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View Full Version : Where to apply cash?


Iowe2much
12-09-2008, 11:24 AM
Hi, new here... hope someone can help with a decision.

We have about 6500 in cash. We were originally going to pay off our son's HS tuition payment (the monthy pmt is about $1100 to be paid off entirely in April). But we also have a $13000 BOA CC we need to pay down, which is over limit by about 400, plus we are late on our last payment.

So, would you pay off the tuition payment and be done with it, freeing up $1100 a month. Or we were thinking of paying 3500 on the tuition now and just pay the rest off the next few months.... and pay down the BOA CC by the other $3000 left, bringing us well below our credit limit, then whittling down the card from there.

Side note: BOA wants to put us on a program that will reduce our interest, but we are to make set payments every month for 5 years which will pay off the card (of course they say we cannot use the card either). But somehow this does not sound good to me, like it will really screw up our credit.

Hope that makes sense. If you need more info just ask. ..... Thanks.

willingtocope
12-09-2008, 11:40 AM
Well, your son's tuition isn't charging you interest. I would bet that BofA has rate jacked you for being over limit.

I'd use the extra cash to pay down BofA...and cut up the cards so you don't use them any more. Then make monthly payments on the tuition.

Iowe2much
12-09-2008, 11:57 AM
Yes, that was my thought also. Actually there is a interest charge on the tuition but not as much as BOA, which you are correct in saying they have jacked that up.

Recovering Attorney
12-17-2008, 02:08 PM
I'd avoid the 5 year plan.

I'd split the money , reserving some to pay BoA its pound of flesh over the next three months and paying the tuition. I'd start by paying the 400 overlimit + the minimum montly. BoA is suit-happy these days, you'll want to keep them at bay