Well you have a plan. Start by forgetting the balances on the cards, but instead, start paying the card with the highest interest rate, and pay that off first. Then move to the card with the next highest, and so on. That will save you a ton in interest rates and possibly over the limit fees. You might also contact the CC companies and explain your situation. Many times you can get the interest stopped and/or over the limit fees stopped. Explain that you are willing to pay the balances but need a little help from them. Most of the time they will be willing to work with you since they do not won't you to default. I probably wouldn't transfer balances unless you get 0% interest as fees to do so can add up quick. You might also think about getting a different car to get a lower payment. That's a really large payment for your income. If your upside down on the loan, you would probably be better off just keeping it.

This can be solved very easily.

1. Pay the $250 to the fist credit card with the lowest balance. This way you see the quickest results. Don't worry about the interest rates when you pay more down on your credit card not just the minimum payment your actually effective interest rate will be a lot lower.
2. Then proceed on to the next card with the next lowest balance and pay the $250 + cc1 Minimum payment + CC2 Minimum payment. You will pay this card off in no time.
3. Then take the last card and apply the $250 + minimum payments from CC1, CC2, and CC3. Don't worry about the balance transfer it will only slow you down.

Finally one last note in order for any of this to work you must not add anymore debt to your credit cards. Stick to it and you can do it.

Interesting comments, and I don't think any are necessarily wrong.

Personally, though, I'd pay off the card with the highest balance, providing that the interest rate is comparable to the others - as this is the area where you'll be paying most in debt charges by comparison. Paying that off faster could therefore free up other income quicker, and allow you to pay off the smaller card balances even faster.

2c.

Hi,
You should actually maintain the minimums on all your cards. Pay as much extra on one card (either the one with the lowest balance or the highest interest). As you pay this card off, apply what you were paying on that card on top of the minimum you are already paying on the next card (either the one with the lowest balance or the highest interest). keep doing this till you have paid all off. I recommend doing the lowest balance b/c usually you pay these off quicker so their is a big emotionaly payoff and satisfaction from paying that card off and it keeps you going. Hope this helps!


quote=lilo;9238]I am 20 years old with a monthly gross income of $1900.00 after taxes I bring home about $1350.00 here are my monthly bills.

Car pmt $342.00
1st Credit Card balance $500.00 (credit limit $1000.00)
2nd Credit Card balance $2000.00 (credit limit $3500.00)
3rd Credit Card balance $4000.00 (credit limit 3500.00 waaay over limit)

Household bills (groceries, gas etc) $600.00 a month

My question is, I will have the 1st cc paid off in 2 months by paying $250.00 a month towards it. After that, should I start paying more on the 2nd card til it is paid off? Or should I do a balance transfer of $500.00 from the 3rd card to the 1st card to atleast get that to 100% instead of being over the limit?

I am trying to save (what is left of) my credit I think my score is at 650.

I was just a stupid girl who was living in denial, I am now back to reality! Help![/quote]

Have you tried calling the card you are currently over the limit of? I would ask them if there is some sort of deal you could do to have to stop paying that over limit fee (mine is $35/month if I were over the limit)? Over exaggerate your situation and see if you can get them to help you out?

Call to try to lower your interest rates. Pay off the highest rate cards first. Is it really necessary to spend $600 a month for groceries? Try to cut back where you can. Use coupons and only buy what you need at this point.

I don't know that I'd advise this. Do you know that the cc co's can raise your interest rate just if you call them and tell them you are in a hardship right now? They are fair weathered friends.

Greatest of luck to you.

First you need to get in control of the 3rd credit card if you are over the limit. I can't even imagine what they are charging you for being over your limit. Than you need to pay off the smallest and than the next largest. Make sure to pay the minimum on other cards. Then rips those suckers up and quit using them. Also, why is your car payment so high? Can you sell it and buy a used one for a couple thousand. You are car poor! Get out of debt asap. Your too young to have so much debt.

Get a second job to pay off the credit cards and cut them up. You don't want to go deeper in to credit card debt.

Congratulations! You are no back to the real world.

Start by fixing that card that is over limit. It will keep hurting you more and more. Once that is at least below the limit your credit score may stop taking damage.

Then work on the high interest rate card. Your credit score will come around and you can try to Balance Transfer elsewhere.

Use Dave Ramsey's Debt Snowball plan. It is more effective. Good advice.