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

 
 
msolga
 
Reply Thu 10 Sep, 2009 05:41 am
Very Happy

I have been really, really strong & have resisted buying anything (even shoes!) on credit, for months now .... Just been steadily paying off my debt, bit by bit ...

So now that I'm reaching the end, I have a question for Oz A2Kers. (Yes, another question. Sorry.)

I intend to ditch Visa when I pay off this debt. Their interest rates are truly exorbitant.

Can any of you suggest a more user-friendly card? I considered not having one at all, but I prefer to have access to credit "just in case". For emergencies, really.

Any recommendations, anyone?
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Type: Discussion • Score: 14 • Views: 6,236 • Replies: 68
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msolga
 
  1  
Reply Thu 10 Sep, 2009 05:46 am
@msolga,
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?
djjd62
 
  1  
Reply Thu 10 Sep, 2009 05:48 am
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
msolga
 
  1  
Reply Thu 10 Sep, 2009 05:50 am
@djjd62,
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!
djjd62
 
  1  
Reply Thu 10 Sep, 2009 05:53 am
@msolga,
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
Dutchy
 
  1  
Reply Thu 10 Sep, 2009 05:54 am
@msolga,
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.
msolga
 
  1  
Reply Thu 10 Sep, 2009 05:57 am
@djjd62,
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.
0 Replies
 
msolga
 
  1  
Reply Thu 10 Sep, 2009 05:58 am
@Dutchy,
Very sensible, Dutchy!
0 Replies
 
Gala
 
  1  
Reply Thu 10 Sep, 2009 06:04 am
@msolga,
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
msolga
 
  1  
Reply Thu 10 Sep, 2009 06:08 am
@Gala,
Thanks, Gala. I've never heard of balance transfers before . Will definitely give that link a read.
JPB
 
  1  
Reply Thu 10 Sep, 2009 06:11 am
@Gala,
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.
JPB
 
  1  
Reply Thu 10 Sep, 2009 06:12 am
@msolga,
And, CONGRATULATIONS! on getting your credit card nearly paid off. Well done, indeed!
Gala
 
  1  
Reply Thu 10 Sep, 2009 06:18 am
@msolga,
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?
msolga
 
  1  
Reply Thu 10 Sep, 2009 06:19 am
@JPB,
Thank you, thank you, JPB! Smile 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. Embarrassed So this is the new, sensible me. No choice, actually.
Gala
 
  1  
Reply Thu 10 Sep, 2009 06:20 am
@JPB,
I agree. It's only a suggestion for her for the future.
0 Replies
 
Gala
 
  1  
Reply Thu 10 Sep, 2009 06:23 am
@msolga,
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.
msolga
 
  1  
Reply Thu 10 Sep, 2009 06:23 am
@Gala,
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.
msolga
 
  1  
Reply Thu 10 Sep, 2009 06:27 am
@JPB,
Thanks for that information, JPB. I will read all this a lot more carefully tomorrow. When I'm a little more alert.

Quote:
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.


Interesting.
0 Replies
 
msolga
 
  1  
Reply Thu 10 Sep, 2009 06:28 am
@Gala,
Quote:
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.


You put that so nicely, Gala. But it's kinda true! Wink
Tai Chi
 
  1  
Reply Thu 10 Sep, 2009 07:01 am
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.
 

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