Advice on paying off 10k CC debt

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Bucs55
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Advice on paying off 10k CC debt

Postby Bucs55 » Mon Jan 09, 2017 11:48 pm

I currently have 4 cards (all close to maxed out) I have already stopped using them, my question is now, what's the best way to go about paying these bad boys off. Interest has been eating at me, and I'm currently on disability 800$ a month. I'm willing to commit 500$ of that every month. Any help or suggestions would be appreciated.


Stros05
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Re: Advice on paying off 10k CC debt

Postby Stros05 » Tue Jan 10, 2017 1:52 pm

If you have determined that $500 is your monthly amount available to pay down credit card debt, one strategy would be to pay the minimum on three cards and pay the remainder of the $500 on the highest interst rate card. After that one is paid off, direct those payments to the next highest interest rate card. Keep doing that until all four cards are paid off.

Another thing to consider is transferring the largest balance to a 0% balance transfer card like Chase Slate. You would have to pay a 3% transfer fee, but you would not need to make payments during the introductory period.

yfan
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Re: Advice on paying off 10k CC debt

Postby yfan » Tue Jan 10, 2017 2:25 pm

Bucs55 wrote:I currently have 4 cards (all close to maxed out) I have already stopped using them, my question is now, what's the best way to go about paying these bad boys off. Interest has been eating at me, and I'm currently on disability 800$ a month. I'm willing to commit 500$ of that every month. Any help or suggestions would be appreciated.

What's the minimum payment on each card? I think Stros05 gave you the best advice on which order to target the cards in. Another option, other than a balance transfer is getting a personal loan that covers some or all of that $10K. Personal loans tend to have much lower interest rates than credit cards if your credit is decent.

Bucs55
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Re: Advice on paying off 10k CC debt

Postby Bucs55 » Tue Jan 10, 2017 6:57 pm

Stros05 wrote:If you have determined that $500 is your monthly amount available to pay down credit card debt, one strategy would be to pay the minimum on three cards and pay the remainder of the $500 on the highest interst rate card. After that one is paid off, direct those payments to the next highest interest rate card. Keep doing that until all four cards are paid off.

Another thing to consider is transferring the largest balance to a 0% balance transfer card like Chase Slate. You would have to pay a 3% transfer fee, but you would not need to make payments during the introductory period.


9 year credit history no late payments no recent inquiries, 670+ score. Given that I'm paying 30$ on Amex card, 60$ on Cap venture and 50$ Citi. My other card is manageable.

Tubpbs
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Re: Advice on paying off 10k CC debt

Postby Tubpbs » Tue Jan 10, 2017 9:01 pm

yfan wrote:
Bucs55 wrote:I currently have 4 cards (all close to maxed out) I have already stopped using them, my question is now, what's the best way to go about paying these bad boys off. Interest has been eating at me, and I'm currently on disability 800$ a month. I'm willing to commit 500$ of that every month. Any help or suggestions would be appreciated.

What's the minimum payment on each card? I think Stros05 gave you the best advice on which order to target the cards in. Another option, other than a balance transfer is getting a personal loan that covers some or all of that $10K. Personal loans tend to have much lower interest rates than credit cards if your credit is decent.


OP said cards are all maxed so new line is unlikely but still possible.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

Kevin86475391
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Re: Advice on paying off 10k CC debt

Postby Kevin86475391 » Wed Jan 11, 2017 1:44 am

Hmm, I don't want to be a big wet blanket here, but if you make $800 a month, that's $9,600 a year, and you said you owe 10K. Credit card debt exceeding your annual income is a big red flag that it may be time to consider bankruptcy. I'm not saying you should declare bankruptcy, but it may be worth at least exploring the option and/or consulting a bankruptcy attorney.

On the other hand, you said you have a 9 year history with no late payments - outstanding considering your circumstances! Way to go!! :lift: You also still have a solid credit score considering your debt load and your posts seem optimistic, so perhaps I'm just catastrophizing and this is absolutely manageable for you.

My other concern is your budget/cash flow. Obviously I don't know your situation, but living on only $300 a month for all other bills, food, and essentials just seems untenable to me. Again, maybe I'm just being negative though and of course you know your situation best.

Is there any possibility you'll be able to increase your income? As far as pay-off strategies go, the advice given above is very solid, but I'd definitely look for ways to earn more money if at all possible in this situation.

Bucs55
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Re: Advice on paying off 10k CC debt

Postby Bucs55 » Wed Jan 11, 2017 3:40 am

Kevin86475391 wrote:Hmm, I don't want to be a big wet blanket here, but if you make $800 a month, that's $9,600 a year, and you said you owe 10K. Credit card debt exceeding your annual income is a big red flag that it may be time to consider bankruptcy. I'm not saying you should declare bankruptcy, but it may be worth at least exploring the option and/or consulting a bankruptcy attorney.

On the other hand, you said you have a 9 year history with no late payments - outstanding considering your circumstances! Way to go!! :lift: You also still have a solid credit score considering your debt load and your posts seem optimistic, so perhaps I'm just catastrophizing and this is absolutely manageable for you.

My other concern is your budget/cash flow. Obviously I don't know your situation, but living on only $300 a month for all other bills, food, and essentials just seems untenable to me. Again, maybe I'm just being negative though and of course you know your situation best.

Is there any possibility you'll be able to increase your income? As far as pay-off strategies go, the advice given above is very solid, but I'd definitely look for ways to earn more money if at all possible in this situation.


I'm single not married no kids etc. Currently staying with my parents do to my injuries. They are helping me out with living essentials while I get back on my feet. I can earn a extra 400$ a week... So bills etc are excluded for now. Minimum payment on my venture is 100$ on my Amex it's 50$ and my Citi is 60$

Bucs55
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Re: Advice on paying off 10k CC debt

Postby Bucs55 » Fri Feb 03, 2017 7:44 pm

I decided to go the loan route, now who do you guys recommend I go to?

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PhillyPhoto
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Re: Advice on paying off 10k CC debt

Postby PhillyPhoto » Mon Feb 06, 2017 8:59 am

Bucs55 wrote:I decided to go the loan route, now who do you guys recommend I go to?

I like local credit unions. They're not profit makers, so they look at what's in you interest too (no pun intended). One that I have just deducts the loan payment from my savings account with them, so make sure to double check their payment policy and get your disability direct deposited if possible, so you don't even have to think about your payments, other then logging in occasionally to make sure they're going through fine.
Main Cards:
Amex: Ameriprise Plat, Surpass
Chase: Hyatt

Sock drawer Cards:
Amex: HHonors
Chase: Amazon Rewards, Freedom
Citi: Macy's Amex, Simplicity, ThankYou
Citizens Bank: Cash Back Plus World
Discover: it
Elan: Bank Rewards
Synchrony: PayPal

755 Eq (12/16)|748 TU (12/16)|726 Ex (1/17)

Bucs55
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Re: Advice on paying off 10k CC debt

Postby Bucs55 » Wed May 10, 2017 6:57 am

Update guys, I was able to pay down my debt using the snowball method which was suggested on here. I've got it down to 4K and looking forward to pay the rest off. Thank you guys very much.



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