Members bluesboy Posted May 22, 2009 Members Share Posted May 22, 2009 So I recently graduated from graduate school, and finally have a decent paying job (not great, but much better than a student). I have 5 credit cards with the following (approximate) balances: 45004700350025002500 At the end of this month, ill have $5000 which I plan to put towards this debt in someway. I could: knock out one of the bigger ones, knock out 2 small ones, or pay $1000 on each. what is the best way? Link to comment Share on other sites More sharing options...
Members Mesa4x12er2 Posted May 22, 2009 Members Share Posted May 22, 2009 I'd attack whatever was causing the most interest I also wouldn't close anything totally out. CC companies are closing cards right now and if you pay one off and they lower the limit way down or close it it's gonna hurt your credit. Link to comment Share on other sites More sharing options...
Members GRAF Posted May 22, 2009 Members Share Posted May 22, 2009 Well, depends on who you listen to.Some financial advisers will tell you to knock out the highest balances first, then work your way down, others will tell you to pay off the cards with the highest APR first and then work you way down.I would personally take the full amount and pay off the $4700 card in full....that or hookers and blow, your call. Link to comment Share on other sites More sharing options...
Members TornadoOfSouls Posted May 22, 2009 Members Share Posted May 22, 2009 Spend it on hookers. Link to comment Share on other sites More sharing options...
Members bluesboy Posted May 22, 2009 Author Members Share Posted May 22, 2009 im very tempted to buy a really really nice guitar, but im not going to do it- lol. its a hard decision im forcing myself to make Link to comment Share on other sites More sharing options...
Members bluesboy Posted May 22, 2009 Author Members Share Posted May 22, 2009 I'd attack whatever was causing the most interestI also wouldn't close anything totally out. CC companies are closing cards right now and if you pay one off and they lower the limit way down or close it it's gonna hurt your credit. ok, good advice, i dont want to close my accounts (or have them closed on me) i just want to pay em' down Link to comment Share on other sites More sharing options...
Members JBecker Posted May 22, 2009 Members Share Posted May 22, 2009 I'd probably try and consolidate that debt on a lower overall rate first and then pay off that 5G to that pooled debt, then rip up all the cards but one for essentials/emergency. Link to comment Share on other sites More sharing options...
Members cisspcism Posted May 22, 2009 Members Share Posted May 22, 2009 That is way to much debt to have just out of grad school. get rid of the debt and do not use your credit cards again. You obviously are already spending more than you should be based on whats on debt/credit. Cut up your credit cards too. If you cant afford it dont buy it!!!! Link to comment Share on other sites More sharing options...
Members nedezero Posted May 22, 2009 Members Share Posted May 22, 2009 Well... I would do this... Pay off the two $2500 balances. Take the amount of the minimum payment that you had to make for those, and apply it to the 3500 balance. Do that until it's gone, and apply the payments you have been applying to the three you just got rid of to the next highest one. This is called the snowball method and is the most successful at getting rid of debt. Of course you have to be disciplined and not incur any more debt in the mean time. Link to comment Share on other sites More sharing options...
Members bluesboy Posted May 22, 2009 Author Members Share Posted May 22, 2009 agreed, its too much debt. I was in grad school for 6 years, and not making much. it accrues quickly, especially when music gear is involved Link to comment Share on other sites More sharing options...
Members isvoid Posted May 22, 2009 Members Share Posted May 22, 2009 with your remaining credit buy as much gold as you can before everything tanks Link to comment Share on other sites More sharing options...
Members bluesboy Posted May 22, 2009 Author Members Share Posted May 22, 2009 with your remaining credit buy as much gold as you can before everything tanks lol. or maybe ill buy some shamwows Link to comment Share on other sites More sharing options...
Members bluesboy Posted May 22, 2009 Author Members Share Posted May 22, 2009 This is called the snowball method and is the most successful at getting rid of debt.Of course you have to be disciplined and not incur any more debt in the mean time. with the money im making now, i wont need to use my credit cards unless its really an emergency. Ive been really good about not using them lately, and id like to use this $5000 as a nice jump start to being credit card debt free Link to comment Share on other sites More sharing options...
Members Shine Posted May 22, 2009 Members Share Posted May 22, 2009 close all of the ccs and consolidate them into one loan with a lower interest rate and then pay off the principle with the money. Link to comment Share on other sites More sharing options...
Members isvoid Posted May 22, 2009 Members Share Posted May 22, 2009 with the money im making now, i wont need to use my credit cards unless its really an emergency. Ive been really good about not using them lately, and id like to use this $5000 as a nice jump start to being credit card debt free entertain for a moment the remote, astronomically minute chance you could lose your job next week screeeeeeeeeeeeeeeeech, full stop sorry, those times are gone assume you will lose your job next week, wut's the plan stan? Link to comment Share on other sites More sharing options...
Members nedezero Posted May 22, 2009 Members Share Posted May 22, 2009 with the money im making now, i wont need to use my credit cards unless its really an emergency. Ive been really good about not using them lately, and id like to use this $5000 as a nice jump start to being credit card debt free That's a good thing and you're on the right track. As they say, we have to act our "wage". Trust me. The snowball method works. Link to comment Share on other sites More sharing options...
Members ss454 Posted May 22, 2009 Members Share Posted May 22, 2009 Well... I would do this...Pay off the two $2500 balances.Take the amount of the minimum payment that you had to make for those, and apply it to the 3500 balance. Do that until it's gone, and apply the payments you have been applying to the three you just got rid of to the next highest one.This is called the snowball method and is the most successful at getting rid of debt.Of course you have to be disciplined and not incur any more debt in the mean time. This is the way to do it. Take the smallest balances and knock them out first them apply the payments you were making to them ALL to the next LEAST total amount and when that one is paid off take the total of ALL THOSE PAYMENTS to the next least amount until you have the total of all your payments paying toward the highest bill. Keep making the minimun payment to the higher totals until you can move your extra onto those paymens. 2500-$30 payment (paid off)2500-$30 payment (paid off)3500-$30 payment + $60 (until paid off)4500-$30 payment + $90 (until paid off)4700-$30 payment + $120 (until paid off) Link to comment Share on other sites More sharing options...
Members Uncle_Milton Posted May 22, 2009 Members Share Posted May 22, 2009 I assume you're paying 29.99% on each? Link to comment Share on other sites More sharing options...
Members nedezero Posted May 22, 2009 Members Share Posted May 22, 2009 I assume you're paying 29.99% on each? Doesn't matter. Link to comment Share on other sites More sharing options...
Members grayeyes777 Posted May 22, 2009 Members Share Posted May 22, 2009 Doesn't matter. It does matter. man... if you have good credit then consolidate the remaining balances... after paying off the two smaller balances of course. If i've ever used cc's its been when i have a good balance transfer offer. I've never paid over 5% on a card balance. having been debt free for about 9 months i can say that it's the best feeling ever. never use your cc's again man. for real. Link to comment Share on other sites More sharing options...
Members GRAF Posted May 22, 2009 Members Share Posted May 22, 2009 close all of the ccs and consolidate them into one loan with a lower interest rate and then pay off the principle with the money. No way... if he closes them all his credit score will be destroyed for years to come. Best thing to do is just pay them off over time. $20K in credit card debt really isnt' that unusual these days. Link to comment Share on other sites More sharing options...
Members kissmyace Posted May 22, 2009 Members Share Posted May 22, 2009 I'd pay off the 2 $2500 one's, then cut them up. Then, work on another one Link to comment Share on other sites More sharing options...
Members this is paul Posted May 22, 2009 Members Share Posted May 22, 2009 Credit card debt sucks. If I had that 5k though I could pay mine off! Just stay on track and keep at it regardless. I've been putting as much as I can towards mine every month. Link to comment Share on other sites More sharing options...
Members claffman Posted May 22, 2009 Members Share Posted May 22, 2009 Pay off the debt smallest to largest. The two small ones go. The cash you were paying on those go to the next one, along with the regular payment you were making. That's the debt snowball. There's another Dave Ramsey listener here too. You get a bit of success paying stuff off it makes getting the next goal payoff easter. Link to comment Share on other sites More sharing options...
Members HKSblade1 Posted May 22, 2009 Members Share Posted May 22, 2009 No way... if he closes them all his credit score will be destroyed for years to come. Best thing to do is just pay them off over time. $20K in credit card debt really isnt' that unusual these days. Watch what's going on here!Eliminating your cards will F your credit score! That's what happened to mine! Almost 20K over last 5yrs. Took severance pkg from work and paid off a vast majority of the remaining balances. Then they closed the accts !I was like, man I paid this {censored} off, CC co's closed the accts and my score dropped 45 pts Take time and pay them down. Start with higher CC interest rate first. Then apply that payment towards the next etc. 2-3 years, debt gone. Now that can be great and be bad. Today leave 100-150 bucks on the damn things so your Fico and basic scores are not skewed by closings. If you leave a min of $100 on the cards ( I would) it's not something they can force you to close out. A friend of mine had a Chase card close his acct with a +30 balance. I never heard of them doing that before, but these days who knows. If it was me with 5K, I'd keep 2K in reserve just to cover a month or more of expenses for a worse case. Use the other 3K to apply to debt. Link to comment Share on other sites More sharing options...
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