Author Topic: Credit card debt  (Read 11535 times)

Offline moishe1

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Credit card debt
« on: October 24, 2018, 12:12:40 PM »
I searched "Credit card debt"  and could not find anything

I would like to pay off about 20k in Credit Card debt with the least amount of interest possible. My plan is to do a balance transfer now and pay what I can and in about a year do that again until I'm done. 

3 questions from a novice who wants to pay off debt

1. Does doing a balance transfer affect my abillity to apply for credit cards?
2. Will it somehow stop me from getting all those balance transfer offers? like if you do it once, somehow the other CC companies stop sending you the offers because you did it once? 
3. What are your ideas for paying of credit card debt?

Offline moishe1

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Re: Credit card debt
« Reply #1 on: October 24, 2018, 12:29:27 PM »
I should add that I have a good credit score - about 750

Offline grodnoking

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Re: Credit card debt
« Reply #2 on: October 24, 2018, 12:55:06 PM »
I should add that I have a good credit score - about 750
I really don't know much about doing this, but would a personal loan help? Probably give you a better rate than your credit card. (Obviously besides for what you can do a balance transfer to a apr free (for whatever months they give) CC).
I'm not who you think I am.

Online htg123

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Re: Credit card debt
« Reply #3 on: October 24, 2018, 01:41:18 PM »
I really don't know much about doing this, but would a personal loan help? Probably give you a better rate than your credit card. (Obviously besides for what you can do a balance transfer to a apr free (for whatever months they give) CC).

personal loan will cost more than balance transfer - assuming the bill is paid in full by the end of the interest-free period.
Balance transfer shouldn't do too much to your credit, compared to your current situation.

This is not financial advice. Make sure you do your due diligience.

Offline grodnoking

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Re: Credit card debt
« Reply #4 on: October 24, 2018, 02:05:33 PM »
personal loan will cost more than balance transfer - assuming the bill is paid in full by the end of the interest-free period.
Balance transfer shouldn't do too much to your credit, compared to your current situation.



(Obviously besides for what you can do a balance transfer to a apr free (for whatever months they give) CC).


This is not financial advice. Make sure you do your due diligience.
Ditto
I'm not who you think I am.

Offline cozmohoot

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Re: Credit card debt
« Reply #5 on: October 24, 2018, 02:20:11 PM »

Online Redbull3

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Re: Credit card debt
« Reply #6 on: October 24, 2018, 02:27:20 PM »
Any assets for secured loan - home, car, 401k?

Online htg123

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Re: Credit card debt
« Reply #7 on: October 24, 2018, 02:29:50 PM »
Any assets for secured loan - home, car, 401k?

secured loan won't beat BT promos

Offline farmbochur

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Re: Credit card debt
« Reply #8 on: October 24, 2018, 03:32:11 PM »
Depending on where do you live, you can MS your way out of debt. Can even turn a profit as long as you're earning 1.5%+ return on spend (which is pretty easy).
Risk is opportunity

Online Redbull3

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Re: Credit card debt
« Reply #9 on: October 24, 2018, 03:38:06 PM »
Depending on where do you live, you can MS your way out of debt. Can even turn a profit as long as you're earning 1.5%+ return on spend (which is pretty easy).
Yeah keep floating for free by borrowing from the next month to pay for the current month

Offline moishe1

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Re: Credit card debt
« Reply #10 on: October 24, 2018, 04:53:29 PM »
Depending on where do you live, you can MS your way out of debt. Can even turn a profit as long as you're earning 1.5%+ return on spend (which is pretty easy).

Can you elaborate or link me to a post about this?

Offline moishe1

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Re: Credit card debt
« Reply #11 on: October 24, 2018, 04:56:35 PM »
Any assets for secured loan - home, car, 401k?

Yes, but I would want them tied to anything.
It's not crazy CC debt (20k is a lot of money but not worth tying it to my car and home which I am BH paying on time)  and I kinda like the flexibility of transfers that I can pay over a longer period of time and only cost me 3 percent a year. provided that i can do a balance transfer again and again if needed

Offline moishe1

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Re: Credit card debt
« Reply #12 on: October 24, 2018, 04:58:39 PM »
Balance transfer shouldn't do too much to your credit, compared to your current situation.

I'm at 18 percent utilization of my credit plus a recent 650k mortgage and 2 car payments. not late on any payments BH.

Offline smart man

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Re: Credit card debt
« Reply #13 on: October 24, 2018, 06:50:45 PM »
I'm at 18 percent utilization of my credit plus a recent 650k mortgage and 2 car payments. not late on any payments BH.
As Dave Ramsey would say "downgrade your cars".

Offline moishe1

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Re: Credit card debt
« Reply #14 on: October 24, 2018, 08:46:22 PM »
As Dave Ramsey would say "downgrade your cars".

It's downgraded already :)

Offline ckmk47

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Re: Credit card debt
« Reply #15 on: October 24, 2018, 10:01:10 PM »
I'm at 18 percent utilization of my credit plus a recent 650k mortgage and 2 car payments. not late on any payments BH.
[DDF note:  You can add to a post you've written by clicking 'modify' found in the top right of the post's box.  ]
18% utilization is not too much to be approved for new cards.
As far as BT's dissappearing once you start using them, open a few cards at once to maximize it now.  IDK if that will stop them from coming next year, but you'll have paid off much of the debt in the meantime anyway.
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Offline moko

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Re: Credit card debt
« Reply #16 on: October 24, 2018, 11:38:26 PM »
Depending on where do you live, you can MS your way out of debt. Can even turn a profit as long as you're earning 1.5%+ return on spend (which is pretty easy).
for someone with $20k in CC debt, this is a terrible idea

Offline farmbochur

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Re: Credit card debt
« Reply #17 on: October 25, 2018, 12:23:39 AM »
for someone with $20k in CC debt, this is a terrible idea
While I generally would agree, maybe there's some wiggle room for someone who generally spends within his means but encountered financial hardship that is unlikely to repeat.
Risk is opportunity

Offline gozalim

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Re: Credit card debt
« Reply #18 on: October 25, 2018, 01:10:35 PM »
I really don't know much about doing this, but would a personal loan help? Probably give you a better rate than your credit card. (Obviously besides for what you can do a balance transfer to a apr free (for whatever months they give) CC).
Related Question to this thread. (asking for a friend)
someone with one-time debt, but closer to 40K, so BT, while good, isn't gonna cover it (and paydown will be more 4-5 years than the 18-21 months of a BT card).

Is a personal loan the way to go? what kind of rates can he hope to find?
what's the best way to go about it? specific banks? bank vs. Credit unions?

Is he better off trying to negotiate down the rate from the CC issuer?

where would he get more info?

@ChaimMoskowitz
« Last Edit: October 25, 2018, 01:17:47 PM by gozalim »

Offline chbochur

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Re: Credit card debt
« Reply #19 on: October 25, 2018, 04:24:11 PM »
Related Question to this thread. (asking for a friend)
someone with one-time debt, but closer to 40K, so BT, while good, isn't gonna cover it (and paydown will be more 4-5 years than the 18-21 months of a BT card).

Is a personal loan the way to go? what kind of rates can he hope to find?
what's the best way to go about it? specific banks? bank vs. Credit unions?

Is he better off trying to negotiate down the rate from the CC issuer?

where would he get more info?

@ChaimMoskowitz
Why not do a bt for the first 12/18 months and then from there take out a loan