[USER]

Hi, I have a question. I have a discover cc debt of $2400 paying it gradually, and I have a finance car of 38k, 675/month for 60 months.

Total debt of $40k+. My fico score is 701 with high impact credit utilization.

How can I decrease my CU. And get out of debt early?

Thank you!

[Kristin]

You need to analyze your expenses and determine where your money is going….. Also need to look for additional income sources, a better paying job, or side hustles.

[Bekah]

Don’t pay off high interest credit card debt gradually. Pay it off completely asap.

[Johnny]

Without knowing details, one option to consider is selling your car which will get rid of most of the debt and a huge payment.

Buy a $10k car until you can get in a more stable financial position.

Too much house and car kill peoples’ finances early on!

[Mike]

Second job to knock out the high interest credit card debt and sell the car…

[Kyle]

Pay off the CC debt and make extra principal payments toward the vehicle.

Or sell the vehicle and buy used in cash.

[Sabrina]

Are you paying off the credit card gradually as a necessity or a choice? Because I would try to knock that out yesterday.

In order to decrease your credit utilization you need to either decrease your expenses on a credit card or increase your lines of credit.

If you have a 3000 dollar credit limit and you owe 2400, you have high credit utilization.

If you can increase the credit limit to 20,000 and still only owe 2400 then your credit utilization is much lower.

Idk how feasible it is to get an increase at a 700 credit score though.

[Rick]

Looks like delaying that car by just 4 months would have led to that CC being laid off. Priorities.

$2,400 is not a ton of money. Not a tiny amount but definitely not huge.

I would cut back on buying stuff for 6 months and put the $400 otherwise spent on stuff to the CC and be done with it.

Stuff or no CC debt? Priorities.

[Author]

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