Should I pay off my credit card balance in full?

For just about anything you want to get off your chest about credit cards.
2 posts
Posts: 1
Joined: Wed Oct 20, 2010 4:23 pm
Location: Campbell

Should I pay off my credit card balance in full?

Postby thatguy » Wed Oct 20, 2010 4:37 pm

I did a short sale recently, which is obviously affecting my credit.
I have roughly $25k in CC debt, but have ~$20k to use towards. Should I a) pay off the highest APR credit card balance first and work my way 'til I run out of $ or b) pay down 90% on each, leaving a balance on each.

It seems that every couple of months, my CCs decide to lower my credit limit due to my "debt to credit limit ratio" being too high. (Which doesn't make sense is a) I've never been late on a payment, or b) by them lowering the limit each month, my ratio increases accordingly...go figure!)


User avatar
Mogul of Pineapples
Centurion Member
Centurion Member
Posts: 1271
Joined: Sun Jun 01, 2008 11:32 pm
Location: Smogland

Postby Mogul of Pineapples » Wed Oct 20, 2010 7:41 pm

Using $25k our of $45k of available credit is a utilization rate of nearly 56%. Anything above 25% to 30% can be considered to be high so I would say your debt to credit limit ratio is too high.

What is your income like? Realistically, do you think you will be able to pay down the $25k?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 3 guests