NDogg said:

<< Another suggestion is that you can balance transfer the MBNA and Citibank to your Fleet account (can you get a higher limit?) so that you would end up with only 3 credit card payments to make instead of 5 freeing up a little more money to help pay down that Juniper.

Lastly, have you tried calling Juniper to ask for a lower rate? 7 out of 10 times a company will lower your interest rate if you ask (don't remember where i saw this).

One more thing, don't close your accounts when you get them to zero balance. >>

Would it be wise to ask for a credit limit increase on my Fleet account considering that I've had the card for less than 6 mos. only?

Yes, I have called Juniper and asked for a lower rate. They said that nothing is available for me right now.

Also, I'm aware of keeping the account open even after the balance is 0$.

NDogg said:

<< Hmmm, not sure about that, didn't realize it was so new. I assume the the FirstUSA one is even newer then :7

How bout the MBNA or the Citi Card?

Do you happen to own a home? >>

Yes, FirstUSA and Fleet are the same age accounts.

MBNA and CitiCard are older accounts. I've already tried to ask for a lower rate, and that's all I could get.

And no, I do not own a home

EricGo said:

<< Rather than paying off the highest interest card first, pay off the lowest balance card first, with intent (and hope) of that card then being more receptive to a lower APR and higher credit limit for subsequent BT. >>

I don't like that idea, too much of a gamble. Basically, you're hoping that they will give you a lower APR/higher credit limit/BT.

And what if it doesnt turn out the way you intend it to be?

Then I've been just wasting my time paying the interest of the HIGH APR card

EricGo said:

<< Rather than paying off the highest interest card first, pay off the lowest balance card first, with intent (and hope) of that card then being more receptive to a lower APR and higher credit limit for subsequent BT. >>

That's what I recommended too. Getting ANY of these cards to a zero balance will give him more flexibility. I would use whatever balance transfer/credit limit increase I could to get one of these cards to zero. Any time I've paid off a card, I've gotten a phone call or mailer within days. You know the call: "We were wondering why you are making a large payment and wondering if there is anything we can do do sink you deeper in to debt..."

NDogg said:

<< Well IBJanky, it looks like you've exhausted all the current options you have at the moment, and it doesn't look like you can do much but to do what you're doing and stay disciplined with the spending for the time being. Looking at what you have now and considering all the comments by others, what I would do if I were in your situation would be to balance transfer the MBNA (your second highest rate) to your Fleet card. That would give you a 16% less APR on ~$1300 for 6 months and then 9% less APR thereafter, for a balance that you will not be able to pay off until your Juniper is paid off anyway. It would also give you one less minimum to pay, a credit card with 0 balance, and a credit card that isn't maxed out. Keep doing what you're doing and re-examine your position in 6months. Maybe you'll get a raise or something. Best of luck! >>

that sounds like the best option so far...

so its settled then? transfer the MBNA to the Fleet card?

WalStMonkey said:

<< Got a 401k with enough to take a loan and pay the balances? That's what I did way back in 1995. It didn't take long before the issuers offered much better terms and I'd borrowed the money back from them paid the 401k loan in full. There were no CRA issues with the 401k loan either. No inquiries, no reporting.

Stay tuned for alarmist warnings of inevitable dire consequences of taking a 401k loan. The reality is sometimes they can be used advantageously. >>

Unfortunately, I have no 401K

WalStMonkey said:

<< Got a 401k with enough to take a loan and pay the balances? That's what I did way back in 1995. It didn't take long before the issuers offered much better terms and I'd borrowed the money back from them paid the 401k loan in full. There were no CRA issues with the 401k loan either. No inquiries, no reporting.

Stay tuned for alarmist warnings of inevitable dire consequences of taking a 401k loan. The reality is sometimes they can be used advantageously. >>

I'm doing this very thing right now. Paying myself 5% interest is the best return I'm getting on it right now.

Wow, 7 minutes for the first warning, good call WSM.

so its settled then? transfer the MBNA to the Fleet card?

OK, I have never posted here, so this is my first time. I was in the same predicament a few years back and slowly crawled my way out of it and learned a few lucky things along the way. I will share them with you and you can decide whether to believe them or not.

I had three cards. Discover, MBNA and FirstUSA. The first thing I did, was I got lucky and focused on paying down the lowest balance card first. That was MBNA. Interestingly enough, within one month of having this paid off, MBNA sent me balance transfer checks with a low rate. Wow I thought this is cool. When you are as far in debt as you are (and I was) lets face it, every penny counts.

Play the balance transfer game as much as you can.

So here is the funny thing. I had even missed a few payments. I wnet from being one of MBNA's worst customers to one of their best overnight. I guess they were used to getting my money, because they wanted it back. The more I played the balance transfer rate, the better rates I got, and the more my credit limits climbed. Once card even gave me a $30K line of credit. These people are crazy. I still have the same job, still make the same money, still have the same inability to pay, but man oh man, like a crack dealer they are willing to feed the addict.

Not all companies offer teaser rates. But the operators should know whether they do or not, so this might be a good thing to know and might change the rules a little. But still the general principals and the outcome I get to below are the same.

It took me almost 3 years to pay off all my debt, so the first thing to remember is that this money you save in interest will add up over time. And its not just what you save on interest immediately that matters, but the interest on the interest over three years that you save...the power of compounded rates of return. (It works for you great in certificates of deposits but bites you just as hard in the opposite direction).

OK I am going to suggest one more thing. Most cards offer you a fixed limit on the transaction fee (so it pays to transfer as much as possible at one time)

Here goes. You can always (most of the time) get a cash advance from any of your cards. Usually at a little higher than the purchase rate, but the Juniper card you have at 19% is the highest rate already, to pay off another card at any time. Take a cash advance off of one card to pay off the card that gives you the balance transfer low rate. You will pay some upfront fees, u these are usually capped at $35 to $50 and with the amounts you are talking about they amount to very little overall cost.

Here is what I would do if I was in your situation:

1) Take a cash advance on the Juniper to pay off the Fleet ($35 upfront fee) (You will have $7910 on Juniper)
2) Call Fleet everyday and ask them what your balance is. (You are waiting to hear them say "0"
3) The day it is paid off, use the $6000 to pay off the MBNA, Citibank, ($3078) and then move $2922 from Juniper back to Fleet maxing out your $6000 credit line and leaving $4988 on Juniper
4) Wait a month (more like 45 days) and MBNA and Citibank will begin sending you balance transfer teaser rates. (You suddenly became a good customer as you paid your balance in full)
5) Use this $4200 in available credit to get the money off the Juniper, leaving you a balance of only $788 on Juniper which you should have been able to pay off in those 2 months.
6) You will then a month after the zero balance (interest only remaining to be paid) possibly see Juniper offer you a teaser rate.
7) Repeat these steps as necessary.

I did this and at one point calculated that I saved over $3500 during the two years in interest. My cards were all at 19.99% and 21.99% though, so your savings will be less. But $10K in debt at $20% is $2000 a year in interest. If you can lower that to the single digits for the 2-3 years it will take you to pay these off, you will get out at way ahead of time. A $3000 savings would be an extra 6 months you get your head above water and once you pay these things off, you need to celebrate your success a little.

Well I hope this helps. It worked for me. Nothing is better than being out of debt and knowing that all your money is going to you and not the credit card company.

grimjack said:

<<
Here is what I would do if I was in your situation:

1) Take a cash advance on the Juniper to pay off the Fleet ($35 upfront fee) (You will have $7910 on Juniper)
2) Call Fleet everyday and ask them what your balance is. (You are waiting to hear them say "0"
3) The day it is paid off, use the $6000 to pay off the MBNA, Citibank, ($3078) and then move $2922 from Juniper back to Fleet maxing out your $6000 credit line and leaving $4988 on Juniper
4) Wait a month (more like 45 days) and MBNA and Citibank will begin sending you balance transfer teaser rates. (You suddenly became a good customer as you paid your balance in full)
5) Use this $4200 in available credit to get the money off the Juniper, leaving you a balance of only $788 on Juniper which you should have been able to pay off in those 2 months.
6) You will then a month after the zero balance (interest only remaining to be paid) possibly see Juniper offer you a teaser rate.
7) Repeat these steps as necessary.
>>

Interesting method GrimJack, but the fact that Fleet charges me 3% of each BT check ($35 max) and the outrageous APR for cash advances makes me somewhat hesitant.