Some credit card help, please

iVillage Member
Registered: 03-16-2004
Some credit card help, please
9
Fri, 05-09-2008 - 1:42pm


 

Lilypie First Birthday tickers

Community Leader
Registered: 07-26-1999
Fri, 05-09-2008 - 2:34pm

Personally, and someone might come along with a better idea, but I would pay around $400 of the savings onto Card 2, then transfer the rest of that balance to Card #1 with the 2.99%, that way you have a little cushion room on Card #1 and I'm sure you will have to pay a transfer fee of some sort, and then put any other money from the savings and the IRS stimulus money onto Card #3 since it has such a high interest rate.

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iVillage Member
Registered: 01-25-2006
Fri, 05-09-2008 - 5:05pm

I have a question...will that $1800 from savings empty your savings account? I wouldn't do that if it will. If it's other funds, here are my thoughts:

1. I would be really, really nervous being that close to the limit on card #3. I would definitely apply at least $500 or so to that to buy you some breathing room.

2. I don't who holds Card #2 but if you think it is a company likely to extend an offer for lower interest rates I might go ahead and apply the remainder there. Pay it off and then see if they will increase your limit in exchange for transferring some or all of #3.

3. If you still have a balance on card 3 when you are done paying/shuffling, I'd call and see if they can offer you a better rate.

Good luck! Let us know what you decide!

Peg

iVillage Member
Registered: 11-17-2007
Fri, 05-09-2008 - 5:16pm

Hello


One thing you never said is how these cards are figuring your payments

iVillage Member
Registered: 03-16-2004
Fri, 05-09-2008 - 6:14pm

Thanks for the suggestion Tracy. I might just do that. I didnt think of that combo.


Thanks again.

Caroline TTC#1



No BC since 7.04, TTC off and on since 1.2007








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Lilypie First Birthday tickers

iVillage Member
Registered: 03-16-2004
Fri, 05-09-2008 - 6:21pm
 

Lilypie First Birthday tickers

iVillage Member
Registered: 03-16-2004
Mon, 05-12-2008 - 2:32pm

Thanks Mary Ann for the suggestions. I have alot to think about. I am hesitant to open another card for a few reasons 1.) is being decline (I know its not a big deal but I still dont like it and 2.) I did the same thing before, which is why I have Card #1, and I dont want to put myself in a position to increase my changes. I will think about it though.


 

Lilypie First Birthday tickers

iVillage Member
Registered: 10-06-2007
Tue, 05-20-2008 - 12:41pm

Well if it were me, I would use the $1800 towards Card #2. I would also use the economic stimulus check towards that, so it is cleared out. Depending on who the carrier is, if you pay it off entirely, it's quite common for them to send you a balance transfer offer, which you could use to transfer Card #3 to Card #2 at a lower interest rate. Then snowball the minimum payments towards the higher interest balances.


This will serve a couple of purposes. I think it is nice to have a quick hit to pay off one of the balances. It feels good emotionally and can be motivating. Second it does free up a good amount of money for a monthly payment to snowball.


You can't pay down debt with more debt, so I don't think it would be beneficial for you to apply for additional cards and it could definitely be detrimental. Most humans have a very nasty habit of expanding our spending to fit the credit available (and that's how we end up in this debt mess).


Marie


iVillage Member
Registered: 07-26-1999
Tue, 05-20-2008 - 1:38pm

I was typing out one idea, which started to not make much sense, hopefully I've thought this through...

I would take the $1,800 from savings and put it to card #2. When the stimulus check comes, I would pay off card #2 entirely and close it.

You've said that you have an e-fund that you fund monthly and you've said that you are going to make more than the minimum on card #3, otherwise I would suggest paying down card # 3 a bit first. Some people argue that closing a long-standing account hurts your credit; when you close a card, ask them to note in the file that you requested the file closed. This way it doesn't reflect that they closed it because you are a bad credit risk. This is what I have done. I feel that paid off but still open accounts are a recipe to fall right back into debt, no matter how good your intentions are.

I would guess that you would have about $300-$400 of stimulus check left over after paying off card #2, and I would put that towards card #3.

Then I would continue to pay the minimums on card #1 and put every penny I have toward card #3 (including the average amount of the minimum payment that was due on card #2) until it is paid off.

I was originally going to suggest that you put the $4000 from your savings and stimulus check to card #1 and then do a balance transfer from card #3 to card #1 at the lower interest rate. That still leaves you with a pile of high interest debt on card #2, so that is why I have suggested paying card #2 off entirely with the money you have/will get. In this case, since you don't have enough room to really drastically lower the balance of card #3 with the balance transfer, I would just forget about it for now.

iVillage Member
Registered: 03-16-2004
Thu, 05-22-2008 - 1:08pm

Thank you for your suggestions Marie. I appreicate you taking the time to read my post and respond. I afgree about not getting the additional cards, I did that before and I dont want to do it again. I have all the cards I need, I might down the road get a mastercard (because all mine are visa's) but not at this point.


 

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