- Centurion Member
- Posts: 237
- Joined: Wed Feb 18, 2015 9:04 pm
- Location: Texas
I'm going to be a lot more optimistic about this. I don't think this is bad at all. The math absolutely works out to you being able to pay all of this off without paying any interest. I would recommend against doing a balance transfer because there's no reason to pay transfer fees when you can easily handle this just by being diligent and organized.
Here's a little payment plan I put together to make sure you won't incur interest:
Months left at 0%: 10
Payment per month to avoid interest: $68.56
Months left at 0%: 12
Payment per month to avoid interest: $34.48
Amazon Prime Store Card
Balance 1: $25.74
Months left at 0%: Pay off in first month
Balance 2: $804.18
Months left at 0%: 9 (lost 1 month to Bal 1)
Payment per month to avoid interest: $89.36
*Pay off now
Your first month you'll need to pay $176.36 and that will eliminate the AMEX balance and the 1st Amazon balance. From there you'll need to pay $192.40 each month until the balances are gone, which isn't too bad since it's only about 1/3rd of your discretionary income and if you do that you'll avoid any interest charges.
Note I didn't include this month, September as a month in the payment plan, to ensure that you definitely had it finished in time in case you've already had a Sept. payment or in case the 0% APR expires early in the month listed.
What you need to do primarily is make a pact with yourself to not add even another dime to any card balance that you won't immediately pay off in full plus the minimum amount shown above. So for example if you spend another $145.28 on the Chase Freedom, just as regular spending, then the absolute MINIMUM you should pay them is $179.76 ($145.28 new + $34.48 regular). Track it carefully and make sure you keep on target. Of course you may be able to - and should if possible - pay everything off early, just make sure the absolute minimum you do is the regular monthly amounts suggested above to avoid interest plus any new charges.
If you think you might tempted to let a new charge ride, then I absolutely agree with KDM that you should just use a debit card instead to not even give yourself that option.
Don't worry about utilization too much right now, just focus on steadily reducing the utilization across ALL cards and avoiding fees and interests. Utilization is just a temporary, month-to-month factor in your credit score anyway, and I strongly discourage you from even considering opening more credit or asking for a CLI until everything is paid off. If you really want to do that...GOOD, use that as motivation to pay off faster.