Should I pay off my credit card balance in full?

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thatguy
 
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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!)

Thanks


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Mogul of Pineapples
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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?
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