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| Thread ID: 126228 | 2012-08-15 00:00:00 | Consolidating Loans | lordnoddy (3645) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1294849 | 2012-08-15 04:08:00 | It's similar to what I do and fairly common, I have a floating mortgage as my only account and put my whole salary into it revolving credit style. I pay as much as possible by credit card each month which keeps the average balance of my mortgage lower, then pay the credit card of in full when due each month. It requires discipline as it's very easy to keep drawing against the mortgage but used properly means 0% interest on the credit card and a lower monthly interest bill on the mortgage. If you borrow money to pay off a credit card you need to be able to resist using it too much and building the balance back up. If that seems difficult maybe reduce the limit or get rid of it altogether in favour of a debit card. Using a credit card to buy things and then not paying it off in full each month is a very expensive form of loan, you would have been better off arranging a debit card, getting a personal loan for your trip, and loading the money onto it. I think even hire purchase is generally cheaper than credit card interest rates. I know people who seem to treat available credit as if it was cash, that's a really bad Idea. By having my main account as a mortgage It has the psyhcological effect on me of always seeing my financial situation as a debt, rather than the illusion created by having an account with money in it when actually you owe more than you have. |
dugimodo (138) | ||
| 1294850 | 2012-08-15 04:13:00 | . eatliver . com/i . php?n=9312" target="_blank">www . eatliver . com I like it! Thanks guys . I'm going to have a chat with ASB this weekend to decide what's best . I think I'm going to leave my Car 'as is' because I'd only save ~$80 . 00 (over 24 months) on the interest if I am to include it which is the same timeframe I have now . Going to definitely look at knocking off the Credit Card - sick of the interest hitting every month, makes me feel like I'm getting no where . @ Chill - mine is currently 19 . 95% as mentioned by WalOne earlier . I'm going to decrease the limit anyway once it's paid to ~$1500 - something more managable . Life lesson learnt - Saving > Borrowing! |
lordnoddy (3645) | ||
| 1294851 | 2012-08-15 04:19:00 | Why not move the debt to a low-interest card then? | Chilling_Silence (9) | ||
| 1294852 | 2012-08-15 11:53:00 | It may be worth noting that most banks are offering temporary, introductory rates of around 3-5% for 6 months or so for credit cards if you switch to them. The best tip anyone can give you for the future is NEVER to use your credit card for credit. Using it when you can pay the full balance each month is fine, but actually borrowing money should be avoided! I would suggest that anything you want to buy be saved for instead, and credit be reserved for emergencies if anything. Only once you can stay debt-free can you begin to move ahead financially, and the further ahead you get, the easier it becomes to remain debt-free. Once the debt is gone, the interest avoided can build your savings :) |
george12 (7) | ||
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