Congrats for keeping the $900 tuition debt in your debt portfolio. And, congratulations for your son offering to pay it. - Youre doing the debt journey so understand. Make sure he realizes that small amiunts add 7p and that you are willing to take less than the full amount as and if he comes up with the money; be sure to put it dkwn on the tuition, no juggling of funde.
With the $526 paid on the parking ticket paid off, theoretically you have @$500 available to pay on extra debt. That would be enough to pay off the @$300 on your husband's credit card. (EDIT $200 ON YOUR HUSBAND'S CREDIT CARD.) And also put a chunk ofmchange against the Capital One card; maybe even get it paid off. Your extra payments and snowball approach are beginning to get traction.
If credit score is in the back of your mind, utilization ratios become important. The utilization ratio is how much you may borrow versus how much you have borrowed in percents: balance/ limit x100. The utilization ratio is taken on a per card basis and also overall. A utilization ratio of no more than 35% on each card is a big number in terms of credit score. A maximum of 10% is prefered and a minimum in determing borrowing amounts on some loan types and also interest rates. Off camera, consider working up your utilization ratio on all of the credit cards. Also the balance amount for a 35% credit utilization plus the balance amount for a 10% ratio. - This may or may not influence some of your repayment strategies as you progress. Another way to decrease your utilization ratio is to increase your borrowing limits on your cards. This DOES NOT mean that on a personal level it is ok to charge to the new maximums. Getting your interest rate lowered on any one of your cards is another way to improve your credit score. Currently it is easier to get a limit raised than an interest rate lowered. Once you get movement either way on one account it is easier to get movememt on the others.
Assuming you get your husband's credit card paid off in December '24, the Capital One card paid off in December '24, any left overs paid on the dental, and you have about $500/ month to work with - I would make a lump sum payment of $500 on the $800 personal loan in Jsn '25; this would leave a $300 balance on this personal loan. Making good faith efforts of paying down personal loans is good all over. Anything beyond the $500 in January '25, I would put against the first @$300 -@$400 dental bill. (Whike Jan '25 is a 3 paycheck month for many, dint forget that the first February '25 paycheck will be later.) In February '25, I would finish off the $300 remaining in the $800 personal loan followed by an emphasis on paying off the first @$389 dental bill. Once the $800 personal loan and the first dental line item are paid, I would budget a personally set minimum amount on the remaining dental balance and no more than $200/ month. At $200/ month it would take about 5 to 7 months to pay off. Instead of making the dental balance a debt of interest (beyond the self assigned minimum) i would make the @$2700 CCBI debt my debt of interest. I am assuming it is interest bearing and that it is a high or higher interest debt. Again assuming you have about $500/ month to throw at debt balance reduction this would translate into about $300/ month and take about 9 months to pay off. Credit rating wise, it would show as regular minimum payments because both are visible as opposed to the persinal loans.
I'm exciting about making another debt payment in November. I will be providing an update each month until i am debt free.
GREAT JOB!!!
Newbie here! Great debt video. Good luck
@@c.parker8439 happy you are here. Thank you 🙏
Margo your doing great🫶🏽🫶🏽
Congrats for keeping the $900 tuition debt in your debt portfolio. And, congratulations for your son offering to pay it. - Youre doing the debt journey so understand. Make sure he realizes that small amiunts add 7p and that you are willing to take less than the full amount as and if he comes up with the money; be sure to put it dkwn on the tuition, no juggling of funde.
Thanks for the advice
With the $526 paid on the parking ticket paid off, theoretically you have @$500 available to pay on extra debt. That would be enough to pay off the @$300 on your husband's credit card. (EDIT $200 ON YOUR HUSBAND'S CREDIT CARD.) And also put a chunk ofmchange against the Capital One card; maybe even get it paid off. Your extra payments and snowball approach are beginning to get traction.
If credit score is in the back of your mind, utilization ratios become important. The utilization ratio is how much you may borrow versus how much you have borrowed in percents: balance/ limit x100.
The utilization ratio is taken on a per card basis and also overall. A utilization ratio of no more than 35% on each card is a big number in terms of credit score. A maximum of 10% is prefered and a minimum in determing borrowing amounts on some loan types and also interest rates. Off camera, consider working up your utilization ratio on all of the credit cards. Also the balance amount for a 35% credit utilization plus the balance amount for a 10% ratio. - This may or may not influence some of your repayment strategies as you progress.
Another way to decrease your utilization ratio is to increase your borrowing limits on your cards. This DOES NOT mean that on a personal level it is ok to charge to the new maximums. Getting your interest rate lowered on any one of your cards is another way to improve your credit score. Currently it is easier to get a limit raised than an interest rate lowered. Once you get movement either way on one account it is easier to get movememt on the others.
Assuming you get your husband's credit card paid off in December '24, the Capital One card paid off in December '24, any left overs paid on the dental, and you have about $500/ month to work with - I would make a lump sum payment of $500 on the $800 personal loan in Jsn '25; this would leave a $300 balance on this personal loan. Making good faith efforts of paying down personal loans is good all over.
Anything beyond the $500 in January '25, I would put against the first @$300 -@$400 dental bill. (Whike Jan '25 is a 3 paycheck month for many, dint forget that the first February '25 paycheck will be later.) In February '25, I would finish off the $300 remaining in the $800 personal loan followed by an emphasis on paying off the first @$389 dental bill. Once the $800 personal loan and the first dental line item are paid, I would budget a personally set minimum amount on the remaining dental balance and no more than $200/ month. At $200/ month it would take about 5 to 7 months to pay off. Instead of making the dental balance a debt of interest (beyond the self assigned minimum) i would make the @$2700 CCBI debt my debt of interest. I am assuming it is interest bearing and that it is a high or higher interest debt. Again assuming you have about $500/ month to throw at debt balance reduction this would translate into about $300/ month and take about 9 months to pay off. Credit rating wise, it would show as regular minimum payments because both are visible as opposed to the persinal loans.
The is very good information thank you again