I am filling out the Coop Board Package and it has "Credit Card Debt" under Monthly Expenses and "Outstanding Credit Card Debt" under Liabilities. We always pay our credit cards in full every month (in fact, my wife and I have the automated payment set), so we don't have any credit card debt that we would pay interest on. But we use credit cards heavily to pay for pre-school, garage, and... [more]
I am filling out the Coop Board Package and it has "Credit Card Debt" under Monthly Expenses and "Outstanding Credit Card Debt" under Liabilities.
We always pay our credit cards in full every month (in fact, my wife and I have the automated payment set), so we don't have any credit card debt that we would pay interest on. But we use credit cards heavily to pay for pre-school, garage, and everything else, so our typical credit card balance (total) can be around 3-4K by the end of the typical payment cycle.
So would I put the estimated typical average monthly credit card balance under "Monthly Expenses" and put "N/A" for Outstanding Credit Card Debt under liabilities?
Trying to understand where they are talking about the credit card debt that has not been paid on time (i.e., that someone would carry from month to month and pay interest on).
Thanks
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Response by sippelmc
over 11 years ago
Posts: 142
Member since: Sep 2007
My read is they are looking for people who are carrying month to month, so those people who have 10k in debt and are paying it off on avg of 500 / mo would put 500 in the monthly expense and 10k in the liability. Not knowing anything else about the docs or you, if I were you I would likely put 0 for liabilities "Outstanding Credit Card Debt" and 0 in "Credit Card Debt" monthly expenses. Then I would break out the money value you use your card for on pre-school, garage, etc, and whatever else adds up to your 3-4k and bucket/label them accordingly in the monthly expenses.
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Response by LeoNYC
over 11 years ago
Posts: 3
Member since: Nov 2009
sippelmc: I see what you are saying. But in the "Expenses Monthly" section there is nothing on the pre-school, garage, etc. expenses. The only line items available are: Maintenance, Apartment Financing, Other Mortgages, RE Taxes, Bank Loans, Auto Loan, Credit Card. That's it. Hence this question.
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Response by crescent22
over 11 years ago
Posts: 953
Member since: Apr 2008
Put 0 for both. You have no credit card debt since you pay off the balance before incurring interest.
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Response by NYCMatt
over 11 years ago
Posts: 7523
Member since: May 2009
"Credit card debt" under monthly expenses is the fixed figure you pay each month for the sole purpose of paying down revolving debt. "Outstanding credit card debt" means the total balance of how much you owe.
In your case I'd put "0" in both columns.
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Response by Flutistic
over 11 years ago
Posts: 516
Member since: Apr 2007
Write in "Credit cards paid off in full every month." The long form credit report often shows a balance and this sentence clarifies your real situation.
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Response by FreebirdNYC
over 11 years ago
Posts: 337
Member since: Jun 2007
agreed - they are looking for your contractual financial debt obligations, not your monthly living expenses (e.g. no line for your cable bill or your seamlessweb orders)... the question is how much debt will they be competing with in a personal bankruptcy situation
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Response by iwhite1967
over 11 years ago
Posts: 12
Member since: Feb 2014
I agree. Say you pay off your credit cards in full and if they need more explanation or ask for more documentation, you can do so accordingly. If you were carrying large balances every month, your credit score would probably be horrible anyways and you wouldn't be pre-approved for a mortgage, etc.
My read is they are looking for people who are carrying month to month, so those people who have 10k in debt and are paying it off on avg of 500 / mo would put 500 in the monthly expense and 10k in the liability. Not knowing anything else about the docs or you, if I were you I would likely put 0 for liabilities "Outstanding Credit Card Debt" and 0 in "Credit Card Debt" monthly expenses. Then I would break out the money value you use your card for on pre-school, garage, etc, and whatever else adds up to your 3-4k and bucket/label them accordingly in the monthly expenses.
sippelmc: I see what you are saying. But in the "Expenses Monthly" section there is nothing on the pre-school, garage, etc. expenses. The only line items available are: Maintenance, Apartment Financing, Other Mortgages, RE Taxes, Bank Loans, Auto Loan, Credit Card. That's it. Hence this question.
Put 0 for both. You have no credit card debt since you pay off the balance before incurring interest.
"Credit card debt" under monthly expenses is the fixed figure you pay each month for the sole purpose of paying down revolving debt. "Outstanding credit card debt" means the total balance of how much you owe.
In your case I'd put "0" in both columns.
Write in "Credit cards paid off in full every month." The long form credit report often shows a balance and this sentence clarifies your real situation.
agreed - they are looking for your contractual financial debt obligations, not your monthly living expenses (e.g. no line for your cable bill or your seamlessweb orders)... the question is how much debt will they be competing with in a personal bankruptcy situation
I agree. Say you pay off your credit cards in full and if they need more explanation or ask for more documentation, you can do so accordingly. If you were carrying large balances every month, your credit score would probably be horrible anyways and you wouldn't be pre-approved for a mortgage, etc.