Juggling the balances...

[Preston]

Okay... I am being faced with a major decision...

I just got an offer for an 8% balance transfer rate life of loan on one of my credit cards. I took it. To the tune of $10,000.

Now I have a decision tomake.

I have a total of around $32,000 in CC debt which I am working on. We have made progress from $50000 as of June 1 (the day I confronted out debt head on and made a plan)

There are two major chunks of debt I am dealing with:

Part A: I have a Visa cardwith a $9800 balance on it (7.9%APR) and a Mastercard with a 3000 (9.9% APR). Neither of these is too bad but the problem is that they are being handled by a CCCS which is charging me a $45(!) a month fee for their "services." If I take these cards out of CCCS the APRS will go up to 30%. There is also a negative mark on my credit for being involved with CCCS. I can come up with the remaining amount to cover both of these in the next month if I use the $10000 for these.

Part B: I have a $6000 balance on a Mastercard which is a 11.99% APR. I currently have a $9500 balance another MC at 6.9% APR until Jan 28,2008. After that the APR will be 19.99% APR. As of right now I will not be able to pay the $9500 in full before it closes in January so it will shoot up to the high APR. However, if I apply the $10000 I have available to me I can knock out the 11.99% APR and then put the remaining $4000 toward the $9500 balance.. leaving me with a $5500 balance to pay off by January. I might not get it paid in full by Jan 28, but I should be able to shortly thereafter.

My wife and I have about $1500-$2000 a month we are able to apply toward our debts.

Any advice would be appreciated.

[sdrjeolsen]

Personally, I would go with part B first. You are already with CCCS, so that negative mark wont disappear by paying those; my guess is that it will still show up on your history.

Part B is at a higher rate, so mathmatically, that would be a better move. Besides the rate will be going up in January.

Lastly, if you have part B paid off, adding that extra monthly amt to the 1500-2000/mo you are curently putting toward debt, you will be able to pay off the CCCS stuff shortly thereafter.

That's just me, but that that would save you the most interest. And, you would still be paying the CCCS stuff off early.

[Michelle68]

I would go with "B" also.


--Michelle