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Message
re: I’ve been financially irresponsible with credit cards for years. I have 15k in debt.
Posted on 2/17/23 at 8:44 pm to Flipper94
Posted on 2/17/23 at 8:44 pm to Flipper94
quote:
I would like to know how much my scores would improve if I paid them all down pretty much to a couple hundred a piece just to keep them open.
Pay them down to $0
0
Posted on 2/17/23 at 8:46 pm to I B Freeman
quote:
Today after decades my business is something I am proud of
chinese trinkets? we saw how you hated tariffs and loved killing american jobs and loved chinese dumping of goods.
Posted on 2/18/23 at 12:48 am to Flipper94
Are you trying to buy a house soon or something? Not trying to be an arse, but if I owed that much on cc at 20ish % interest rate, my main worry would be paying them off asap, regardless of credit score.
Keep all monthly payments current, pay them off, and credit score will increase. No one will be able to say how much credit score will increase without knowing any history of late payments/collections/etc., and if they were 6 years ago or 6 months ago..
Keep all monthly payments current, pay them off, and credit score will increase. No one will be able to say how much credit score will increase without knowing any history of late payments/collections/etc., and if they were 6 years ago or 6 months ago..
Posted on 2/18/23 at 3:07 am to Ric Flair
I think OP needs to move on from wallowing and come up with a plan based on his budget.
Even if it's a 5 year plan and doesn't match up with "hurry up and take 3 jobs and pay it off approach" everyone seems to favor.
Not everybody makes $300K a year and with some shifting around, can fix their finances in months.
I think identifying the behavior that caused this problem needs to be addressed in parallel. I speak from experience.
He also needs to understand he needs to be "saving" in parallel, not just throwing all his money at debt service. Target 10-15% initially to save as well as pay off the debt.
This will ensure you're not constantly feeding the debt by cycling it every month.
I know some of this sounds like basics but I was a debt junky for years. I'd work to pay off $20K in CC debt just to see it balloon to 10K again in 6 months with little savings beyond debt and lifestyle service.
Take this time as an opportunity to pay off your debts, fix the behavior and develop financial goals. You got to take this as a learning process. If not, you'll stay where you are or worse...get out and fall right back in.
Take it from the guy that's paid 20K off a few times and serviced $35K in back taxes in his lifetime.
Even if it's a 5 year plan and doesn't match up with "hurry up and take 3 jobs and pay it off approach" everyone seems to favor.
Not everybody makes $300K a year and with some shifting around, can fix their finances in months.
I think identifying the behavior that caused this problem needs to be addressed in parallel. I speak from experience.
He also needs to understand he needs to be "saving" in parallel, not just throwing all his money at debt service. Target 10-15% initially to save as well as pay off the debt.
This will ensure you're not constantly feeding the debt by cycling it every month.
I know some of this sounds like basics but I was a debt junky for years. I'd work to pay off $20K in CC debt just to see it balloon to 10K again in 6 months with little savings beyond debt and lifestyle service.
Take this time as an opportunity to pay off your debts, fix the behavior and develop financial goals. You got to take this as a learning process. If not, you'll stay where you are or worse...get out and fall right back in.
Take it from the guy that's paid 20K off a few times and serviced $35K in back taxes in his lifetime.
This post was edited on 2/18/23 at 3:17 am
Posted on 2/18/23 at 6:40 am to Flipper94
Can I ask what your bad habits are? You should attack those, too.
I've never spent more than I have available to pay off immediately outside of the obvious large purchases that must be legitimately financed.
I've never spent more than I have available to pay off immediately outside of the obvious large purchases that must be legitimately financed.
Posted on 2/18/23 at 6:55 am to Flipper94
You can use a site like wallethub. It will check your credit score and you can type in a new balance and see how much your score will go up. At a minimum it's motivation to pay it down to certain levels to see your score go up. Even if you don't need the higher score. Helps set goals. Was in the same position as you a long time ago. I overcame it.
Posted on 2/18/23 at 7:07 am to LEASTBAY
Diamonddawg’s post above is so spot on it’s not even funny.
I can relate 100%. Back when I made $75k it seemed like I was buried at $15k. Now making the kind of money I make it’s much easier to play the shift around game some until I can knock a bill out in a month or two. Or get some ancillary income in from a side hustle. Believe it or not, shite happens to people making $300k as much as it does $75k people, but we usually have a little more wiggle room than others. And before anybody bashes somebody making that kind of money that has life events and debt, don’t. $300k in Baton Rouge/New Orleans is not $300k in NY, DC, LA.
Don’t kill yourself trying to knock it out and def save while you’re doing it as mentioned above. And God forbid, whatever you do don’t stop contributing to your 401k and think I’ll just take that extra money and knock it out instead. It never works like that and it’s not a dollar for dollar trade since 401k is pretax dollars coming out. And then you miss months or years of contributing to a 401k. Yes another lesson learned growing up.
I can relate 100%. Back when I made $75k it seemed like I was buried at $15k. Now making the kind of money I make it’s much easier to play the shift around game some until I can knock a bill out in a month or two. Or get some ancillary income in from a side hustle. Believe it or not, shite happens to people making $300k as much as it does $75k people, but we usually have a little more wiggle room than others. And before anybody bashes somebody making that kind of money that has life events and debt, don’t. $300k in Baton Rouge/New Orleans is not $300k in NY, DC, LA.
Don’t kill yourself trying to knock it out and def save while you’re doing it as mentioned above. And God forbid, whatever you do don’t stop contributing to your 401k and think I’ll just take that extra money and knock it out instead. It never works like that and it’s not a dollar for dollar trade since 401k is pretax dollars coming out. And then you miss months or years of contributing to a 401k. Yes another lesson learned growing up.
Posted on 2/18/23 at 7:32 am to Im4datigers
quote:
Believe it or not, shite happens to people making $300k as much as it does $75k peopl
quote:
Now making the kind of money I make it’s much easier to play the shift around game some until I can knock a bill out in a month or two.
I get that you live in some high cost of living area, but $300k in Manhattan is the same as 120k in BR. That’s still more than comfortable enough that you should be able to pay any bill in one month
Posted on 2/18/23 at 7:47 am to Upperdecker
Didn’t say me just said money goes fast at $300k.
After taxes, insurance, 401k etc, my take home pay is 56% of my gross pay. Mortgage, two cars, private school and living expenses for a family of four, I promise you goes faster than a hooker on bourbon street during Mardi Gras.
Just saying don’t use a broad brush for all levels of income.
After taxes, insurance, 401k etc, my take home pay is 56% of my gross pay. Mortgage, two cars, private school and living expenses for a family of four, I promise you goes faster than a hooker on bourbon street during Mardi Gras.
Just saying don’t use a broad brush for all levels of income.
Posted on 2/18/23 at 7:49 am to Flipper94
Isn’t the oldest cc the one that would have an effect on credit score if closed?
If you have multiple cards, pay them all off, close them except the oldest one and focus on being responsible with that one.
If you have multiple cards, pay them all off, close them except the oldest one and focus on being responsible with that one.
Posted on 2/18/23 at 7:50 am to Fat Bastard
i know you have no respect for American entrepreneurs who employ Americans if they use imported manufacturing inputs. You have no clue what you are talking about. How many Americans do you employ?
Back to the OP—-follow the maxim of only borrowing to buy appreciable assets and income producing assets and you will be far better off financially. Forget your credit score—it will be fine if you that maxim.
Back to the OP—-follow the maxim of only borrowing to buy appreciable assets and income producing assets and you will be far better off financially. Forget your credit score—it will be fine if you that maxim.
This post was edited on 2/18/23 at 7:54 am
Posted on 2/18/23 at 8:46 am to Flipper94
Posted on 2/18/23 at 9:10 am to Flipper94
Positive and moving forward, well done!
What might be helpful (mindset related) is to consider those dollars paid to CC companies in interest as "$ soldiers" fighting to create wealth and control; make them your soldiers, from growing CC company wealth into growing your own wealth and giving you the control and financial options in life that CC companies do not want you to have.
They fight for you everyday when you flip from paying CC companies into paying yourself.
Good luck!
What might be helpful (mindset related) is to consider those dollars paid to CC companies in interest as "$ soldiers" fighting to create wealth and control; make them your soldiers, from growing CC company wealth into growing your own wealth and giving you the control and financial options in life that CC companies do not want you to have.
They fight for you everyday when you flip from paying CC companies into paying yourself.
Good luck!
This post was edited on 2/18/23 at 9:13 am
Posted on 2/18/23 at 12:37 pm to Flipper94
Have you been paying thr minimum at least? No late payments or collections or anything like that?
As long as it's just utilization and carrying a balance it will probably improve drastically pretty quickly if you get them paid down.
It's the stuff that stay on your record loke late payments, things turned over to collections, etc that really hurt long term.
1. Work on plaything them down. Then keep your utilization low after that.
2. Ask for credit limit increases every six months. That will make it easier to keep your utilization low with a higher limit. And also will help your score.
3. Pay that shite off in full at least every month once you get it fixed.
You could also look at getting a loan to consolidate the amounts that's at a lower rate. Pay them all of with a lower rate loan. Then pay it off over time.
As long as it's just utilization and carrying a balance it will probably improve drastically pretty quickly if you get them paid down.
It's the stuff that stay on your record loke late payments, things turned over to collections, etc that really hurt long term.
1. Work on plaything them down. Then keep your utilization low after that.
2. Ask for credit limit increases every six months. That will make it easier to keep your utilization low with a higher limit. And also will help your score.
3. Pay that shite off in full at least every month once you get it fixed.
You could also look at getting a loan to consolidate the amounts that's at a lower rate. Pay them all of with a lower rate loan. Then pay it off over time.
Posted on 2/18/23 at 12:57 pm to Flipper94
quote:
I would like to know how much my scores would improve it
For what purpose? Unless you're applying for more debt, your credit score is irrelevant. I gladly pay a deposit on electricity to keep from giving another set of idiots my SSN, and my car insurance doesn't measurably change even with 100+ point swings in my FICO or equivalent score.
Everyone suggesting closing accounts is somehow a deterrent to racking up debt are woefully misguided. These aren't the days where you filled out a paper application and mailed it into Bank of America to pray that you get approved within 3 weeks so you can get new tires. Credit is instant approval, including from your phone, at an online shopping cart, etc. There is no barrier to entry, period.
Posted on 2/18/23 at 3:49 pm to Bestbank Tiger
Start with the one with the lowest balance
Pay the min on all the other ones
Knock out each low balance first
Pay the min on all the other ones
Knock out each low balance first
Posted on 2/18/23 at 4:09 pm to Flipper94
quote:
My score is 680
This isn't catastrophic. Stop borrowing money.
quote:
I paid them all down pretty much to a couple hundred a piece just to keep them open.
Do the debt snowball. Focus on the smallest balance and pay it off. If it is not your oldest card, cancel it. Move on. Only keep the oldest card open at the end and pay it off every month.
You might be years getting the $15k paid off. A low credit score isn't going to hurt you if you stop borrowing money. Borrowing money is what got you here.
You borrow money to buy a house or grow a business. You do not borrow money to buy clothes and TVs and shite you do not need.
Posted on 2/18/23 at 4:34 pm to Ace Midnight
quote:
You do not borrow money to buy clothes and TVs and shite you do not need.
100%. Don't forget to add women and weddings to that list
Posted on 2/19/23 at 7:37 am to bobdylan
quote:
What is the purpose of this? We use CC for most purchase due to the benefits and protection but simply pay the balance each month, never paid interest.
The benefit is mostly to control impulse. My wife was much like the OP for a portion of her 20s.
Seeing the money she’s already spent come out of the checking account every week made it easier to control the impulse than if we waited to pay once a month.
Posted on 2/19/23 at 8:02 am to tlsu15
quote:
Seeing the money she’s already spent come out of the checking account every week made it easier to control the impulse than if we waited to pay once a month.
shite wished that worked for mine. She just think it magically gets replenished even if it not the 1st or 15th!!!
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