Pay off line of Credit?

[Anonymous]

I am in need of financial advice.

I have a line of credit (owed 37K) that due to non payment on my end (misunderstanding) now has an interest rate of 12%. I found out about non payment in April and have since paid 14K to it so I now owe 23K.

I have no savings and I have only very minimal saved towards retirement. I had a very low paying job, went back to school and now finally at 40 have a good income. Bring home about 6K a month. Expenses are about 3K a month so have 3K left to put towards line of credit or savings. No credit card debt or other debt except mortgage.

I also have a second line of credit that I have never used (10K) that has a 7% interest rate on it. Should I max that out and put the 10K towards my higher interest line of credit?

Should I just put the full 3K towards the high interest line of credit until paid off?

[Anonymous]

Can you open a few credit cards with 0% interest for a year? The aggressively pay them off?

[Anonymous]

Anonymous wrote:Can you open a few credit cards with 0% interest for a year? The aggressively pay them off?

Like a balance transfer credit card? That's a good idea, I'll look into it. Not sure if I can transfer that large of a sun as I doubt my limit would be that high. I am sure the year of non payment has destroyed my credit rating.

[Anonymous]

Why have you take lines of credit that you don't need and aren't being responsible with?

[Anonymous]

Anonymous wrote:Why have you take lines of credit that you don't need and aren't being responsible with?

I don't. The one I owe on was part of my mortgage / home purchase. I had understand that the line of credit payment was rolled into my mortgage payment. Based on what I had been told I didn't realize that I had to pay the line of credit down separately.

The 10K line of credit that I have the bank I usually bank with just gave me. I have never activated it so it is just there and available. I don't know why they added it. Loyal long term customer?

[Anonymous]

I'd just pay the $3k a month to the line of credit and have it paid off in a year.

[Anonymous]

Anonymous wrote:I'd just pay the $3k a month to the line of credit and have it paid off in a year.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can you open a few credit cards with 0% interest for a year? The aggressively pay them off?

Like a balance transfer credit card? That's a good idea, I'll look into it. Not sure if I can transfer that large of a sun as I doubt my limit would be that high. I am sure the year of non payment has destroyed my credit rating.

I did this and it worked out really well. Good luck!