Need some financial advice.

[Tobolo]

So I fell into the usual college probelm. I have a decent amount of credit card debt. Well decent to me at least. Looking for advice as what to do. See below.

CC#1: Limit $500 - Balance $344.28 - APR 19.80%
CC#2: Limit $5000 - Balance $4,774.97 - APR 32.4%

I also have some student loans but nothing to worry about there. I make about $14k a year and with the CC payments, student loan, and insurance I pay $200 - $400 a month on CC#2. As you can see, it hasn't helped to much.

What should I do? I have thought about trying to get a new CC with an introductory 0% offer for a few months (That will help a ton) but are their any other ideas I should consider?

Any help and/or links to help would be appreciated!

~Tob

 

[pontifex]

are you going to finance a $600 cideo card?


Whoa, you're almost maxed on card 2 and look at that interest rate! holy shite

 

[giantpinkbunnyhead]

32%?!? Holy hell! First thing I'd do is call that creditor and see if you can negotiate a lower rate. You'd be surprised how often that works.

Meanwhile, look for ANY other credit line to transfer that balance to; I don't think you'll find anything even close to that APR.

If you had more debt, there would be more options but with only $5-$6K you're not hurting. Inconvenienced, yes. But not in dire trouble. Get rid of the 32% any way you can.

 

[giantpinkbunnyhead]

Oh yeah... also... how is your credit rating? If you have a 32%... did you miss a bunch of payments somewhere? something bad happen?

 

[psydancerqt]

definitely get rid of the 32% rate.... if you cant get it lowered like giantpinkbunnyhead suggested, be sure to never use that card again!

 

[Tobolo]

I have found the company to be highly obstinate about any dealings that I have had with them. My ideal situation is to be done with that company forever! (Bank of America)

 

[Gunslinger08]

Also see if you can get a personal loan to consolidate this debt at a lower interest rate and possibly for a long term (5 years or so). That should make the payments much more reasonable.

 

[MikeyIs4Dcats]

jsus christ! I've never seen a credit card rate above 24%.....and I thought that was bad enough!!

 

[Krazy4Real]

If your interest rates are that high, I'm guessing you missed a payment or two. I could be wrong, don't take offense. Maybe the best thing you could do is find a card with 0% interest on balance transfers for a year. Transfer the balance of both cards to that one, split the total into 12 equal payments, and make sure that you pay that thing on time every month.

 

[Tobolo]

My credit report shows everything I have in good standing, but obviously balance to limit ration is high. But I checked my credit score about a year ago and it was 640 or 660, in that range. That isn't the best in the world, but I certainly could be a lot worse off.

It also states whether I have been late on the Credit report, and both say I havent

 

[spidey07]

In all honesty at those rates you may never pay them off with just 200-400 dollars a month. Just seeing the amount of interest you're paying should jolt you into action.

1) Make a budget and make sure paying this off in one year is your top priority
2) Move all of that debt to a zero percent card or even take out an installment loan to pay it off.
3) don't buy anything you don't need. not one single thing. paying this off is your top priority for the next year.

 

[xanis]

Sweet Jesus, 32% APR? Ditch that card pronto. You're not up the creek with out a paddle yet. Ditch that card and you should be fine.

 

[kranky]

Call and see if you can get a lower rate first on card 2.
It might be tough to get another card since they will see you are 93% utilized on the two cards you already have. See if card 1 will increase your credit line and then you could move some of the card 2 debt to card 1.

But realistically, you aren't in a good position to bargain. You are charged up near the limit and you have a short credit history. I think the best course of action is to see what you could sell to knock out the debt on card 2.

 

[giantpinkbunnyhead]

Originally posted by: Tobolo
I have found the company to be highly obstinate about any dealings that I have had with them. My ideal situation is to be done with that company forever! (Bank of America)

Yeah, BofA sucks donkey d!cks, but dont let that stop you from at least trying to call them. Maybe even ask for a manager or something. You might actually get a nice human to talk to. But just the same... this is an easy, FREE option you can try first. If they won't yield, at least you ruled it out and you move on.

ANother option... call your other creditor (the $500 one), see if they'll increase your limit and allow a low-rated balance transfer. Sometimes they'll do that if they see they'll earn more interest off of you than they're earning now. (Which they would). I doubt they'll up it by $5K, but if you can get at least $1-$2K away from the 32% card and onto the 20% card, it's a step anyway.

 

[Krazy4Real]

Text

Check this out. This card might be what you need. Others feel free to comment on it. That would make your payment about $426 a month and your credit card debt will be paid off in one year. Make sure to not charge anything else obviously until you're done paying it off.

 

[Tobolo]

Link is dead?

 

[flexy]

CC#2: Limit $5000 - Balance $4,774.97 - APR 32.4%

:Q

jeezzz.....and i thought 21% is already rape...thats an insane APR.....

 

[Tobolo]

Well if you guys see a large fire sale in FS/T feel free to help out.

 

[Krazy4Real]

Text

Try that link. It's the Citi® Dividend Platinum Select® MasterCard®

It does have a 3% balance transfer fee, but it's worth it considering all the interest you won't have to pay.

 

[Nick5324]

How could we forget RossMAN's CC site?

Link

In your case though, rewards and any other "perks" are not important. Dumping that BOA card for something even close to reasonable is the first step.

 

[JS80]

balance transfer to discover card AND DON'T USE IT

 

[IronWing]

In addition to paying down the cards (however you do that) also begin to save up an emergency fund so unexpected expenses don't go on the card. The point is to never use the cards again until the balances are paid and interest stops accruing.

 

[Tobolo]

UPDATE: I applied for the Citi® Dividend Platinum Select® MasterCard®. I was approved for $2k with 0% on balance transfers for 12 months and 18.24% APR normal.

Is this worth doing? What I mean, it's not high enough to pay off the large CC. Should I open a new line of credit?

 

[JS80]

Originally posted by: Tobolo
UPDATE: I applied for the Citi® Dividend Platinum Select® MasterCard®. I was approved for $2k with 0% on balance transfers for 12 months and 18.24% APR normal.

Is this worth doing? What I mean, it's not high enough to pay off the large CC. Should I open a new line of credit?

transfer to the card and don't use it until you pay off all of it.

 

[giantpinkbunnyhead]

Originally posted by: Tobolo
UPDATE: I applied for the Citi® Dividend Platinum Select® MasterCard®. I was approved for $2k with 0% on balance transfers for 12 months and 18.24% APR normal.

Is this worth doing? What I mean, it's not high enough to pay off the large CC. Should I open a new line of credit?

YES. If you get 2K off that large CC; that's 2K that is not racking up 32% interest anymore. If that 2K sits at 0% for 12 months, that'll save you about $600 bucks right there.


edit: in fact, if the approval was online... you could even call the card up and say "Hey I just got approved for $2K but I'm trying to transfer a larger balance, can I be considered for $3K?" or something along those lines.

get what you can!