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Over-the-limit credit cards

May 3rd, 2007 at 02:44 pm

I really like the idea of using the snowball method to knock down credit card debt but have been advised not to use it until I get my balances below the credit limit on cards. But, how do you do this when you have several cards (7-9)? With the exception of about three of the cards, the rest of them have relativly low balances (around $300-500). The others have balances slightly above $1000.

Do I just take one card at a time and pay enough on it to get it below the credit line and then move on to the next one? Or is there another way I can do this?

9 Responses to “Over-the-limit credit cards”

  1. Ima saver Says:

    No, I would stick to the snowball method. Pay everything you can on one card, the minimums on the others. When you get the first one paid off, take that payment and add it to the payment on the next card.

  2. disneysteve Says:

    Ima, I think the problem is there are added fees for being over the limit so it may make more sense (and save more money) to get each card under the limit and then snowball from there, highest rate to lowest rate.

  3. scfr Says:

    I was wondering the same thing as disneysteve.

    Spare change, do the CC companies charge you something extra for being over the limit?

  4. HouseHopeful Says:

    Scfr, I used to work for a cc company. They do charge over the limit fees, plus most credit cards make their minimum payment requirement to include the amount the account is over the credit limit.

    So even if you make the minimum, you really couldn't start the snowball until the accounts were under the limit because the min pays would be so large anyway. If you can't get every account under the limit at once, I'd focus on the smallest amount to get under the limit, then move to the next account and the next.

    Dave Ramsey always says to get accounts current before starting the snowball and I would guess that he would say get them under the limit as well.

  5. campfrugal Says:

    Have you thought about calling all the cc companies and asking them to lower or waive fees and interest. Maybe then, you can get them under control. Sometimes, it is just a phone call away. Yes, it can be time-consuming, but in the end, could also relieve a lot of stress and help you feel more in control.

  6. Ima saver Says:

    Sorry, I misunderstood. I didn't know cards had limits that low. Most of mine are $10,000 to $20,000 limits. Yes, get them under the limits first.

  7. moi aussi Says:

    Happy Birthday!!!

  8. Aleta Says:

    I also wish you a very HAPPY BIRTHDAY

  9. Aleta Says:

    When you say that you have some with 300. to 500. balances; are these over the credit limit as well? How many do you have over the credit limit and what are your monthly payments and interest rates. That information would help us so we could give you our opinions. Also, how much extra can you add to reduce your credit?

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