Tag Archives: Capital One

Helping a Friend get out of Credit Card Debt (Part 2)

Off Topic: I updated the Bluebird Bill Pay post and the Bluebird Add Funds post to reflect Bluebird’s new website layout.


Helping a Friend get out of Credit Card Debt (Part 2)

Warning: I am not a financial planner/adviser/consultant, so please proceed at your own risk.

Please read part 1 before reading this post.  The first thing you need to do is assess the current situation without judging or asking “what did you buy at XYZ for $430??”  There are a few key pieces of financial information that you will need to find out.  Such as:

  • Current balance plus all pending charges
  • Current interest rate
  • Total credit limit

After determining those figures for all of your friend’s credit cards, you can see the big picture.

Card Name Date Opened Balance Credit Line Interest Rate
Store-branded credit card Jan 2011 $2,800.00 $3,000.00 20%
Capital One credit card May 2012 $650.00 $1,500.00 18%
Chase Freedom credit card Nov 2013 $2,800.00 $3,000.00 0%
Bank Americard credit card Nov 2013 $2,200.00 $5,000.00 0%

The last 2 cards have 0% interest through December 2014, so he/she has more than 10 months of no interest on those balances.   Continue reading