Help me make a plan to pay down CC debt

[marylou]

Okay. So we're finally in a place where we have a little bit of money left over at the end of each month. SLs were approved for a 3 month forbearance, and my brother moved in and is paying some rent. So all in all, we have about $500 each month to put toward the CC debt we racked up during our move in April.

We're planning on snowballing, but one of my CCs (CC2 in the info below) recently raised my limit. It has the lowest interest rate out of our 3 cards, so I'm wondering if I should transfer some of the balance from one to this one, or if I should just not mess with it. Here are the stats:

CC1: $4,300 @ 11.24% (maxed out)
CC2: $1,937 @ 9.9% ($892 transfer limit, same APR)
CC3: $1,314 @ 16% (maxed out)

CC1 and CC2 are mine and CC3 is DH's, if that matters.

The numbers are hurting my head, and dealing with such high balances for the last few months has been SO stressful. I want these gone ASAP. Please help me make a plan. My brain is too fried to make sense of it all on my own.

[panicked]

Make minimum payments on 2 and 3. Pay as much as you possibly can on 1. Once you get that paid off, pay minimum on 3 and pay as much as you can on 2 until it's paid off. Then you'll just have the one.

[zacksbride]

Sept 17, 2012 20:03:36 GMT -5 marylou said:

Okay.
CC1: $4,300 @ 11.24% (maxed out)
CC2: $1,937 @ 9.9% ($892 transfer limit, same APR)
CC3: $1,314 @ 16% (maxed out)

.

I would not do a balance transfer, if it is going to be at the same 9.9% APR - that combined with a balance transfer fee, may not save you that much money.

IMO, i would pay minimums on CC 1 and 2 and throw the remaining amount to CC 3 for 3-4 months to pay that off.

After that, I would pay the minimum on CC2, and throw the rest of the $500 to CC1 until paid off.

Then, put all $500/month to CC2

[fuddyduddy]

I agree with the snowballing plan panicked mentioned, but I would prioritize them in order of interest rate. Focus on #3, followed by #1, then #2.

[panicked]

Reading fail on my part- I read cc3 as 6%, not 16%. Pay that one off first.

[jena]

So of your extra $500, how much is bro's rent and how much is forbearance... Or put another way, after 3mo, now much extra will you have?

If your extra will drop considerably, it will make more sense to use a balance transfer on that 16% card, pay off remainder of that card, and then focus on 11% card. If your extra won't drop that much after forbearance ends, then just pay off 16% card without messing with the balance transfer.

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[Roc A Bee]

Focus on 3 bc of highest interest plus it is the smallest balance which will feel good to pay off.

[marylou]

Sept 17, 2012 20:15:55 GMT -5 jena said:

So of your extra $500, how much is bro's rent and how much is forbearance... Or put another way, after 3mo, now much extra will you have?

If your extra will drop considerably, it will make more sense to use a balance transfer on that 16% card, pay off remainder of that card, and then focus on 11% card. If your extra won't drop that much after forbearance ends, then just pay off 16% card without messing with the balance transfer.

Sent from my HTCEVOV4G using proboards

SLs are $125/mo. Bro's rent is $300.

Sounds like I should not do the transfer, and just focus on snowballing. Thanks everybody!

ETA: I know that doesn't add up to $500. I'll be getting a few extra hours as we go into the holiday season that I'm estimating to bring in a little extra each month.

[ladyk]

Is bro also pitching in for utilities? One more person will increase the power, water, food so be prepared for that.

I'd throw as much to number 3, then 1, then 2.

[marylou]

We figured the A/C going down would even out with his utilities, at least for the first few months.

[whitepicketfence]

Sept 17, 2012 20:09:40 GMT -5 fuddyduddy said:

I agree with the snowballing plan panicked mentioned, but I would prioritize them in order of interest rate. Focus on #3, followed by #1, then #2.

This is what I would do, too.