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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
1294839	2012-08-15 00:00:00	So I'm thinking about growing up in the Financial side of life and was wondering if anyone has any advice on the above topic . I have a Credit Card which took a little bit of a hiding in New York City and also a car on Finance ~ $9,000 . 00 outstanding . I'm banking with ASB who I've been with since I can remember (back in the day when I had a Bank Book and the password for the account was something silly like Mum's maiden name) and am considering going through them to consolidate however I'm open to finding cheaper alternatives . . . and . . . . GO!	lordnoddy (3645)
1294840	2012-08-15 00:22:00	You should carefully calculate the difference between staying with the arrangements you have versus consolidation. Some outfits promote consolidation, but charge inexperienced people way over the odds for the privilege. Saying that ASB is as good (or bad) as any of the big banks. Big thing is to pay back as fast as you can!	KarameaDave (15222)
1294841	2012-08-15 00:38:00	+1 for what Dave just said about checking and figuring out the difference between staying and consolidating payback wise ... but be prepared to see what other banks may be able to offer ... apparently some are "undercutting" other lenders just to get your business. And remember ... where banks are concerned, LOYALTY is NOT in their vocabulary ... shop around but stay with the main banks, most of them have calculators to work out loan & repayments, etc.	SP8's (9836)
1294842	2012-08-15 00:48:00	There's no real fix without knowing the extent of your debts and structure (terms, left to run, individual interest rates etc). At face value the principle of consolidation is good inasmuch as you end up with one payment usually less than the aggregate of individual payments. But beware the downsides. Your total interest may well extend past your current commitments. Your car loan may require an early payment penalty, so you may incur that as well, and end up paying more interest because you're refinancing the balance of the debt plus early payment penalty. Pay off the highest interest loans first - ASB Visa is currently a whopping 19.95%! Probably closely followed by your car lenders. I suggest you get hold of a financial adviser - a qualified person at your local Citizen's Advice Bureau should be able to help, and they do have accountants and lawyers in their pool of advisers. View the banks with suspicion. The days of the old community minded Auckland Savings Bank have long since gone. In its place is a capricious and predatory Aussie giant. You really need to sit down and analyse your requirements, and guard against the temptation for short term gain. PS just read Karamea Daves' "Big thing is to pay back as fast as you can!" and SP8's "LOYALTY is NOT in their vocabulary". Wise words from both! :thumbs:	WalOne (4202)
1294843	2012-08-15 00:49:00	Call around, I know a while ago that a few banks were offering their credit card at a very low interest rate if you change banks and that rate would be valid until the card was paid off. The other thing to consider is that credit card interest is about 18ish - 20ish %, personal loans have cheaper interest rates. ASB had a 'friends and family' package a few months ago and I changed banks to them cause my personal loan was at 17% and they offered 13%. Big saving in the long run!	tingle (6539)
1294844	2012-08-15 01:51:00	Yeah the likes of most consolidation loans I've seen are around 25-30% interest. My personal loan was at 18% with ASB, but had a Low-interest Mastercard for 11%. You an check the current status by going into ASB Fastnet, then on the left Apple For --> New Credit Card Click the button and it'll give you a comparison of all the credit cards they have, their fees, and their interest rates. What's your current interest rate?	Chilling_Silence (9)
1294845	2012-08-15 02:03:00	www.eatliver.com	CliveM (6007)
1294846	2012-08-15 02:33:00	I did something somewhat sneaky a couple of years ago with a personal loan and credit cards which worked well. I had a personal loan of lets say $15,000 and two credit cards with a limit of lets say $2,500 each and then lets say my income each month was $5,000. I maxed out both credit cards and used the funds to pay back my loan, getting rid of $5,000 worth of interest occurring debt. Then when I got paid each month, I would immediately pay off the credit cards in full leaving my credit balance as $0.00 but flat broke, I would then live off the cards until next pay day - rinse and repeat. So it didn't reduce the total amount of debt I paid back, but it reduced the amount of interest I paid back by several hundred dollars. There were pros and cons to this, pros - boosted up my credit rating up a bit as the payments were being made each month of fairly decent amounts. Cons, well you really have to watch yourself, the moment you can't fully clear those cards each month you are screwed.	Bozo (8540)
1294847	2012-08-15 02:39:00	I did something somewhat sneaky a couple of years ago with a personal loan and credit cards which worked well. I had a personal loan of lets say $15,000 and two credit cards with a limit of lets say $2,500 each and then lets say my income each month was $5,000. I maxed out both credit cards and used the funds to pay back my loan, getting rid of $5,000 worth of interest occurring debt. Then when I got paid each month, I would immediately pay off the credit cards in full leaving my credit balance as $0.00 but flat broke, I would then live off the cards until next pay day - rinse and repeat. So it didn't reduce the total amount of debt I paid back, but it reduced the amount of interest I paid back by several hundred dollars. There were pros and cons to this, pros - boosted up my credit rating up a bit as the payments were being made each month of fairly decent amounts. Cons, well you really have to watch yourself, the moment you can't fully clear those cards each month you are screwed. That system works well but as pointed out you really "MUST" pay off your CC in full by due date or you are screwed. Self discipline is essential.	CliveM (6007)
1294848	2012-08-15 02:50:00	Mmmm but it's an excellent method if you can nail it, and saves a *ton* in interest :D	Chilling_Silence (9)
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