2nd Update in comments: Credit card debt advice

[livinitup]

Do you have any fixed expenses you can eliminate or knock down? You probably already combed through these but anything you are paying that you can live without for 6 months?

And well done to you for tackling this. You have given yourself some good spend down options. I hope 2024 is better than the last 2 years.

[sadlebred]

Apr 5, 2024 22:41:52 GMT -5 livinitup said:

Do you have any fixed expenses you can eliminate or knock down? You probably already combed through these but anything you are paying that you can live without for 6 months?

And well done to you for tackling this. You have given yourself some good spend down options. I hope 2024 is better than the last 2 years.

MM is always ready to help with a budget! We have some really knowledgeable folks!

[statgirl]

I would get rid of the monthly fee one first. At $8, with such a low balance, it has an effective interest rate of over 27% just from the fee. Then, I would close it. That fee needs to go!

I would then knock out 5.

And get to the high interest rate one. 5% of its balance is under $50 so it is costing you approximately $50 extra per year by delaying it after the others (and actually less as you pay minimums and the balance goes down).

Then the high balance.

All of this is negotiable in my mind except the fee card.

[georgeglass]

Agree with statgirl - get rid of the one with the monthly fee first!

[skipper]

Apr 5, 2024 12:09:05 GMT -5 quesyrah said:

Apr 5, 2024 6:25:29 GMT -5 skipper said:

yeah, I hate how certain things affect credit and they are certain quick at dropping it.

I bought a car last year (I was rear-ended and they totaled my car) and went to 1 dealership and got dinged 12 times! I think those are gone now but I haven't pulled my report in quite a while. I have the free experian so I know 1 of my scores and can see increases/decreases and a little activity but not a complete report.

It's so hard to get it to go up. Opening my available credit I'd helping. Slowly! lol

It’s so frustrating because it feels as though you have to always utilize debt to have a good score.

After we paid off all our debt we actually closed the cards. Our scores took a dip, but it wasn’t too bad. After about 5 years we each opened a new card and our scores went up. We rarely use them, but maybe just enough to not tank our credit. Mainly we use them to book airfare and hotels and when we travel.

yeah, I'm going to keep most open. I'm only planning on closing the fee card and using the others for things like gas and paying off.

And I do like having them available as a back up.

[skipper]

Apr 5, 2024 22:41:52 GMT -5 livinitup said:

Do you have any fixed expenses you can eliminate or knock down? You probably already combed through these but anything you are paying that you can live without for 6 months?

And well done to you for tackling this. You have given yourself some good spend down options. I hope 2024 is better than the last 2 years.

thanks. I've combed through all that and there's no more cuts that can be made.

Getting a second job helped a lot. It allows me a bit of wiggle room in my main salary/household budget so I'm ok with just using whatever I make there to pay them down. I technically could put a bit extra but I save a good 20% of those paychecks for fun stuff too.

[skipper]

Apr 5, 2024 23:25:30 GMT -5 sadlebred said:

Apr 5, 2024 22:41:52 GMT -5 livinitup said:

Do you have any fixed expenses you can eliminate or knock down? You probably already combed through these but anything you are paying that you can live without for 6 months?

And well done to you for tackling this. You have given yourself some good spend down options. I hope 2024 is better than the last 2 years.

MM is always ready to help with a budget! We have some really knowledgeable folks!

thanks.

[dexteroni]

Oh - does card 3 charge the fee even when there’s no balance? Ok then I change my advice to paying that one off first (after 4 of course) and closing it. I don’t think the length of credit is worth paying nearly $100 a year in fees.

[melmel4854]

I am in a similar boat! My CC balances are higher than yours, and I am committed to not using the cards and also doing a monthly check in with sadlebred! We are friends in real life, so I show her my graph that I created at the end of each month. I am snowballing because I know I need the satisfaction of knocking a balance out and then moving on to another card.

Knowing I need to tell her helps me a lot and motivates me. Something to think about if you need motivation

Good luck!

[skipper]

Update:

I paid off card 4 as planned and I decided to call card 3 that has the monthly fee and asked to renegotiate. Card 1 is also with same company. (no fee and same interest rate) so I've been a good customer of there's for a few years.

They originally said no so I politely said, ok, I'll likely pay it off then and cancel next month. He quickly changed his tune and placed me through to an account specialist.

She offered me 6 months with no fee, she credited my last month's fee and said call back in 6 months to see if they can offer me more.

then she saw I had Card 1 and just voluntarily credited that account $69 for no reason.

woohoo!

[rosiebear]

Great update!

[sparkythelawyer]

First, good for you for tackling this! Since you have no fee, if you can knock out 3 in those six months I'd do that, otherwise I'd do 5 first, which then frees up that payment amount to also throw at 3, then 2 then 1. Victories are victories.
''

[livinitup]

skipper Way to go!

And good for you for calling the company. Those MFers are so shady saying no first. THIS IS WHY KAREN ALWAYS ASKS FOR A MANAGER. Seriously, you did it the respectful way (non Karen!)

Thanks for sharing, it’s an excellent reminder for all of us.

[jobae1234]

You’re doing great!

You’re working a second job and that’s going to be really draining and demoralizing. For that reason, I’d do smallest balance to largest, because the psychological boost will matter more for you. You need something to keep ya going!

[shauni27]

I did not common previously, as I have no advice, but find myself in a similar situation (though worse). I have two CCs that we are trying to pay down; one should be paid off this summer, the other has a much higher balance (10K) and I picked up a second job to help pay it down.

Good for you for working through this; it is really hard.

[skipper]

May 2, 2024 12:55:47 GMT -5 livinitup said:

skipper Way to go!

And good for you for calling the company. Those MFers are so shady saying no first. THIS IS WHY KAREN ALWAYS ASKS FOR A MANAGER. Seriously, you did it the respectful way (non Karen!)

Thanks for sharing, it’s an excellent reminder for all of us.

I find this happens a lot. you have to actually cancel (or threaten) to get any help.

I'm always polite though because it's not the person on the phones fault.

My MIL is a karen. she constantly asks for managers and says she'll never shop there again. Which is a lie because it's walmart and she lives at Walmart. haha.

[dexteroni]

Great update! That one phone call saved you a bunch of money and will help you achieve your payoff goals faster. Thats awesome.

Since you have that reprieve from the fee, I’d go back to the 4,5,3,2,1 order that Roc A Bee recommended. And then I’d probably still end up closing that card because I wouldn’t want to have to fight with them every 6 months for another fee waiver. I’d only keep it open if they agree to waive it permanently. Good luck with the rest of your progress!

[lilac05]

Great job! You’re making good progress, and have a plan to keep moving forward!

One thing that might be worth considering…Take a look at the money you’re saving for fun money. How much is that a month? (No answers needed, obviously.) Would it be worth it to you to give up the fun money every other month for now to get to your goal faster? You really don’t have that much to go!

For some people, giving up almost every “extra” while they’re paying off debt is a great motivator. For others, it just makes people miserable, and less likely to stick with the plan. You know yourself and your situation best.

Can’t wait to celebrate with you when it’s all paid of…soon!! Keep it up!

[skipper]

May 2, 2024 13:39:58 GMT -5 lilac05 said:

Great job! You’re making good progress, and have a plan to keep moving forward!

One thing that might be worth considering…Take a look at the money you’re saving for fun money. How much is that a month? (No answers needed, obviously.) Would it be worth it to you to give up the fun money every other month for now to get to your goal faster? You really don’t have that much to go!

For some people, giving up almost every “extra” while they’re paying off debt is a great motivator. For others, it just makes people miserable, and less likely to stick with the plan. You know yourself and your situation best.

Can’t wait to celebrate with you when it’s all paid of…soon!! Keep it up!

It's $15 a week. lol

it's occasional coffee, pizza, kindle book etc.

[lilac05]

.

Can’t wait to celebrate with you when it’s all paid of…soon!! Keep it up![/quote]
It's $15 a week. lol

it's occasional coffee, pizza, kindle book etc. [/quote]
It all adds up! At what you have to go, that $15 could add up quickly! However (and this is important!), it can also go a long way towards enjoying life and getting in new habits so you’re not tempted to overspend to “celebrate” once everything is paid off!

Stuff like this is why financial decisions are so personal! What works best for one is a nightmare for another. (Which is why people like Ramsey, who offer black and white solutions with no nuance, suck.)

[sadlebred]

Great job! Other cards will be paid off before you know it!

[skipper]

Oct 2024 Update:

Well, this has taken a lot longer than anticipated because I had some unexpected and unavoidable expenses.
I am pleased though, that I am down to 2 credit cards - they are both a slightly higher than when I started but overall - I am in a much better financial position.
Card 1 is now $1550
Card 3 is $500

Overall I am down about $1k and working on card 3 to try and get that paid off next.

As a plus, my credit score has increased by 42 pts!

[lilac05]

Keep up the good work! Unexpected expenses when you’re trying to pay down debt suck, but great job not spiraling and throwing in the towel. Keep chipping away at it & you’ll get there!

Don’t forget to call next month to make sure that fee doesn’t come back!

[fernweh]

You’re doing great! Keep it up.

[dexteroni]

You’re doing great! I would transfer the balance of card 3 to card 1 if you can. Then you’ll only have one payment to make, and you won’t have to keep asking card 3 to waive the fee. Keep up the good work!

ETA: Only if card 1 interest rate is the same or lower than card 3, of course. And if you can get a promotional rate, even better.

[skipper]

Oct 3, 2024 14:53:12 GMT -5 dexteroni said:

You’re doing great! I would transfer the balance of card 3 to card 1 if you can. Then you’ll only have one payment to make, and you won’t have to keep asking card 3 to waive the fee. Keep up the good work!

ETA: Only if card 1 interest rate is the same or lower than card 3, of course. And if you can get a promotional rate, even better.

there's not quite was enough spacebut may e i could call and ask about options. they are actually with the same company and exact APR!

[dexteroni]

Oct 3, 2024 15:44:54 GMT -5 skipper said:

Oct 3, 2024 14:53:12 GMT -5 dexteroni said:

You’re doing great! I would transfer the balance of card 3 to card 1 if you can. Then you’ll only have one payment to make, and you won’t have to keep asking card 3 to waive the fee. Keep up the good work!

ETA: Only if card 1 interest rate is the same or lower than card 3, of course. And if you can get a promotional rate, even better.

there's not quite was enough spacebut may e i could call and ask about options. they are actually with the same company and exact APR!

It’s definitely not a must, just a convenience for you. If a transfer would max out card 1, it may be better to leave things as is. You’re still making good progress with things as they are.

[skipper]

Oct 3, 2024 15:49:29 GMT -5 dexteroni said:

Oct 3, 2024 15:44:54 GMT -5 skipper said:

there's not quite was enough spacebut may e i could call and ask about options. they are actually with the same company and exact APR!

It’s definitely not a must, just a convenience for you. If a transfer would max out card 1, it may be better to leave things as is. You’re still making good progress with things as they are.

I just called, no options but I should have card 3 paid off by December so I'll just cancel at that point.

[heygrey]

Way to go! Sometimes it feels like slow progress in the day to day, but when you look back over months or a year it crazy to see how far you've come.

[Roc A Bee]

Great job!