I know you don't want to address this, but you really need to tell your husband about the debt so you both can tackle it together. It does not seem like you're able to pay for it entirely on your own. Your debt, is also his debt, so it would in the interest of both for him to be made aware.
Make sure you are making at least the minimum payments every month to keep your account in good standing and avoid a late charge and hit to your credit score. Missing a payment is MUCH worse than making the minimum payment. The minimum payment will be shown on the statement. It should only be $200 or so between the two accounts.
Above and beyond that, just start paying what you can. If the cards have different interest rates, prioritize the higher one.
The minimum payment is usually around 1% of the balance.... not the same as paying in full. Check your statements again. Do not miss a payment if at all possible. If you are late, make a payment today. The more missed payments and the later they are, the worse.
To be clear, you should also be looking at consolidating / refinancing. But those take time. Don't wait for a perfect solution... keep on top of these accounts now to the best of your ability.
I was very good about keeping up on the minimum payments until I started having to use my husbands credit line. He wanted to manage all our spending. So then I used his card and am paying that statement balance off in full, obviously. But that has left the other CCs basically untouched. Bad. I need to basically stop using his CC to be able to catch up on my others. The issue there is that I don't see how I do that. I already have an automatic payment set for July on that card, and it absolutely has to be paid.
I really think you are better off talking to your spouse about this and coming up with a plan together. There is no way out of this that isn't going to affect him too, unfortunately.
I can likely get a loan from my 401K that is paid back via deduction from my paycheck. The rate is 9.5% and does not affect my credit score. This seems like a decent solution? The amount off my paycheck is completely reasonable. And I don't plan on leaving my job any time soon.
If paying $700/month, you're looking an additional $16,000 in interest.
If you can get it down to 10% interest you'd only pay $3400 in interest.
Either way, best to tell your partner now as it is much easier to explain it up front and not when they start asking how $20,000-36,000 has gone missing.
I'd start by applying for a credit card with 0% APR on balance transfers. You'll pay a small 3-5% fee but then won't pay any interest for a time (can be up to like 24 months) and use that time to aggressively pay off the debt.
I can likely get a loan from my 401K that is paid back via deduction from my paycheck. The rate is 9.5% and does not affect my credit score. This seems like a decent solution? The amount off my paycheck is completely reasonable. And I don't plan on leaving my job any time soon.
How together are you and your partner? Married? life partners? Engaged? Holding on until something better comes along?
If you're married, you're committing financial infidelity by running up a lot of debt without including your partner in the problem. And you should be working together on the debt. So talk with them and make that plan.
Anything less than marriage, then it depends upon how you're running your finances. First, stop using his card. Second, get current on minimum payments ASAP. I think you should temporarily adjust your household financial contribution in order to make better progress on the cards.
What are you putting into retirement. You should STOP putting into retirement until at least you're current on the cards -- and by that I mean at least paying minimums and considered current by the cards. Further, I'd put no more than the maximum to earn a match until the cards are paid off in full.
A personal loan only slows the bleeding. It's like putting a rubber band around your wrist after cutting off a finger. It only slows the bleeding. You need a plan to attack those debts. Lookup snowball method and avalanche method, but those will only really help if you can find the money to pay down the debt.
I was very good about keeping up on the minimum payments until I started having to use my husbands credit line. He wanted to manage all our spending. So then I used his card and am paying that off in full, obviously. But that has left the other CCs basically untouched. Bad.
I am very much hiding this from him as I ashamed, obviously, but also because I want to fix the problem that I created on my own. I fear this will end our marriage. I probably deserve it. I am looking for a solution that I can handle on my own. I have the money, it is just about where it is being allocated (his credit line). Do I just tell him I don't want to use that card anymore?
I realize I know the solution would be to ask him for help, but I am very very afraid. It is so shameful and would ruin the life we've built together. I want to be able to pay these cards off without him knowing. If that is going to be impossible then so be it, but it will come at a horrible cost I fear.
I think with that amount of debt, there's a very real possibility that you won't qualify for a personal loan to consolidate it.
Don't let that be a roadblock to stop you from paying it off.
Decrease your expenses significantly (cut your budget down to the bare necessities) and increase your income - get a second job. The net between these two actions needs to be thrown 100% at your debt. Track your expenses against the bare-bones budget to ensure you're staying on track.
It also helps to sell whatever you can in your house and apply that money towards your debt.
This is easier to tackle when your partner knows about the situation, otherwise they'll be wondering why you don't want to eat out or why you're getting a second job and you'll end up lying about a lot more than just your finances.
Sure, it's always worth a shot. The worst they can say is no.
If you have a low credit score and/or high credit utilization, there is probably a low chance you will get approved for any amount.
You might also only get approved for a fraction of the total amount you owe.
I can likely get a loan from my 401K that is paid back via deduction from my paycheck. The rate is 9.5% and does not affect my credit score. This seems like a decent solution? The amount off my paycheck is completely reasonable. And I don't plan on leaving my job any time soon.
Don't mess with your 401k. There are tons of reasons not to do that, but one of the bigger reasons to not do it is because usually the balance of the loan is due if you become separated from the company.
Just buckle up, make the sacrifices, and dig yourself out of the mess.
I know you don't want to address this, but you really need to tell your husband about the debt so you both can tackle it together. It does not seem like you're able to pay for it entirely on your own. Your debt, is also his debt, so it would in the interest of both for him to be made aware.
Make sure you are making at least the minimum payments every month to keep your account in good standing and avoid a late charge and hit to your credit score. Missing a payment is MUCH worse than making the minimum payment. The minimum payment will be shown on the statement. It should only be $200 or so between the two accounts. Above and beyond that, just start paying what you can. If the cards have different interest rates, prioritize the higher one.
Combined they are more then I can afford on a monthly basis, which is why I have already fallen behind by a few months. I realize how serious this is.
The minimum payment is usually around 1% of the balance.... not the same as paying in full. Check your statements again. Do not miss a payment if at all possible. If you are late, make a payment today. The more missed payments and the later they are, the worse.
To be clear, you should also be looking at consolidating / refinancing. But those take time. Don't wait for a perfect solution... keep on top of these accounts now to the best of your ability.
I was very good about keeping up on the minimum payments until I started having to use my husbands credit line. He wanted to manage all our spending. So then I used his card and am paying that statement balance off in full, obviously. But that has left the other CCs basically untouched. Bad. I need to basically stop using his CC to be able to catch up on my others. The issue there is that I don't see how I do that. I already have an automatic payment set for July on that card, and it absolutely has to be paid.
I really think you are better off talking to your spouse about this and coming up with a plan together. There is no way out of this that isn't going to affect him too, unfortunately.
I can likely get a loan from my 401K that is paid back via deduction from my paycheck. The rate is 9.5% and does not affect my credit score. This seems like a decent solution? The amount off my paycheck is completely reasonable. And I don't plan on leaving my job any time soon.
How much is owed on each card and what is the interest rate of each card?
Total balance: $21,365.01 $13,807.78 on one $7,557.23 on the other both have a APR of 28.15, which is insanely high.
If paying $700/month, you're looking an additional $16,000 in interest. If you can get it down to 10% interest you'd only pay $3400 in interest. Either way, best to tell your partner now as it is much easier to explain it up front and not when they start asking how $20,000-36,000 has gone missing.
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I'd start by applying for a credit card with 0% APR on balance transfers. You'll pay a small 3-5% fee but then won't pay any interest for a time (can be up to like 24 months) and use that time to aggressively pay off the debt.
I can likely get a loan from my 401K that is paid back via deduction from my paycheck. The rate is 9.5% and does not affect my credit score. This seems like a decent solution? The amount off my paycheck is completely reasonable. And I don't plan on leaving my job any time soon.
How together are you and your partner? Married? life partners? Engaged? Holding on until something better comes along? If you're married, you're committing financial infidelity by running up a lot of debt without including your partner in the problem. And you should be working together on the debt. So talk with them and make that plan. Anything less than marriage, then it depends upon how you're running your finances. First, stop using his card. Second, get current on minimum payments ASAP. I think you should temporarily adjust your household financial contribution in order to make better progress on the cards. What are you putting into retirement. You should STOP putting into retirement until at least you're current on the cards -- and by that I mean at least paying minimums and considered current by the cards. Further, I'd put no more than the maximum to earn a match until the cards are paid off in full. A personal loan only slows the bleeding. It's like putting a rubber band around your wrist after cutting off a finger. It only slows the bleeding. You need a plan to attack those debts. Lookup snowball method and avalanche method, but those will only really help if you can find the money to pay down the debt.
I was very good about keeping up on the minimum payments until I started having to use my husbands credit line. He wanted to manage all our spending. So then I used his card and am paying that off in full, obviously. But that has left the other CCs basically untouched. Bad. I am very much hiding this from him as I ashamed, obviously, but also because I want to fix the problem that I created on my own. I fear this will end our marriage. I probably deserve it. I am looking for a solution that I can handle on my own. I have the money, it is just about where it is being allocated (his credit line). Do I just tell him I don't want to use that card anymore? I realize I know the solution would be to ask him for help, but I am very very afraid. It is so shameful and would ruin the life we've built together. I want to be able to pay these cards off without him knowing. If that is going to be impossible then so be it, but it will come at a horrible cost I fear.
I think with that amount of debt, there's a very real possibility that you won't qualify for a personal loan to consolidate it. Don't let that be a roadblock to stop you from paying it off. Decrease your expenses significantly (cut your budget down to the bare necessities) and increase your income - get a second job. The net between these two actions needs to be thrown 100% at your debt. Track your expenses against the bare-bones budget to ensure you're staying on track. It also helps to sell whatever you can in your house and apply that money towards your debt. This is easier to tackle when your partner knows about the situation, otherwise they'll be wondering why you don't want to eat out or why you're getting a second job and you'll end up lying about a lot more than just your finances.
Would it be even worth APPLYING for the personal loan?
Sure, it's always worth a shot. The worst they can say is no. If you have a low credit score and/or high credit utilization, there is probably a low chance you will get approved for any amount. You might also only get approved for a fraction of the total amount you owe.
My credit score isnt great right now, but my utilization is low.
I can likely get a loan from my 401K that is paid back via deduction from my paycheck. The rate is 9.5% and does not affect my credit score. This seems like a decent solution? The amount off my paycheck is completely reasonable. And I don't plan on leaving my job any time soon.
Don't mess with your 401k. There are tons of reasons not to do that, but one of the bigger reasons to not do it is because usually the balance of the loan is due if you become separated from the company. Just buckle up, make the sacrifices, and dig yourself out of the mess.