High amount of debt, do I need to worry?

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vantageman
 
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High amount of debt, do I need to worry?

Postby vantageman » Sun Apr 30, 2017 7:09 pm

High amount of debt, do I need to worry?

I have 7 credit cards with a total of $68,000 in credit limits. I have never missed a payment in 9 years and 3 months, never had a late payment. Before I started taking on debt my score was 810.

I have recently charged $40,000 to my credit cards and rolled the debt into 0% APR balance transfers. I have no other debts, no car notes, no mortgages, no education loans. My scores have now dropped significantly because of the high debt to credit limit ratio.

The reason I decided to take on so much debt was to cover some expenses for my business expansion, this barrowed money is actually going to make me a very nice profit. However considering my debt is approaching 60% of my credit limits I am concerned the banks will get nervous and close my accounts without warning and start demanding payment in full. My plan is to start paying down all this debt in 4-5 months’ time. After 4-5 months I plan to start making $3000-$4000 payments each month to the banks to start reducing the debt.

How concerned do I need to be about the banks getting nervous and closing my accounts without warning and start demanding payment in full.


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kcm7
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Re: High amount of debt, do I need to worry?

Postby kcm7 » Mon May 01, 2017 4:24 pm

Is the debt pretty evenly distributed? I'd be more worried if you are nearly maxed out on a couple cards.

Hard to say if you should be worried because there are so many factors at play, and it's hard to say when an issuer will freak out and close your account. I've got friends and family who are total idiots with their cards and they stay open. But I think your plan of paying off your balances sooner rather than later is a good one.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

TXviking
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Re: High amount of debt, do I need to worry?

Postby TXviking » Tue May 02, 2017 12:15 am

It may raise a red flag with banks, but AA is unlikely as long as you have no other red flags. In particular, I'd be very careful not to incur any late payments with these kinds of balances. Your good history so far make it unlikely that they would do anything more than pay a little closer attention for a while – the primary area where you might run into difficulty is getting approved for new lines of credit or other loans (e.g. mortgage) with utilization this high.



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