No. of Recommendations: 8
Thankfully I kept my well paying day job but owe about a third of what I take home.

So, when you say 'I owe about a third of what I take home' do you mean that your take home income is $212k/year (3 x $70.7k)? Or do you mean that your minimum payments of $1,633 (2% x $55.5k for cards + $523 for Lending Club) are 1/3 of your monthly take home? Trying to pay off $70.7k in debt on a $200k+ annual income may be able to employ different strategies than if your income is $80k or so.

Just to be clear - what you 'owe' is $70,700. The minimum cash flow you need to service that debt is $1,663/month. If you get caught up in thinking that the cash flow need is what you 'owe', rather than understanding that you actually 'owe' $70,700 - your thinking is based on a 'monthly payment' basis, which is probably part of why you have gotten yourself in debt trouble 3 times now.

Min payments are 2% of balance except lend club which is $523/month. I have 33 months left on a 36 month loan.
The citi card is also new. Disappointed I didn't get a higher credit line to transfer more but my cc utilization is high. I believe it is 60%.

Chase offered me the slate card for 0% interest for 15 months with a limit of 3k. Can also get a prosper loan for 10k at 10.99%.
Plan to go w slate, not sure if prosper will give much of a bang for my buck given how similar the interest rates are.

In your position, where you are just starting your paydown, aren't really sure how much you actually can commit to paying down debt each month, and already having committed to a large cash flow requirement of $523 for the Lending Club loan, I'm not so sure I would worry as much about the rate differential (or lack thereof) as I would about the cash flow. At 2% per month, the minimum payment on the $10,000 would be $200. Assuming a 36 month term on the Prosper loan, that minimum payment would be $327. You will have committed yourself to paying $850 on your Prosper & Lending Club loans, while still having to pay $910 in minimum payments on the remaining card balances, for a total of $1760/month - $127 more per month than you are currently paying.

Before taking on another large fixed rate loan, I would instead suggest that you make sure that you are able to commit the '$2500 - $3500 additional per month' that you say in a later post that you intend to pay. If you can actually pay an additional $2,500/month (for a total of $4,163 toward your debts each month), you will have the Chase card knocked off in less than 2 months. Because of the small difference in rates between the AMEX and the other Chase card (15.24% vs. 14.24%) I would then think about going after the other Chase card first, and knock it off in another 5 or 6 months, before starting on the AMEX. This would provide you a little breathing room on the minimum payments, in addition to providing you two cards that would be open for balance transfers.

At that point, if you still can't find someplace to transfer the Amex balance to at a low rate, I might suggest thinking about a Prosper loan in addition to the Lending Club loan.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.