The formatting on this will be awful, I'm sorry I'm on mobile at work.
To put it bluntly, my wife has a CC problem. And I found out how bad it is today. 10k maxed out one card, 5k maxed the other card. The 10k is @ 26% apr the 5k is @ 14%
I immediately took out a personal line of credit of 10k with an interest rate that's not great but it's also less than half of what my wife's credit card interest rate is. 12.5% interest.
I also cancelled Netflix and Hulu, and the gym membership I haven't used in 2 years.
Together after taxes we bring home ~ 4500 a month.
Mortgage : 900 Both vehicles : 700 Daycare : 600 Grocery : 300 (is this normal for 2 adult 1 toddler?) Insurance : 110 Phone : 90 Internet : 80 Gas : 80 Water : 70 Electric : 60 Trash : 20
Total here is ~ 3000 give and take depending on the month and utilities used but this is a good guesstimate.
This is leaving us 1500 left over assuming I have forgotten nothing which I am 100% sure I have.
My plan is to just take her highest CC which is currently maxed out @ 10k and put it all on my line of credit to cut that crazy interest rate out, pay at least double minimum payment on it.
12.5% on a maxed out 10k loan according to my lender would be a 250 dollar minimum payment, with 1500 left over I should be able to double that monthly
The other card is 14% with a 5000 dollar limit, the minimum payment i believe is around 100, once again I should be able to easily double this.
Assuming I double payment for both 1500-700 = 800
What would a smart man do with that extra money? Pay off the bigger sum or apply it to the other? Or is this plan total garbage and if it is I'll do whatever you guys here think the smarter option is.
Thanks a lot. Please help.
Submitted November 27, 2018 at 04:35PM by BrigadierAngus https://ift.tt/2DNv7KD
