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jimmule75

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Reduce my monthly min, Reduce my debt to income for each card, or pay off biggest card first?
ok so I have 7 cards with 21000 total in debt. I am getting a check for a side job I did for 4700 next month. I can either pay off one card with a monthly payment of $150 or I can pay off all the smallest cards and i'll save about $300 a month. the problem is the highest cards have a credit utilization of about 90%. if I disperse the money evenly through the 5 highest cards I can probably bring the CU (credit utilization) down to under 50% for each card except for 1. Which of my three options will help me more, will I be able to increase my credit score more and potentially get a consolidation loan? right now because of my debt to income being 47% I cant get a loan at all.

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HOLLY COW , 21000 in Credit Card Debt.

Step 1) Take every Credit Card out of your Wallet.  This is a Must.   Put them away, Lock them up you are out of Control,  The cards do not need to see Daylight untill you pay them all off to 0.

Step 2)  Do you have a Budget?  Does not seem that you do if you have 21K in Debt.   Get a Budget done and live by it,  Update it Weekly.

Step 3)  Do you have at least 1000 in Savings?   If not you need to put 1000 in Savings first. 

Step 4)  Pay off the Smallest CC Debt first,  then on to the next smallest one etc.  

Step 5)  Live on Cash until you have every CC Paid off.  ( don't think about the debit cards either )

Google Dave Ramsey and start reading.

Good Luck

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