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Lower rate CCs?


Forum: Financial Planning and Budgeting

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  #1  
January 30th, 2010, 10:09 AM
luvmygirls333's Avatar Super Mommy
Join Date: Jul 2009
Posts: 623
Hi Ladies,
I've been lurking here a bit lately, since my New Year's resolution to be better with money and pay off our debt I'm embarassed that we let it get this bad, but what's important is that we are doing something about it now. I made a budget and got DH on board and we are finally on the right track, but it's going to take a while. I have been a SAHM for 6 years, and DH doesn't make much money. 3 weeks ago, I started watching a little boy in my home for some extra cash.

So our debt is all in 2 CCs (it was 3, but I just paid one off, yay!)
CC#1 is $15,931.22 (14.99%) min payment is about $340 (limit is $54,000)
CC#2 is $15,184.84 (9.24%) min payment is $306 (limit is $16,000)

We already called CC#2 and asked if we could increase our limit so we could transfer some of
CC#1's balace onto CC#2 b/c it has the lower interest rate, but they said no b/c our debt was too high

So my question is, should we try to get a 0% for 6 months type of card, or at least something lower than 14.99%, to transfer at least SOME of CC#1's balance onto? DH thinks that no one is going to give us a CC b/c our debt is so high. Do you think we'd be eligible for one? I know that it hurts your credit to apply for cards, but we don't plan on using credit for anything until our debt is paid off (then we want to buy a house). Any tips/advice is welcome.
ETA: And what about a personal unsecured loan from our bank? Would that be a good idea or not? TIA!
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Last edited by luvmygirls333; January 30th, 2010 at 10:12 AM.
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  #2  
February 1st, 2010, 08:24 PM
Regular
Join Date: Jul 2009
Location: Texas
Posts: 85
Quote:
Originally Posted by luvmygirls333 View Post
Hi Ladies,
I've been lurking here a bit lately, since my New Year's resolution to be better with money and pay off our debt I'm embarassed that we let it get this bad, but what's important is that we are doing something about it now. I made a budget and got DH on board and we are finally on the right track, but it's going to take a while. I have been a SAHM for 6 years, and DH doesn't make much money. 3 weeks ago, I started watching a little boy in my home for some extra cash.

So our debt is all in 2 CCs (it was 3, but I just paid one off, yay!)
CC#1 is $15,931.22 (14.99%) min payment is about $340 (limit is $54,000)
CC#2 is $15,184.84 (9.24%) min payment is $306 (limit is $16,000)

We already called CC#2 and asked if we could increase our limit so we could transfer some of
CC#1's balace onto CC#2 b/c it has the lower interest rate, but they said no b/c our debt was too high

So my question is, should we try to get a 0% for 6 months type of card, or at least something lower than 14.99%, to transfer at least SOME of CC#1's balance onto? DH thinks that no one is going to give us a CC b/c our debt is so high. Do you think we'd be eligible for one? I know that it hurts your credit to apply for cards, but we don't plan on using credit for anything until our debt is paid off (then we want to buy a house). Any tips/advice is welcome.
ETA: And what about a personal unsecured loan from our bank? Would that be a good idea or not? TIA!
Hello:

I am not credit couselor, but I can tell you that with today's market it will be very hard for you to get approved for another card maybe even a loan.

Card #2 is too close to the limit, thus that was one of the reasons why you were denied. In addition, with all of your cards you only want to use 30% of the limit. You are below that with card 1 so that is good.

Have you tried calling in an requested a lower rate. Its worth a shot and the worst they can tell you is no.

I see that you are you are wanting to buy a house that is why I stated the info about the 30%. Card #2 balance is/will be taking a toll on your credit score.

If it were me and since the balances are so close, I would pay the min on card #1 and try to pay extra towards card 2 so that you are further away from your limit. Once that is paid off or lower to where only 30% of the limit is the remaining balance, I would do the reverse and pay mim on card 2 and pay that extra towards card #1.....Or after that you could transfer a small amount to card #2 and continue paying as much towards both balances as you can.

I know their are others out there who are more knowledgeable and can chime in but that's just my

NAK
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Last edited by Jaydens Mommy; February 1st, 2010 at 08:27 PM.
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