good credit, lots of cards, lots of debt.

Submitted by Anonymous (not verified) on Thu, 01/31/2008 - 13:38

Ok, first of all I have excellent credit, never been behind, never late, never over the limit. I have lots of cards probably 2 dozen. I only use 2, the rest just sit in my drawer at home. I owe about 25 grand on the 2 I use (I don't really use then anymore just trying to pay them off) but they are not maxed out, they still continue to up my limits. I am trying to figure out what to do. I know it looks bad to have this much revolving debt but my interest rates are only 3.9 on both cards (I told you my credit was excellent) This is the only thing I owe (ie no house payment, no car payment). I have come into some money recently. would it be better for me to invest it and still pay $1000 a month (not the min. payment) until I get the credit cards payed off or just to pay off the credit cards first?

If you can get a return of more then 3.9%, then invest it until your rates are increased.

So long as your total credit limit is more then twice what you currently owe, your proportion of balances to limits ratio will remain below 50% and it will not negatively impact your credit.

Fri, 02/01/2008 - 05:07 Permalink

Invest your money if you pay off you may never get the chance again to save. your doing ok now paying so keep up the good work. should you run into a problem you can always pay them off later.

Mon, 02/04/2008 - 17:43 Permalink

True, always good to have a nest egg or something for a rainey day!

Mon, 02/04/2008 - 18:38 Permalink