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| Debt Anything to do with debt including debt reduction, debt concerns, debt consolidation and how to get out of debt |
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08-28-2009, 01:15 PM
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My plan to be debt free
This is my current debt, in the order I want to pay them off, I am doing it by balance
Amex Balance: $542 Interest: 27.24% Available balance: $1600 Monthly interest fees: $15 Annual Fee: None Monhtly minimum: $15 Visa Balance: $2800 Interest: 12.99% Available balance: $4200 Monthly interest fees: $31 Annual Fee: None Monthly minimum: $50 Personal, non revolving loan Balance: $5890 Interest: 16.45% Monthly payment 360, out of which 85 is interest, 275 goes to principal Monthly interest fees: 85 Car loan Balance: $9410 Interest: 5.95% Monthly payment 297, out of which 49 is interest, 248 goes to principal Monthly interest fees: 49 ---> corrected Paid for accounts Care Credit $5000 available credit @ 23% (only for health services) Annual Fee: None Master card $1000 available credit @ 24% Annual Fee:19 I think that is the correct sequence for paying them off. Now, which cards would you keep after all is said and done. I think I will cancel the Master card since it was an annual fee What do you think? Last edited by Radiance : 09-04-2009 at 08:00 AM. Reason: Car loan fees were wrong 
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08-28-2009, 04:12 PM
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I would not use any of them until they are all paid off. If you cannot use one of them without paying in full each month, you should put them in the drawer or even cut them up.
Yes, get rid of the MC. The rest can sit idle or close them as you wish. I have two idle cards and one I use and PIF. My credit score is fine just doing what I feel comfortable doing.
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09-03-2009, 07:58 PM
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Once you either pay off the AMEX or when you have enough available credit on your Visa, I would think about paying off your personal, non-revolving loan with your Visa at 12.99% so that you reduce your interest payments. It would probably also reduce your overall minimum monthly payments so more could go to principle.
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09-03-2009, 08:21 PM
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Why the Visa before the personal loan? I'd do highest interest first.
Does the MC annual fee get you anything? Any perks? If not, cancel it.
__________________
Steve * Despite the high cost of living, it remains very popular. * Why should I pay for my daughter's education when she already knows everything? * There are no shortcuts to anywhere worth going.
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09-03-2009, 11:18 PM
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09-04-2009, 07:55 AM
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Steve,
I think I want to do the Visa first because of the psicological effect of having less accounts sooner. Also milestone wise I will be able to say "I am credit card debt free" sooner. Gosh, I know it sounds silly, but I think it will make the ride more enjoyable. Do you think that is an expensive approach? MC is going away, no perks and I just recall their customer services sucks. cptacek, good catch. my mistake, fees for the car loan is 49 and decreasing each month.
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09-04-2009, 07:59 AM
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The minimum on the Amex is $15
The minimum on the Visa is $50 Loan payment $360 Car payment $297 Quote:
(I did confirm I have no pre pay penalty on any of my debt)
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09-05-2009, 12:41 AM
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You've come a long way already! Good luck with your debt-free journey, it seems that with everything laid out you'll be out of debt in no time!
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09-05-2009, 07:14 AM
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__________________
Steve * Despite the high cost of living, it remains very popular. * Why should I pay for my daughter's education when she already knows everything? * There are no shortcuts to anywhere worth going.
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10-19-2009, 02:53 PM
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An update
Just called Master Card to close up because they have an annual fee. The rep was in shock that was the reason I was closing... it felt good.
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10-19-2009, 07:31 PM
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Radiance, it sounds as if you are rocking along on your plan!
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10-23-2009, 11:42 PM
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10-28-2009, 11:06 AM
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Another update, Amex is paid off!
Three more to go! This is my current debt, in the order I want to pay them off, I am doing it by balance Visa Balance: $2800 Interest: 12.99% Available balance: $4200 Monthly interest fees: $31 Annual Fee: None Monthly minimum: $50 Personal, non revolving loan Balance: $5336 Interest: 16.45% Monthly payment 360, out of which 85 is interest, 275 goes to principal Monthly interest fees: 85 Car loan Balance: $8915 Interest: 5.95% Monthly payment 297, out of which 49 is interest, 248 goes to principal Monthly interest fees: 49 Paid for accounts Care Credit $5000 available credit @ 23% (only for health services) Annual Fee: None Amex Available balance: $2000 available credit @ 27.24%  Annual Fee: None Those interests are ridiculous, keeping for now in case of a world crisis emergency or something. When my credit recovers I plan to get better ones to replace those. More recently, my debit card pays rewards, so I am even less motivated to ever use credit cards, even if it is to pay in full monthly. They will become a piece of plastic using space in some drawer. no?
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10-28-2009, 12:28 PM
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I have no idea what the rates are on my credit cards and I use a CC almost daily for something. We charged over $40,000 to our cards last year but every bill was paid in full each month so I couldn't care less what the interest rate is. It could be 300% and it wouldn't bother me a bit.
__________________
Steve * Despite the high cost of living, it remains very popular. * Why should I pay for my daughter's education when she already knows everything? * There are no shortcuts to anywhere worth going.
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10-28-2009, 12:57 PM
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10-28-2009, 12:59 PM
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I think that until I have a decent EF, life can come with a curve ball and force me to use credit, so it would be nice to have fast access to low or decent interest money. Mainly thinking about medical emergencies, nothing else comes to mind.
Well, you never now, let;s say you need to bail an innocent family member from jail. Or maybe someone sue you and need to pay lawyers. I'd better stop or I will scare myself. The point is, until I have a decent EF, I would like to have low interest credit available, makes sense?
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10-29-2009, 07:35 PM
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2011, that is right around the corner, so exciting! You go!
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11-01-2009, 07:24 PM
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Totally agree:
- Don't use any of the cards anymore - Whittle down the manageable ones first to get them out of the way Also, one note: if I remember correctly, canceling a credit card will NEGATIVELY affect your credit score. Once you're down to $0 debt, you might want to just put the cards in a drawer and never use them.
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11-02-2009, 06:11 AM
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Radiance, I would close the cards in which you owe the balance. I believe they will let you do that and then you would work on paying them off. Then keep the master card as your one and only credit card, no need to have more than one.
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