navy Fed Cash Rew $2800

AMEX $3500

Navy Fed CLOC $9500

Navy Fed Flagship $15000

 

Thanks!

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Also, spoke to Navy Fed and a personal loan interest rate of around 14-18% 60months would be around $450/mo on 18000.  I would wait to apply after a couple months of paying off all of the above debt except the NF Flagship and Navy Fed CLOC.

 

 

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at this point paying the highest APR first and fast is the best option. I wouldn't recommend a new loan, including the own from family.

 

THE ONLY SNOWBALL THAT WORKS IN PAYING HIGHEST APR FIRST... ignore those who say pay the lowest balance. those people don't understand math.

 

there are some good threads in the money management subforum on budgeting. check them out.

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Posted (edited)
46 minutes ago, hegemony said:

at this point paying the highest APR first and fast is the best option. I wouldn't recommend a new loan, including the own from family.

 

THE ONLY SNOWBALL THAT WORKS IN PAYING HIGHEST APR FIRST... ignore those who say pay the lowest balance. those people don't understand math.

 

there are some good threads in the money management subforum on budgeting. check them out.

Thanks!  In terms of paying highest APR first; would it be better to pay off fully or just to <25% util to improve credit?

 

*edit* read a bit more, going to PIF ;)

Edited by turbobuick

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improving credit takes a back seat to paying off debt and saving money on interest. good luck!

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12 hours ago, turbobuick said:

snowball method

Not advised for people with the mental capacity for math or logic.

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$35,350 total debt

20% for 5 years = 936.60 per month

Total amount paid: = $56,196

 

$10,000 at 0% for 12 months = $833.33 per month

$25,350 at 20% for 5 years = $671.60 per month

Total per month for first year = $1,504.93

Total per month for next 4 years = 671.60

Total amount paid = $50,296

 

Looks like you'll save about $6,000 over 5 years with the $10,000 0% for 12 month loan assuming you can pay off all debt in 5 years.

 

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Whichever route you go, ALWAYS focus on the account(s) that cost you the most money.  At this particular juncture, a three-digit score should be waaaaay down the ladder of things to worry about,  While the ratio of cards to cards with a balance IS a factor IN that score, that ratio is not worth losing hundreds and/or thousands of dollars over.  Get the most expensive balances cleared and the rest will sort itself out in due course...

 

The sole advantage to a family member providing you with an interest-free loan is that you won't have an installment balance cluttering up your report.  However, the downsides are that you are risking damage to a relationship with a family member if repayment goes awry and you obviously won't be able to point to a successfully paid installment on your credit report. 

 

As you pay the cards down, don't go crazy and run balances back up, no matter WHAT offers might come in. 

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On 8/10/2019 at 11:35 AM, DollarDog said:

$35,350 total debt

20% for 5 years = 936.60 per month

Total amount paid: = $56,196

 

$10,000 at 0% for 12 months = $833.33 per month

$25,350 at 20% for 5 years = $671.60 per month

Total per month for first year = $1,504.93

Total per month for next 4 years = 671.60

Total amount paid = $50,296

 

Looks like you'll save about $6,000 over 5 years with the $10,000 0% for 12 month loan assuming you can pay off all debt in 5 years.

 

Thanks!  

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On 8/11/2019 at 6:39 AM, centex said:

Whichever route you go, ALWAYS focus on the account(s) that cost you the most money.  At this particular juncture, a three-digit score should be waaaaay down the ladder of things to worry about,  While the ratio of cards to cards with a balance IS a factor IN that score, that ratio is not worth losing hundreds and/or thousands of dollars over.  Get the most expensive balances cleared and the rest will sort itself out in due course...

 

The sole advantage to a family member providing you with an interest-free loan is that you won't have an installment balance cluttering up your report.  However, the downsides are that you are risking damage to a relationship with a family member if repayment goes awry and you obviously won't be able to point to a successfully paid installment on your credit report. 

 

As you pay the cards down, don't go crazy and run balances back up, no matter WHAT offers might come in. 

Really pisses me off at the amount of money I throw away every month due to interest, not gonna happen again!  Thanks!

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14 hours ago, turbobuick said:

Really pisses me off at the amount of money I throw away every month due to interest, not gonna happen again!  Thanks!

Easy to say, harder to do.  If you haven't already, you should take a step back and figure out why you got into this situation and how you can prevent it from happening again.  My guess is it will be one of two things, either buying things you can't afford or not having a sufficient emergency fund. 

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