Hooray!!! Less than $400 (au) left to pay off on my credit card!

Just curious: how are all the rest of you (not just Oz folk) doing with your cards? I recall a few months ago, during a recession belt-tightening thread, a number of you said you hoped to wean yourselves off them altogether. Have any of you actually managed to?

we use only cards that have no annual fees and give some kind of reward

always nice to get something in return for your money

I have a killer monthly fee. It's staggering to see the big chunk taken out of what I pay in. Mugs' game, this credit business!

are you talking about interest on purchases?

we pay everything off every month, only way to make it work for in your favour

and then the rewards really are free stuff

some cards have annual fees, just to use the card, avoid those

Would like to assist you msolga, but I never buy on credit, only use Visa to pay anything on the spot from my account with a Credit Union.

I haven't made any new purchases for around a year. My only regular (monthly) deduction is my daily newspaper delivery. I'm paying in considerably more than that each month (& reducing my debt), but still getting slugged a hefty "interest/purchases" fee.

Very sensible, Dutchy!

Have you thought about balance transfers? I know you've reached the end of the line in payment, however, a lot of companies want your business, so they'll give you a low interest rate for a period of time. They charge a small amount to transfer, but if you ever get yourself in that "just in case" scenario you can excersise the credit card shuffle option and save yerself some $ on the ridiculous, scandalous interest fees.

Here's a link, it says Australia at the top so I figure it applies to you.

http://www.creditcards.com/balance-transfer.php

Thanks, Gala. I've never heard of balance transfers before . Will definitely give that link a read.

I'd suggest holding off on that if you plan on paying off that last $400 reasonably soon. Does your card have annual/monthly fees just for holding the card or only tied to purchases that aren't paid in full within the single billing cycle? There's no reason to have a fee-based card. There are many (VISA, Mastercard, possibly even American Express) cards that don't carry a fee unless you don't pay the balance in full each month. That would be the full balance, not the balance of the purchases made that month.

You can get rid of your Visa if you choose but one person I know decided to cancel all of his credit cards once he got them paid off. He was recently denied a loan because he doesn't have sufficient credit (low credit score for no credit). It's a balancing game. The best way to do it is to have a no-fee card that you use sparingly and then pay off in full at least two days prior to the due date.

And, CONGRATULATIONS! on getting your credit card nearly paid off. Well done, indeed!

A few years a go I had about $2000 credit card debt. At the time, I kept on receiving offers for a no interest card for up to a year. The transfer fee was about $75, but was well worth it considering it would be the only fee.

From what I can tell from the link I sent, it appears as if the free interest rates are long-gone, but you did mention your card has a high fee?

What is the interest rate on your card? May I ask?

Thank you, thank you, JPB! It's been a slow & tedious process, as I'm working casually now & don't have all that much extra cash to splash! I'm afraid I've always been rather a flibberty gibbet when it comes to finances in the past. So this is the new, sensible me. No choice, actually.

I agree. It's only a suggestion for her for the future.

msolga, how else can you learn than by being flibberty gibbet about finances? Sure some people may be more restrained with their money, but the reality is, you've done it, you've become more responsible about money matters.

Oh that seems something worth checking out, Gala! Thanks!

Just checked my annual interest rate (yes, ddjd, that's what I do have.) It's 18.550 p a. Visa's "standard" rate, according to the information I have here.

Thanks for that information, JPB. I will read all this a lot more carefully tomorrow. When I'm a little more alert.



Interesting.

You put that so nicely, Gala. But it's kinda true!

Hi Ms Olga! Congratulations!

My suggestions are pretty much like everyone else's -- a no-fee credit card, for emergencies only, if you are worried about amassing debt again.

Having said that, I use a rewards-style credit card all the time. I just make sure I have the cash already in my account to cover every purchase I make. The card gives me points to use at my grocery store. Our finances are pretty tight at the moment -- I can use my points to buy pretty much anything in the store. Often I buy long distance calling cards (which allowed me to drop a long distance plan from my phone bill). I'm saving $ every way I can. To make sure I don't go overboard with credit, I use Quicken to track my credit card purchases as I make them and deduct that total from my current bank balance so I always know that I can pay it off when the bill comes due.