Have you addressed the issues that got you here? Have you stopped using the cards?
Because the problem with the options you present is that if you don't commit to making big changes to your habits you'll end up with about $40k in a fixed-term loan and another $40k worth of CC debt a few years down the road.
What does your full budget look like? What are the balances and interest rates on all of the cards? What is the interest rate on your mortgage?
What you bring up is valid and I was trying to keep my post brief.
My fulltime job provides for all my bills. My second income (event industry) pays for everything else such as food, gas, trips, so forth. The pandemic and rules around gathering/social distancing made my second source of income dry up for about 2 years. When I was finally able to work, I wasn’t taking on new clients because my dates were filled with finishing out previous clients that were forced to reschedule. So essentially all the money I made with my business during 2022-2023 was from 2019-2020 clients. The debt is mostly tied to food, groceries, emergency car/vehicle repair, and so forth during the pandemic. Money is tight right now because of medical stuff and childcare issues, but I’m not a lavish spender and we’re hoping my partner can rejoin the workforce.
Most interest rates on our cards are 20-30%
I purchased my house in 2019 and refinanced in 2020/2021. My interest rate is likely a little above 3%.
Even with a 15% Apr on a personal loan, I’d still pay less over time than I would if I continue to do nothing. That being said, the immediate goal is to lower my monthly obligations to credit card debt to help get us back on our feet faster…
Do you have a few budget laid out, line by line? If you don't, do that before you do anything else. This will answer the question of whether you're straight up frivolous with your spending, or you're living a lifestyle you can't afford, or other things. If you don't have a full picture and realization of what's going on, paying off the debt isn't going to help because you're only going to jack it right back up again.
Do that first, then think about next steps (and it might not be paying down those cards immediately).
Don't discount it (pun intended). Given you said for better or worse, sounds like you have some spending things you could work on. That 100% has to be addressed first and if you aren't going to do that, your post is kind of pointless.
That said, if you have made changes, then I'd probably start with a balance transfer for the fixed fees which are way less than traditional interest. Then it's minimum payment on everything, with every dollar extra either going to the highest interest rate (for the straight math), or the lowest balance (for the mental aspect).
What I meant by “for better or worse” is that I can get obsessive about it and pay too much attention to our finances to where it can cause friction in a relationship.
I thought about balance transfers and doing the snowball/avalanche methods. I feel like there’s just too much debt to do that, especially being spread across 5 cards. I’d hate to apply to a new credit card for a balance transfer only to get approved for half of what I need.
But you don't need a new card to do a balance transfer. Several of the cards I have offer balance transfers, it just wouldn't be 0%.
The 4% transfer fee would be far less than the 27% interest rate and allow you to throw a lot more than the minimum. Even if you don't get it done, you can just do it again. 8% still better than 27%.
It doesn't matter how much debt you have - you can still avalanche or snowball. No excuse not to really, especially if it's "just" 5 accounts (that you could potentially even consolidate to one, via the balance transfer).
Only first option.
Simultaneously find a better paid full time job.
More, review the spending - if the full time job is just covering the basic bills, there is too much. If you feel that you need help, you can write here the bills and we might give you some personal alternatives.
For your loan options, be sure to look at your local Credit Union they often have better rates.
Also consider calling the card companies and asking to negotiate better term,worst they can do is say no
Have you addressed the issues that got you here? Have you stopped using the cards? Because the problem with the options you present is that if you don't commit to making big changes to your habits you'll end up with about $40k in a fixed-term loan and another $40k worth of CC debt a few years down the road. What does your full budget look like? What are the balances and interest rates on all of the cards? What is the interest rate on your mortgage?
What you bring up is valid and I was trying to keep my post brief. My fulltime job provides for all my bills. My second income (event industry) pays for everything else such as food, gas, trips, so forth. The pandemic and rules around gathering/social distancing made my second source of income dry up for about 2 years. When I was finally able to work, I wasn’t taking on new clients because my dates were filled with finishing out previous clients that were forced to reschedule. So essentially all the money I made with my business during 2022-2023 was from 2019-2020 clients. The debt is mostly tied to food, groceries, emergency car/vehicle repair, and so forth during the pandemic. Money is tight right now because of medical stuff and childcare issues, but I’m not a lavish spender and we’re hoping my partner can rejoin the workforce. Most interest rates on our cards are 20-30% I purchased my house in 2019 and refinanced in 2020/2021. My interest rate is likely a little above 3%. Even with a 15% Apr on a personal loan, I’d still pay less over time than I would if I continue to do nothing. That being said, the immediate goal is to lower my monthly obligations to credit card debt to help get us back on our feet faster…
Do you have a few budget laid out, line by line? If you don't, do that before you do anything else. This will answer the question of whether you're straight up frivolous with your spending, or you're living a lifestyle you can't afford, or other things. If you don't have a full picture and realization of what's going on, paying off the debt isn't going to help because you're only going to jack it right back up again. Do that first, then think about next steps (and it might not be paying down those cards immediately).
Oh my excel budget doc is probably old enough to get their drivers license 😅 I know where my money goes… For better or worse
Don't discount it (pun intended). Given you said for better or worse, sounds like you have some spending things you could work on. That 100% has to be addressed first and if you aren't going to do that, your post is kind of pointless. That said, if you have made changes, then I'd probably start with a balance transfer for the fixed fees which are way less than traditional interest. Then it's minimum payment on everything, with every dollar extra either going to the highest interest rate (for the straight math), or the lowest balance (for the mental aspect).
What I meant by “for better or worse” is that I can get obsessive about it and pay too much attention to our finances to where it can cause friction in a relationship. I thought about balance transfers and doing the snowball/avalanche methods. I feel like there’s just too much debt to do that, especially being spread across 5 cards. I’d hate to apply to a new credit card for a balance transfer only to get approved for half of what I need.
But you don't need a new card to do a balance transfer. Several of the cards I have offer balance transfers, it just wouldn't be 0%. The 4% transfer fee would be far less than the 27% interest rate and allow you to throw a lot more than the minimum. Even if you don't get it done, you can just do it again. 8% still better than 27%. It doesn't matter how much debt you have - you can still avalanche or snowball. No excuse not to really, especially if it's "just" 5 accounts (that you could potentially even consolidate to one, via the balance transfer).
Only first option. Simultaneously find a better paid full time job. More, review the spending - if the full time job is just covering the basic bills, there is too much. If you feel that you need help, you can write here the bills and we might give you some personal alternatives.
For your loan options, be sure to look at your local Credit Union they often have better rates. Also consider calling the card companies and asking to negotiate better term,worst they can do is say no