Not financial advise. Just an example. - page 2.

Coyster

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Quote from: AndyGryffindor on October 24, 2022, 09:05:36 PM

You only have an extra $80 per month after all the bills are paid and have cut down on any extra expenses so the $80 is all you have to work with.

Well if $80 is all you have to clear all that backlog of debts then you prolly would never end of paying it up even in quite a lot of years to come, the amounts you have written in your OP sum up to quite a huge sum of money, and it is not feasible for $80 to pay up for all that. You could prolly discuss your situation with relatives that are more well-to-do than yourself, if they could help you with some money to pay off some of your debts, they could give you the money outrightly, or even if you are going to pay back it might not come with any interest or fixed payment time.

Having said that, even if you don't wish to do this, you might have to resort to selling your valuables, or doing extra jobs, but the thing is that you must do something that will fetch you more than $80 monthly to cover your debt, anything legal that will earn you more, notwithstanding the inconvenience has to be done.

NotATether

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Quote from: davis196 on October 26, 2022, 05:54:53 AM

Don't pay anything and just declare personal bankrupt/default. Many countries around the world have such option for the citizens to declare a personal default, if they can't payoff their debts. I don't know if your case scenario is real or just a theoretical example.

That's going to screw around with your credit score and could also have ramifications on your house/car/anything else you took a mortgage on. It should be used as a last resort when you've exhausted all other options.

Quote

You can't payoff all that credit card debt with only 80 dollars per month. That's impossible. If you start paying off the debts on one credit card, the other four credit cards will charge you additional higher interest rates for not paying on time. Your overall debt will keep growing, even when you pay small amounts on one credit card. This seems more like a "debt spiral". Going bankrupt is the only way.

But you're right. Or OP can try learning some skills to increase average profit or reduce expenses to have more money available to pay off all that debt. Or perhaps you can sell your house/car to cover all that in one go.

davis196

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Don't pay anything and just declare personal bankrupt/default. Many countries around the world have such option for the citizens to declare a personal default, if they can't payoff their debts. I don't know if your case scenario is real or just a theoretical example.
You can't payoff all that credit card debt with only 80 dollars per month. That's impossible. If you start paying off the debts on one credit card, the other four credit cards will charge you additional higher interest rates for not paying on time. Your overall debt will keep growing, even when you pay small amounts on one credit card. This seems more like a "debt spiral". Going bankrupt is the only way.

NotATether

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Pay off the card with the highest interest first because this particular card will swallow up any payments you make to the lower-interest cards, so you'll be back at square 1.

It's particularly the reason why I despise (and never had) CC debt in the first place.

Reid

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5 credit cards. Wow. And I have none. Thankfully. Cheesy

I don't like credits, it's just an addition for more stress when you have more think about than that stupid plastic card.
Why 5?
I hear you could stretch your credit amount whenever you use it frequently, so the other cards are unnecessary. The only solution for me if I am in that position is just to give back the other 4. Pay the the credit and move back to using cash. It will save you money because you are thinking twice before you spend it and makes you healthy by keeping you away from stress.

Hydrogen

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Quote from: AndyGryffindor on October 24, 2022, 09:05:36 PM

You already moved around your balances and this is the best interest rates you can get.

The method financial planners recommend is to pay bills on time and never make a late payment.

All of which contribute towards having a better credit score with lower interest rates on credit cards, car and home loans.

I can't remember offhand what the average difference in monthly payments was but it is a significant sum of money for all but the super rich.

Arranging to pay for more items on a monthly basis to give credit chex networks more data to track on payments made successfully on time might help to increase personal credit scores.

Being wealthier and having a larger account balance could also contribute towards having lower interest payments.

milewilda

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Quote from: Mr. Magkaisa on October 24, 2022, 11:03:01 PM

- Aren't you the one who owes five credit cards OP?
Then now, you know the advice that can be given to you here in this forum on what to do so that you don't get in trouble, am I right?

In my honest answer, I don't know what to do in such a scenario, because I don't have a credit card and I know that it's not good to have a credit card because you'll end up in more debt.

For sure its his credit cards and this is really something a pit fall for those who do make out bad spending or not really that eager on paying up their credit cards. Cheesy

I do already have a trauma on using up these cards yet i do have bad experiences with these but eventually you would really make yourself learn on spending wisely
once you had realized that it shouldnt really be spend up so easily.
Back on the topic made out by OP then short term duration loans or credits with having less interest might be look up ideal but making up some calculations
it would really be just the same into those long term ones which does have lesser % which these banks wont really be putting you on the easiest path imho.

South Park

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Quote from: AndyGryffindor on October 24, 2022, 09:05:36 PM

Say you have five credit cards that you need to pay off, each with different interest amounts and balances. How do you pay them off the fastest?
1. $500 interest 0.005%
2. $5011 interest 0.035%
3. $3016 interest 0.015%
4. $8976 interest 0.04%
5. $16000 interest 0.09%
You already moved around your balances and this is the best interest rates you can get.
You only have an extra $80 per month after all the bills are paid and have cut down on any extra expenses so the $80 is all you have to work with. Which credit card should be payed off first, second and so on, for the fastest payback?

Should work on all scales from entire countries to individuals.

Only 80 dollars per month can be destined to pay the debt? That is less than 1k per year, besides I do not know if the numbers on the interest column are wrong because it is impossible for a credit card to have such a low interest, I could believe 9% per month but not 0.09%, if that is the case then that 1k per year would not be even enough to pay the interest rate of a single month from the fifth credit card, so someone with that kind of debt and such a low amount of money has probably ruined their life already.

Fortify

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Quote from: AndyGryffindor on October 24, 2022, 09:05:36 PM

Say you have five credit cards that you need to pay off, each with different interest amounts and balances. How do you pay them off the fastest?
1. $500 interest 0.005%
2. $5011 interest 0.035%
3. $3016 interest 0.015%
4. $8976 interest 0.04%
5. $16000 interest 0.09%
You already moved around your balances and this is the best interest rates you can get.
You only have an extra $80 per month after all the bills are paid and have cut down on any extra expenses so the $80 is all you have to work with. Which credit card should be payed off first, second and so on, for the fastest payback?

Should work on all scales from entire countries to individuals.

Credit cards don't have such low rates, unless you happen to be in an interest free rate sort of offer. Credit cards commonly charge 10, 20, 30% or even higher - not fractions of a percent. If you wanted to pay the least amount in interest then you would simply pay off the highest interest rate card and work your way down the list, it's not a difficult concept to understand. The amount owed on the card is pretty much irrelevant in that scenario, as you have to pay back the borrowed capital and just want to seek it increasing by paying off the highest charging card until the balance is all cleared. It is not a complicated calculation, although in other circumstances with a card or two with mega low balances, you might want to pay them off first just to consolidate and have a little more peace of mind that there are less cards outstanding.

el kaka22

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This might be wrong, but I would definitely look to pay up the one with less debt in it. I know that paying up the debt with highest interest rate would look better, but I just feel like if I can remove the number of debts instead of amount, I would be able to focus easier. So, I would pay up the one with $500 and least interest first, then move up from there.

However, if I have this much debt and only 80 dollars to pay them, that's a problem, we are talking about 30k+ dollars debt and only 80 dollars per month to pay it, banks would not allow you to keep paying them with this little amount of money, they will ask you to pay a lot more per month to cover this for sure.

Mr. Magkaisa

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- Aren't you the one who owes five credit cards OP?
Then now, you know the advice that can be given to you here in this forum on what to do so that you don't get in trouble, am I right?

In my honest answer, I don't know what to do in such a scenario, because I don't have a credit card and I know that it's not good to have a credit card because you'll end up in more debt.

Poker Player

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Well, the first thing would be not to have behaved stupidly and not to have gotten into so much credit card debt. But as played (a phrase we use a lot in poker) I would use the snowball method: pay off small debts first, regardless of the interest. From smaller debt to bigger debt. It doesn't make mathematical sense so much as psychological sense, and that's the important thing.

AndyGryffindor

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Say you have five credit cards that you need to pay off, each with different interest amounts and balances. How do you pay them off the fastest?
1. $500 interest 0.005%
2. $5011 interest 0.035%
3. $3016 interest 0.015%
4. $8976 interest 0.04%
5. $16000 interest 0.09%
You already moved around your balances and this is the best interest rates you can get.
You only have an extra $80 per month after all the bills are paid and have cut down on any extra expenses so the $80 is all you have to work with. Which credit card should be payed off first, second and so on, for the fastest payback?

Should work on all scales from entire countries to individuals.

Topic: Not financial advise. Just an example. - page 2. (Read 328 times)