Members bluesboy Posted May 22, 2009 Author Members Share Posted May 22, 2009 thanks for all the advice guys. As far as me losing my job, im a scientist getting paid by an NIH grant that is guaranteed funding for the next 5 years. As long as my boss and I get along (which we do, and we've known/dealt with each other for 3 years, although i only started working for him about 6 weeks ago), im basically good to go for 5 years, unless i want to leave. Also, I have some other money in reserve that im not touching just in case. That money would cover my minimum payments for quite sometime until i found a job. So anyways, im probably going to pay off the smaller ones, leaving a small balance, like $150, and ill rotate them on my gas charges for my car Link to comment Share on other sites More sharing options...
Members mcr23 Posted May 22, 2009 Members Share Posted May 22, 2009 I'd attack whatever was causing the most interest. this Link to comment Share on other sites More sharing options...
Members jaytee123 Posted May 22, 2009 Members Share Posted May 22, 2009 See if you can consolidate the balance on one credit card. I had about the same balance on two credit cards, consolidated on a capital one at 2.9% fixed and paid it off in 3-1/2 years. Link to comment Share on other sites More sharing options...
Members jaytee123 Posted May 22, 2009 Members Share Posted May 22, 2009 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. It depends on the amount of credit on each card. Having a lot of cards hurts your score, too. I only have two, but my credit limit between the two is 25,000. My credit score is 799-820, depending on which agency you choose. Link to comment Share on other sites More sharing options...
Members nedezero 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. Yeah that was me. It's hard to convince folks that chasing interest rates versus balances isn't very successful. But I understand why they think that way. This debt culture is the scourge of us all. Link to comment Share on other sites More sharing options...
Members nedezero Posted May 22, 2009 Members Share Posted May 22, 2009 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. I understand what you're saying, but in practice, debt consolidation usually doesn't result in a change in behavior, thus leading up tp more debt again. Leaving the debts as they are, and attacking the balances smallest to largest regardless of interest rates has nearly the same net effect mathematically, and results in a change in habit that leads to the discontinuation of debt as a means to obtain "wants". Link to comment Share on other sites More sharing options...
Members Scott K Posted May 22, 2009 Members Share Posted May 22, 2009 Damn, dude. How did you rack up so much credit card debt? Link to comment Share on other sites More sharing options...
Members Ron Burgandy Posted May 22, 2009 Members Share Posted May 22, 2009 Please list the balances vs. the available credit limits, along with interest rates for each card. In this environment, I would not recommend throwing the entire $5000 at the balance, unless you already have a healthy savings account. Anyway, list out the above info, and I can help you from there. Link to comment Share on other sites More sharing options...
Members stanbog Posted May 22, 2009 Members Share Posted May 22, 2009 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) While i agree on the above, i did a bit of simple computation:3500/90 = 38 Months4500/120 = 38 Months4700/150 = 31 MonthsTotal = 107 Months = 8.9 years:poke: Link to comment Share on other sites More sharing options...
Members cobrahead1030 Posted May 22, 2009 Members Share Posted May 22, 2009 pay off whatever has the highest interest rate Link to comment Share on other sites More sharing options...
Members tetaJ 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:45004700350025002500At 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? Wow, you owe all of that? Link to comment Share on other sites More sharing options...
Members Mesa4x12er2 Posted May 22, 2009 Members Share Posted May 22, 2009 Please list the balances vs. the available credit limits, along with interest rates for each card. +1 In the event you pay one off, your issuer may close it. If that happens and it increases your used vs. available credit ratio your score will fall hard. Link to comment Share on other sites More sharing options...
Members Ron Burgandy Posted May 22, 2009 Members Share Posted May 22, 2009 While i agree on the above, i did a bit of simple computation: 3500/90 = 38 Months 4500/120 = 38 Months 4700/150 = 31 Months Total = 107 Months = 8.9 years :poke: Fail. It would take too much effort to explain why, but no part of this is correct. Link to comment Share on other sites More sharing options...
Members Shiny_Surface Posted May 22, 2009 Members Share Posted May 22, 2009 or........ retain a reputable bankruptcy attorney. $1600 file for no asset chapter 7. $299 90 days later, no debt, except student loan. 2 years later, with proper technique, a credit score of 650 to 700. (credit scores are overrated/over hyped) Waiting for Ron Burgundy to comment... Link to comment Share on other sites More sharing options...
Members mhenson42 Posted May 22, 2009 Members Share Posted May 22, 2009 Geez, lots of advice failure and I only read the first page. I am a CPA. This advice is free....The only appropriate course of action is to pay off the cards that have the highest interest rate first. Total debt is $17,700. I assume that you are able to make the current minium monthly payments on all your cards at the current debt level. Assume it has an average interest rate of 19.5%. Assume that paying down $5,000 on the highest rate will result in total debt of $12,700 with an average interest rate of 15.0%. If you don't take this course of action, no matter what cards you pay down you will still have total debt of $12,700, however, your average interst rate will be more than 15.0%. Which would you rather have? Link to comment Share on other sites More sharing options...
Members Ron Burgandy Posted May 22, 2009 Members Share Posted May 22, 2009 or........ retain a reputable bankruptcy attorney. $1600 file for no asset chapter 7. $299 90 days later, no debt, except student loan. 2 years later, with proper technique, a credit score of 650 to 700. (credit scores are overrated/over hyped) 650 credit score with a glaring public record on it, is not a good thing to have these days. He's got the money to cover the payments, and now he has $5000 in addition to that. Why should he tank everything, and further contribute to the problems our economy is facing? Bankruptcy is a last resort option, and should not be used carelessly just to wipe out a bit of debt that he is having no trouble carrying. Link to comment Share on other sites More sharing options...
Members mhenson42 Posted May 22, 2009 Members Share Posted May 22, 2009 650 credit score with a glaring public record on it, is not a good thing to have these days. He's got the money to cover the payments, and now he has $5000 in addition to that. Why should he tank everything, and further contribute to the problems our economy is facing? Bankruptcy is a last resort option, and should not be used carelessly just to wipe out a bit of debt that he is having no trouble carrying. Why should he have to pay for it though? The Government owes him something. Link to comment Share on other sites More sharing options...
Members thefyn Posted May 22, 2009 Members Share Posted May 22, 2009 Apply for a credit card that offers 0% for a year on balance transfers. (limit may be an issue) Get your total balance, divide it by 12 and make sure you make each payment on time. One year later you are out of debt: Important: Life and luxury should be waaaay behind you because you need to be free and clear Clearasil style. Link to comment Share on other sites More sharing options...
Members Shiny_Surface Posted May 22, 2009 Members Share Posted May 22, 2009 Why should he have to pay for it though? The Government owes him something. But he could buy a Diezel and Mills cab with the debt wiped off and join your group, so it would be a win for HCAF. Link to comment Share on other sites More sharing options...
Members isvoid Posted May 22, 2009 Members Share Posted May 22, 2009 or........ retain a reputable bankruptcy attorney. $1600 file for no asset chapter 7. $299 90 days later, no debt, except student loan. 2 years later, with proper technique, a credit score of 650 to 700. (credit scores are overrated/over hyped) Not sure if you're saying this in jest, but this modus operandi is at the heart of our financial woes. Link to comment Share on other sites More sharing options...
Members PlayboyChris Posted May 22, 2009 Members Share Posted May 22, 2009 Not sure if you're saying this in jest, but this modus operandi is at the heart of our financial woes. +1. Link to comment Share on other sites More sharing options...
Members mhenson42 Posted May 22, 2009 Members Share Posted May 22, 2009 But he could buy a Diezel and Mills cab with the debt wiped off and join your group, so it would be a win for HCAF. Then by all means.....bankruptcy FTW. Link to comment Share on other sites More sharing options...
Members venivici Posted May 22, 2009 Members Share Posted May 22, 2009 As one who works in finance, this is what I would suggest. Start by paying the smallest balances first, Then allocate what you would have paid towards those cards towards the next smallest balance. This is called the debt snowball. Debt Snowball Plan The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted. First accumulate $1,000 cash as an emergency fund. Then begin intensely getting rid of all debt (except the house) using my debt snowball plan. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan. It a) provides a systematic approach to debt elimination b) helps provide a sense of accomplishment each time you pay off a debt obligation. c) helps to maintain consistency in a plan on how to plan paying off debt using what you normally pay each month I am no expert, but i have seen it work well dozens of times. Below is a general financial game plan to approach as well - food for thought. General Game Plan 1. $1,000 to start an Emergency Fund 2 Pay off all debt using the Debt Snowball 3. 3 to 6 months of expenses in savings 4. Ivnest 15% of household income into Roth IRAs and pre-tax retirement 5. College funding for children 6. Pay off home early 7. Build wealth and give! Invest in mutual funds and real estate Link to comment Share on other sites More sharing options...
Members Bob Savage Posted May 22, 2009 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 You shouldn't even be thinking about gear until all of that credit card debt is paid. Link to comment Share on other sites More sharing options...
Members Bob Savage Posted May 22, 2009 Members Share Posted May 22, 2009 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. Strange, I've had only one Visa for many years, pay it off every month (often throughout the month, it's used only for convenience of payment), and have a credit rating around 790.I'm not really sure exactly what you're suggesting, but floating debt on credit cards is a poor approach for increasing your credit rating. Link to comment Share on other sites More sharing options...
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