Don't know what to do...

iVillage Member
Registered: 10-14-2005
Don't know what to do...
4
Sun, 12-04-2005 - 7:26pm
I received an offer for 0% 12 months/12.99%. Right now no thanks to my dh most of the cc's are with an APR of 22/27/28%. I was approved but not for the amount I was hoping maybe because I didn't include dh income. So I will focus on paying off the cc w/0%.
I also received another offer with a APR of 7.99 Plantium or 13.99 for preferred again lower than what I have, this time I will include total income and maybe be able to transfer more. I'm proud....I have charged NOTHING in several months!
My confusion: I received a check from my credit union for $3000.00 APR is 9%. This is a "holiday check".... I have not done any christmas shopping, paid ALL my bills this month which includes car registration and smog. I'm left just with enough for groceries. I'm considering depositing this "holiday check". My plan is to at least payoff 1 or 2 cc's, use some for gifts and put some aside.
I just don't know what to pay off:
Gas card #1 = 1,113 payment = 112.00 Apr. 21
Gas card #2 = 767 = 25.00 Apr 21
Ccredit = 1,325 = 40.00 Apr 22
Ccredit = 1,928 = 60.00 Apr 27
I'm just frustrated, trying to figure out what will work best and what to pay. I don't want to get into further debt. Any thoughts???
iVillage Member
Registered: 08-19-2003
Sun, 12-04-2005 - 7:31pm

DO NOT USE THE CHECK FOR GIFTS!!! That is just opening a bag of worms. Go ahead and use it to pay off a higher rate debt. But for gifts, budget an amount you can afford and stick with it.

Shannon


Pregnancy%20ticker
iVillage Member
Registered: 03-27-2003
Sun, 12-04-2005 - 8:24pm

What is the monthly payment on the Christmas check from the credit union? I would call and check so you make sure whatever you pay off has a minimum that will cover the new minimum you're paying to the credit union. I think there are 2 schools of thought-1 that says go with smallest bill and pay it off and another which says go by interest rate. I'm willing to work and wait for the balances to be paid off so I go by highest interest rate which in this case is the CC for 1,928. BUT, if the payment on the Christmas check will be more than 60.00 each month I would go for the one with 1,113 that has a payment of 112.00. In terms of the Christmas gifts, if I'm reading your post correctly absent using this check there are no Christmas gifts right? So, in using some of the money for gifts just keep reminding yourself that you are essentially putting those gifts on a credit card. Set a strict budget for yourself and stick to that!

Taleyna

iVillage Member
Registered: 10-14-2005
Sun, 12-04-2005 - 9:24pm
The payments would be $97.00. I just want to make the best use out of this check. BINGO!!! no presents without this check. Everytime, I put money aside something else comes up. I do have my ER fund but not much in there.
iVillage Member
Registered: 12-12-2004
Mon, 12-05-2005 - 12:33am
Hi, JB. Well, I agree with Taylena and all--dont spend it on gifts. Set the budget and pare down the bills. Can you still have a nice holiday? Yes. I am baking this year. I just dont have the $$$ for all the gift cards I want to get. DH got a mixer for me for Christmas. So, I'd better use it. Plus, homemade gifts are fun to get, and not all that expensive. Can you shop after the holiday sales? Something inexpensive, but you might find bargains. For the one Christmas party, each person is spending $20.00. That includes entertainment, food, etc., and we're all bring something to eat (main dish, etc). We are not having a gift exchange, as some folks work P.T., and cant spend a lot of $$$. Whiz.