musiqdefunk Posted January 28, 2008 Report Share Posted January 28, 2008 i really didn't know where to post this but i guess this is part of credit repair. I know alot of us are waiting for those income tax refunds to come in. I am specially one of them. I am getting about 3200 dollars as a refund and I wanted to know how I should distrupute this money towards my debts.Furniture Card 2508.00/CL 3900 0 interest 0 payments for one year/ till July 08 17.00 APRFurniture Card 1535.87/CL 2000 0 interest 0 payments for one year/ till July 08 18.99 APRCredit Card 1700.00/CL 2000.00 13.00 APRCredit Card 400.00/CL 500.00 11.00APRWe are looking for buying a home and I know that having high credit usage looks bad. But my wife is concerned that since we have not paid any payments towards the furniture cards the accrued interest will be too much. How should I do. Thanks Link to comment Share on other sites More sharing options...
kb9tbq Posted January 28, 2008 Report Share Posted January 28, 2008 I would recommend paying $1000 to each card bring the balances down evenly so you get better utilization across all of the cards. Put $200 on the last card. Link to comment Share on other sites More sharing options...
ShortBus Posted January 28, 2008 Report Share Posted January 28, 2008 My understanding is that utilization is an aggregate across all your revolving accounts? Am I wrong? Wouldn't BTs help out more than they do if it was per account?If you haven't made any payments on the furniture cards, then I'm guessing that you're not likely to before it's due, correct? I would definitely pay them off first, so long as you're making the minimum payments on the other cards. If you don't, you will be charged interest retroactively on the furniture accounts, which will really suck.I'd also recommend that you create a sustainable monthly budget to an attempt to get the other cards down. Hedging your debt with an anticipated tax refund is not the best thing to be doing. Link to comment Share on other sites More sharing options...
musiqdefunk Posted January 28, 2008 Author Report Share Posted January 28, 2008 thanks for the response guys this is what I will plan on doing.Furniture Card 2508.00/CL 3900 PAY 1008.00 Balance 1000.00Furniture Card 1535.87/CL 2000PAY 1535.87 (My wife doen't like any of their funiture so there will be no other use for it.... in closet it will go) Balance 0.00Credit Card 1700.00/CL 2000.00 Our credit limit will increase in February PAY 700.00Balance 1000.00Credit Card 400.00/CL 500.00 PAY 250.00Balance 150.00I will go ahead and be agrresive on my monthly payments- I am trying to buy a home around the June time frame which will give me some more months to pay these things off- unfortanetly I know I am going to use some of these again to pay for the cost of moving. But at least I will be in a home. Link to comment Share on other sites More sharing options...
-eventy-ix Posted January 29, 2008 Report Share Posted January 29, 2008 Sounds like you came up with a great plan! GL buying your house this summer! Link to comment Share on other sites More sharing options...
VeVe Posted January 29, 2008 Report Share Posted January 29, 2008 thanks for the response guys this is what I will plan on doing.Furniture Card 2508.00/CL 3900 PAY 1008.00 Balance 1000.001500 Link to comment Share on other sites More sharing options...
jq26 Posted January 29, 2008 Report Share Posted January 29, 2008 Great plan. One caveat- you have to check the remander of the balances on the furniture cards. Sometimes hidden in the "0% / 0 payment" deals is a clause that takes all of the accumulated (but unpaid) interest accrued during the promo and add it to your balance if even $1 of balance remains at the end of the promo term. My circuit city Chase "same as cash for 18 months" offer was like that. My monthly bill actually showed "deferred interest" accruing in a separate column, lurking there to be added if I didn't bring my balance to $0 by month 18. I know Best Buy plays this game as well. Just beware- because with the sizable purchase like yours, they culd slam you with a $500-$800 surprise. Link to comment Share on other sites More sharing options...
musiqdefunk Posted January 29, 2008 Author Report Share Posted January 29, 2008 you know I didn't think of that, I assumed I would only be accruing interest for the remainder of the balance. i might just have to pay both if that is the case- I'll let you guys know... Link to comment Share on other sites More sharing options...
jq26 Posted January 29, 2008 Report Share Posted January 29, 2008 I paid off my laptop before the 18th month, so the accrued promo interest disappeared. Bu it happened to my buddy who bought a $2500 TV. Best Buy whacked him for $600 because he owed $150 after the promo period ended. It is a huge back door profit maker for the banks underwriting these purchases. Keep us posted! Link to comment Share on other sites More sharing options...
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