Credit Card Advice

[JoyJoy]

Some of it was my fault but I also helped out family. They always needed this and that and I was always helping out. Not any more though...they are all grown, they gotta get their own job. I've already stopped helping out so more, cuz it's just hurting my finance's more.



I've gone that route of being a "Good Joe" and it is honorable wanting to help your family out...BUT you have to draw the line. I saw my own credit scores drop when I was extending them money. I had to say NO MORE. I had purposed in my mind also that in many cases it would become a gift and not a loan because I couldn't find them when it was time to pay back, nor did I hear from them as often when there was a date set to repay me my money!! Funny thing, they managed to find the money on their own once I stopped helping! Now it has to be a dire emergency and I do mean DIRE.






Thanks everyone for all the responses. This really helped. I think i'm gonna take disneysteve's approach on this.

Wise approach. Keep in touch and let us know how you're doing.

[Skooby]

If I may, I have a few questions to ask for the forum.

First, I will be 30 years old come this July 5th and my income is approximately $30,000 a year.

My first question is about the FICO score. One of my credit cards online has a section that shows your score, and it said my FICO score was 690. Is this good, bad or average?

If it's not too much trouble I would like to give a breakdown of my five credit cards and my savings and ask for the forum for it's opinion on what to do in order to get the balances down.

Card 1: Credit line: $10,000: $8,955 balance/credit debt - Available Credit: $1,045 - 14.24% APR

Card 2: Credit line: $2,000: $1,732 balance/credit debt - Available Credit: $268 - 29.99% APR

Card 3: Credit line: $8,300: $2,831 balance/credit debt - Available Credit: $5,469 - 10.99% APR

Card 4: Credit line: $5,500: $4,280 balance/credit debt - Available Credit: $1,220 - 17% APR

Card 5: Credit line: $5,700: $880 balance/credit debt - Available Credit: $4,820 - 24% APR

Total Credit Card Debt: $18,678



Here is a breakdown of my assets/savings. TSP stands for Thrift Savings Plan, which is like the governments 401k. I was with the government for four years but I am no longer with them. But I do plan on getting back if I have a chance. I have had the Share Certificate for a few years now, and I originally put $2,000 in to start.

Savings Account - $3,282

Checking Account - $8,779

Share Certificate Account - $2,515 with a 3.640 fix%

TSP Account - $19,965.50 (with 20% taken off a withdrawal - Approx $15,000).

Total Saving/Assets: $30,576

Update:


Card 1: Credit line: $10,000: $4,500 balance/credit debt

Card 2: Credit line: $2,000: $0 balance/credit debt

Card 3: Credit line: $8,300: $0 balance/credit debt

Card 4: Credit line: $5,500: $0 balance/credit debt Credit line now $7,000.

Card 5: Credit line: $5,700: $0 balance/credit debt


Savings Account - $1,000

Checking Account - $1,300

Share Certificate Account - $0

--------------------

Now it's time to build my savings back up after I pay off my last credit card. I kept so much in saving cuz I justed like seeing my money in there. Didn't even think about my credit cards, just always paid the minimum. Kinda stupid now I think back on it. So much money I lost...

[disneysteve]

So did you cash out your TSP? You don't list it under savings anymore.

[JoyJoy]

Wow Skooby look at you!!!!! Good job!

I hope you were able to keep the TSP account.

[aurielle]

Update:


Card 1: Credit line: $10,000: $4,500 balance/credit debt

Card 2: Credit line: $2,000: $0 balance/credit debt

Card 3: Credit line: $8,300: $0 balance/credit debt

Card 4: Credit line: $5,500: $0 balance/credit debt Credit line now $7,000.

Card 5: Credit line: $5,700: $0 balance/credit debt


Savings Account - $1,000

Checking Account - $1,300

Share Certificate Account - $0

--------------------

Now it's time to build my savings back up after I pay off my last credit card. I kept so much in saving cuz I justed like seeing my money in there. Didn't even think about my credit cards, just always paid the minimum. Kinda stupid now I think back on it. So much money I lost...

Good job! Be proud of yourself!

[Skooby]

Thanks all! It does feel good to know that pretty soon I will have ZERO credit card debt!

I did not cash out my TSP, I still have that. It's now up to 20,889.60. But it goes up and down as the stock does. I'm looking to transfer it somewhere else since it seems my days with the government are over. I gotta start back contributing to it. I was thinking about an online bank, somewhere with a fixed rate if that possible. I think online banks usually have better rates...correct? But i've got to figure out which one is best for that.

[ktmarvels]

I'm glad that you didn't cash out your TSP. However from your last post it sounds like you want to put it into an online savings account. THIS IS NOT A GOOD IDEA. You will have to start paying taxes on it. The best option is to roll-over your TSP to a traditional IRA or to a new 401(k). Some online banks also have retirement accounts, but they are separate from their normal savings/checking accounts.

[Skooby]

I'm glad that you didn't cash out your TSP. However from your last post it sounds like you want to put it into an online savings account. THIS IS NOT A GOOD IDEA. You will have to start paying taxes on it. The best option is to roll-over your TSP to a traditional IRA or to a new 401(k). Some online banks also have retirement accounts, but they are separate from their normal savings/checking accounts.

Yeah, that's what I mean to say. I'm going to transfer it to a traditional IRA.

Maybe E*Trade for the IRA: https://us.etrade.com/e/t/home/iracd?_skinnertab=bank

And GMAC Bank for a Money Market Account: GMAC Bank : High Interest Money Market Savings Account

[Lindahfx]

Great job!!!

[Skooby]

n/m...see new post.

[EverydayFinance]

I'm surprised borrowing through Prosper.com didn't come up in the conversation. I've posted extensively on this at my site, but essentially, with the FICO score listed and no previous public records, etc. you could probably get a real good interest rate way below these credit card rates. If you're this close to paying it off now, may not be worth the time and energy to apply and get the loan, but essentially, for borrowers, it's completely risk free. I generally see people with credit card rates of 25% plus, getting loans through Prosper at 13-16% with B-C credit scores. Anyone else reading the thread should consider it. If you want more info and advice on Prosper, fee free to stop in at everydayfinance.

Dan