SavingsTalk.com

Exodus

I'm trying to establish a budget for myself, keep figures of what's coming in and out, pay some debt down, manage my recurring monthly bills and try to begin saving. Basically, I'm trying to get my shit together.

I'm doing this, but starting ~$1300 in the hole between two credit cards.
I get paid the day after I work, in cash (tips, reported before I get them) and every two weeks by check.
I have a cell phone bill (~$75-80\mo)
I have a car insurance bill (~$135\mo)
I have credit card bill A
I have credit card bill B
I have a club membership ($95\mo)

Credit Card A is a Chase\Marathon Gas\Credit Card (nightmare). It's currently at or around 28.24%, has an $800 credit limit, and the balance is $807.71. The next bill is due on 1\02 with a minimum payment of $30.71.

Credit Card B is with Bank of America. I don't know the current PR (estimated around 20% if I remember correctly). The balance is $482.45 of an available credit limit of $500. The next payment is due the 31st at a minimum of $15.

Those are both for examples of current information.

With an approx. need for $400 to cover bills monthly, how would you all recommend I go about paying my credit card debt down? I understand I'd want to pay the Chase card off first, having a higher interest rate, but I also can't be delinquent on the BOA card doing it.

I prefer to pay twice the minimum payment if I can, but the goal is paying the Chase card down ASAP.

Would this work, or does someone have a better idea:
- Pay 2X the MP of the BOA card monthly
- Dedicate the sum of (monthly total income-$400-2XMPofBOA=_) to the Chase card

That's about the smartest way I can gather to continue paying more than the MP for one card, focus on paying another down and still not be missing out on bills for the month. I just quit smoking cigarettes and picked up the club membership simultaneously, leaving me with MORE cash monthly at my disposal. I'm NOT giving the club up, nor am I changing my cell phone plan to be cheaper. My car insurance will be staying the same as well.

I was told if you pay a credit card company more than the minimum payment, the difference will be applied as a payment on interest and not on principle unless you specifically tell them to. So, I was curious, how does it automatically distribute the remainder of an overpayment when you pay your bills online?

I have more inquires, but time's short so I'll return to this thread with them later.

Thanks

briansol

1300 bucks in debt is nothing.

what is your weekly income? you mention tips, so i'm assuming your income can be/is very varried week to week.

do you have rent or anything else besides stuff like food/gas that you aren't mentioning?

Exodus

I generally make $20-60 a night, approx. $50 per paycheck.

Shelling out money for current expenses sucks. I'd love to have the ability to just work on my debt 100% until it's gone.

I've heard you lose points on your credit rating when you close a credit card account within so long after it's been opened. So, if that's true and I have to wait, then I have an inactive history, which is also not good for points. Can someone clarify?

Exodus

I have also about $5-7000 of personal debt with my parents, not just those crddit cards. My bills for the time being are what I posted though, I have no other expenses at this time.

titan22

you wont lose point on your credit rating, but it does effect your review. keep the card open, just don't use it. cut it up or hide it from yourself.
pay off your parents a little at a time. they will appreciate the effort.

your interest rates are rediculously high. don't use them if you don't have to. and if i had to guess, you probably filled them up with frivolous and useless junk. anyways, call them tomorrow and ask them to lower your interest rate, often they will just because you ask. pay more than the minimum if you can and DO NOT ask for an increase in credit limit until you have more income and better credit scores.