Credit Card Pay Off Q's --- Math Involved

[TurboDANDEE]

Any money manager here that can help me solve this? I'm trying to pay at least one of my credit cards by the end of this year, both have 20+% APR.

CC1 - i pay $200 a month (balance $1,200) active w/$150 monthly charges
CC2 - i pay $100 a month (balance $1,700) not active

Whats the best route for me if I have $1000 to distribute for both cards this month and start back to regular payments next month, So by the end of this year, one card will be paid off and the other will have a low balance?

I'm not really good with spread sheets, so if someone is bored and knows the best solution, hook me up. Thanks yo.

[grnlude97]

Any money manager here that can help me solve this? I'm trying to pay at least one of my credit cards by the end of this year, both have 20+% APR.

CC1 - i pay $200 a month (balance $1,200) active w/$150 monthly charges
CC2 - i pay $100 a month (balance $1,700) not active

Whats the best route for me if I have $1000 to distribute for both cards this month and start back to regular payments next month, So by the end of this year, one card will be paid off and the other will have a low balance?

I'm not really good with spread sheets, so if someone is bored and knows the best solution, hook me up. Thanks yo.

If the interest rate and the fees are the same on both cards then it's not going to matter which way you slice it. If they aren't you need to pay down the one with the higher interest rate or fees first. Also, I would call and asked for a lower interest rate on both. You would be surprised what they can do for you if you get a nice rep and a little luck.

Daniel :)

[XAoPillz]

If the interest rate and the fees are the same on both cards then it's not going to matter which way you slice it. If they aren't you need to pay down the one with the higher interest rate or fees first. Also, I would call and asked for a lower interest rate on both. You would be surprised what they can do for you if you get a nice rep and a little luck.

Daniel :)

wrd, the one with the higher interest rate pay off first!

[Vick_]

If the interest rate and the fees are the same on both cards then it's not going to matter which way you slice it. If they aren't you need to pay down the one with the higher interest rate or fees first. Also, I would call and asked for a lower interest rate on both. You would be surprised what they can do for you if you get a nice rep and a little luck.

Daniel :)

wrd!

i just called for one cc i had that was over 20% apr. they lowered it to 11% since i was making huge payments.

[UPRiSiNG]

Come to wamu ill set you up with 0% for 6 months and well do a balance transfer.

[TurboDANDEE]

Come to wamu ill set you up with 0% for 6 months and well do a balance transfer.
word? how much yall charge for balance transfer and how much will the default APR after the 6 month?

[TurboDANDEE]

wrd!

i just called for one cc i had that was over 20% apr. they lowered it to 11% since i was making huge payments.

i tried this just today, shit didnt work even after i told them i would cancel my credit card :thumbsdow

[Vick_]

i tried this just today, shit didnt work even after i told them i would cancel my credit card :thumbsdow

damn i guess he/she was having a bad day...

how about you pay half on both?

[mtran]

Come to wamu ill set you up with 0% for 6 months and well do a balance transfer.

whoa. how about a yr?

[mtran]

i tried this just today, shit didnt work even after i told them i would cancel my credit card :thumbsdow

ive tried resorting to threatening to cancel my acct. whoever said that shit works, is either lying or fcking gangster sounding on the phone.

[TurboDANDEE]

would it be a good idea if i transfer both CC's to a new credit card with 0% apr for 6 months, drop $1,000 for this month's payment and continue dropping $300 monthly?

[RACER X]

payoff the smaller 1 first, it's easier. then use that $ to pay towards the 2nd one.

[nVy_dis]

payoff the smaller 1 first, it's easier. then use that $ to pay towards the 2nd one.

cut $150/monthly charge and pay cash/debit first then payoff.

snow ball effect always works. pay the smallest first, second, so on....interest rate from 10% to 20% doesn't make much of a difference unless your debt are past 5-10K. the amount of money you save is going to be about the same in the end.

[TurboDANDEE]

well its a monthly charge of $150 because its a gas card, that charge will always be there no matter if its coming out of my pocket or CC

[arabretard]

to pay off my cards i make weekly online payments. they usually range from 100-200 depending on how much my check was that particular week. also i would recommend getting(or try to get) a bank of america platinum plus card. it has 0% interest on both balance transfers and purchases for a full year. i just got mine and transferred a balance from a card that had a higher interest rate. the balance was a little over 1,000, and i was only charged about $35 to do the transfer

[Brooklyn]

do you get promo checks with the active creditcard?

If so, I would throw that $1k to the active creditcard, wait on a promo check....use the promo check to pay off the other cc (the one with the higher %)

now you have the high % rate cc paid off and a real low % rate on the active cc.

[xchrisonfiyax]

ive tried resorting to threatening to cancel my acct. whoever said that shit works, is either lying or fcking gangster sounding on the phone.

when i called to lowere my apr the rep kept saying no she cant do it at this time and crap so i insisted to speak to someone in charge of that dept or whatever....she xfered me to someone in that dept and got it lowered asap.

[Dirty3rd]

can i can my apr reduced if i havent paid for a credit card in like 3 months?

[PIYF]

can i can my apr reduced if i havent paid for a credit card in like 3 months?

Yeah sure why not. Pick up the phone and find out.

[TurboDANDEE]

do you get promo checks with the active creditcard?


i've never heard of such thing, so i guess i dont get promo checks

[axio]

would it be a good idea if i transfer both CC's to a new credit card with 0% apr for 6 months, drop $1,000 for this month's payment and continue dropping $300 monthly?First half, yes. The rest I don't get what you are asking.

Always use a 3-tier system to get out of bad debt. Your most current credit hurts/helps you most, so a new card that you are paying off fast and on time is only going to help you. As such, always eliminate your most current debt first, always. Without explaining how a crediting system works, amounts will become meaningless if you are paying something on them.

Basic 3 tier system:
1) Card A: Newest card, probably the one with the lowest interest (hopefully 0% interest for 12 months). Your goal is to always pay off this card first, always. Think of this as a small term loan. If Card A has a limit of 5K, think of it as a 12 month loan where you have to pay about ~420 a month for the next year.
2) Card B: 2nd newest card. Your second priority to pay off.
3) Card C: oldest card. This card is not a priority. Your goal is to move the balance off this card.

Make it work to your advantage: Move balance from Card B into Card A. If there is some left over, move some of Card C's balance onto Card A. Whatever is left over on Card C, move onto Card B. At this point, hopefully you've moved the entire balance off Card C. Dispose of it (cut it up or something), but don't cancel it. All of this forces Card B to report you've paid a balance on it (by moving it to Card A) and forces Card C to report you've paid a balance on it (by moving it to Card A & B) - payments are great on a credit report. Make monthly payment on Card A when it comes in. Pay as much as you can on Card B, move some of the balance onto Card A whenever some of it opens up. Your goal is to eat up as much of the balance on Card B before it moves onto Card A while constantly paying as much as possible on Card A.

I'm not sure if that makes sense, when I'm explaining it to people I usually use a pen and paper to draw it out. If you have any Q's, feel free to shoot me a PM.

[TurboDANDEE]

thanks axio, unfortunately i didnt get approved for the new CC with 0% apr. So, i just dropped $800 to the CC with lowest balance, $200 for the other.

[axio]

thanks axio, unfortunately i didnt get approved for the new CC with 0% apr. So, i just dropped $800 to the CC with lowest balance, $200 for the other.
Try to get approved for any CC with a lower APR. Your main goal is to lower your aggregate APR and to pay the newest credit cards off first.

[TurboDANDEE]

wont it hurt my credit if i try to apply for another CC when i just got turned down?

[axio]

wont it hurt my credit if i try to apply for another CC when i just got turned down?If you do it every few months, yes. But if you apply for credit at multiple places at the same time you won't take the hit as hard. And a point or two doesn't really make a difference.

[TurboDANDEE]

Cool, I guess i'm gonna try to do one at WaMu haha, they have a similar offer as BofA

[Slim ThuG]

DONT USE CC's PERIOD!!!!!!!!!!!! I think racer x will agree with me. dont buy stuff you dont have paper for

[TurboDANDEE]

true that, but sometimes people fall on hard times and need CC to help them out with expenses for emergencies etc.

[NursingStudent2]

Any money manager here that can help me solve this? I'm trying to pay at least one of my credit cards by the end of this year, both have 20+% APR.

CC1 - i pay $200 a month (balance $1,200) active w/$150 monthly charges
CC2 - i pay $100 a month (balance $1,700) not active

Whats the best route for me if I have $1000 to distribute for both cards this month and start back to regular payments next month, So by the end of this year, one card will be paid off and the other will have a low balance?

I'm not really good with spread sheets, so if someone is bored and knows the best solution, hook me up. Thanks yo.

Why do you have a card that charges you $150/ month!!! That's crazy. pay that one off and cancel that thing!!

[TurboDANDEE]

Why do you have a card that charges you $150/ month!!! That's crazy. pay that one off and cancel that thing!!
haha it doesnt charge me $150 a month, i use about $150 a month on it cause its a gas card

[Slim ThuG]

true that, but sometimes people fall on hard times and need CC to help them out with expenses for emergencies etc.

get yourself a CASH emergency fund.

[second2none]

Allocate the gas money out of your paychecks. Stop using your cards. Make minimum on one and pay the most recent card off.