Of course try to get them to lower the APR....
With or without the APR reduction, I think I would put 1K in the bank to help for an unforseen emergency...and then put the other 8K to the CC. After that, still ping on the CC for 500 a month, and within a few short months it will be gone, then you can free up that 500 towards some of the other debt.
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Use entire bonus to pay down credit card?
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Originally posted by Mike75 View PostI am sorry but this doesn't work every time. My friend tried to use this trick on his bank, but he got a stern NO from everyone he talked. All he go was a headache and a wastage of 2 hours/
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Originally posted by kork13 View PostIf that's the answer you got, you haven't tried hard enough. 29% for just about anybody is ridiculous. Call back, and tell them to reduce it to something more reasonable. If they still insist "no", ask for a supervisor. If they still say "no", ask for a manager. If they still say no, tell them that you will be transferring the balance, and to expect payment in full shortly, after which you will close the card. Often, they will make at least a better offer in order to keep you as a (interest-paying) customer. If they don't give you an adequate offer (I'd aim for 15%-20% at the most), follow through with your threat -- do a balance transfer on the remaining $3k to one of your other cards. In all likelihood, one of them has a standing balance transfer offer that is FAR better than 29% interest.
While you're at it, call ALL of your CC companies, and ask for rate reductions. Just because one card won't cooperate doesn't mean another won't.
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Great plan. Although, and if they don't lower the balance, you only have $1,000 left to pay...the interest will be much less than you are paying now!
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Thanks all for the feedback. I think I'll put the money towards citi, maybe keep $1k. Then call citi and negotiate a lower interest with the threat that was mentioned above. After paying off nearly 2/3 of my debt, they better be more willing to negotiate or I will move it to a lower interest credit card.
I have another card with almost the same balance and slightly lower interest. So the bulk of what I save after paying off citi will likely go there and still try to put some extra in to savings.
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I'd echo the above statements. Paying such high interest is a death spiral.
Thought of another way - this is an investment that pays 29% returns!
Get this monkey off your back and keep it off.
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I would use the 9k to towards this citi credit card especially since you have some other money saved! Nice bonus money
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Originally posted by lottadebt View PostMy savings is pathetic
Or, I could still make the same $500/mo payment towards citi after using the bonus which would pay off the remaining $3k on the card much quicker.
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keep 1K for emergencies and pay the rest of it on your debt
but the above poster has a good point, you should definitely negotiate your interest rates down and ask for "hardship programs and "deferral programs"
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Originally posted by lottadebt View PostI figured by putting the $9k towards the citi card, that would free up some money that could be put towards savings.
Or, I could still make the same $500/mo payment towards citi after using the bonus which would pay off the remaining $3k on the card much quicker.
Originally posted by lottadebt View PostThe worst of the cards is a Citi card with $12k on it at 29%. ....... this credit card debt is killing me and Citi wasn't able to reduce my apr right now.
While you're at it, call ALL of your CC companies, and ask for rate reductions. Just because one card won't cooperate doesn't mean another won't.Last edited by kork13; 02-16-2010, 06:02 PM.
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What are the balances on the cards and what are the interest rates?
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My savings is pathetic, but that's really because after I pay my credit cards, and other bills, there's not much left to put in to savings. I figured by putting the $9k towards the citi card, that would free up some money that could be put towards savings.
Or, I could still make the same $500/mo payment towards citi after using the bonus which would pay off the remaining $3k on the card much quicker.
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Yes, that is what I would do in your situation. I don't know how much you have in savings, but it would still be a good idea to hold on to some of it as an emergency fund.
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Use entire bonus to pay down credit card?
I know I've got a lot of credit card debt and want to get out. I have about $46k in debt on a couple of accounts. I'm able to make the minimum monthly on all of them but that's it, and it doesn't leave much left over.
The worst of the cards is a Citi card with $12k on it at 29%. Minimum payment is about $500, give or take. I just got a bonus of about $9k and could also use some extra money in savings as a safety cushion (esp since I don't have much left over after paying my credit card bills). But this credit card debt is killing me and Citi wasn't able to reduce my apr right now.
So I'm thinking I should just take that $9k and put it all towards the Citi card and significantly reduce my monthly payment, thus freeing up some extra money.
Advice, thoughts? Thanks.Tags: None
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