Jump to content

Credit cards - 0% bal trans/ low interest
Please advice badly needed !!


  • Please log in to reply
13 replies to this topic

#1 k-ko

Posted 01 December 2012 - 10:15 PM

Hi all,
Im after some advice please. ive never had a credit card. My DH does and hes let it get out of control.

Im needing to know exactly what 0% balance transfer cc are and are they too good to be true?

Dhs fees are just eating away at any payments he makes so we're getting no where.... what do we do in this situation...

We could try for a low rate cc which will help out considerably, but im wondering if we should start afesh with a 0% balance transfer card so we can get back on track..

would love some advice as im clueless with cc but Im wanting to learn original.gif
thanks

#2 jayskette

Posted 01 December 2012 - 10:20 PM

First of all, DO NOT EVER transfer any debts into your name!

Secondly, DO NOT EVER go with one of those debt consolidation offers you see on late night TV!

Thirdly, cards are ONLY for the very disciplined, otherwise as soon as the honeymoon period end you are slugged with even more debt.

Canstar and Infochoice offer great articles.

http://www.debtfix.com.au/debt-management-...sfers-5-tips-2/

#3 k-ko

Posted 01 December 2012 - 10:25 PM

thanks Jayskettle, III jump on and have a read.
I have read terrible things about some debt consolidation offers, but im just wondering if there
is any hope with changing of cards etc.

thanks III have a look at your link!

#4 harryboy

Posted 01 December 2012 - 10:25 PM

Agree with PP - only good if you are very disciplined about paying off while the 0% applies.

#5 #YKG

Posted 01 December 2012 - 10:25 PM

TBH I would only ever do the 0% transfer IF I could 100% pay off the balance in full in the allotted time then I would cancel the card and get rid of it all together once paid in full. If I couldn't pay the balance off in full in the time frame I wouldn't do it and call the credit card company to work something out to try and get it down as much as possible. Keep in mind if your DH has made cash withdrawls from his current card that is not included in the 0% interest and will attract interest rates.

I agree with PP do not put it into your name, dont enter into the debt consilidate people as this if more often then not a debt 9 agreement which is the stage before declaring bankrupcy.

#6 jayskette

Posted 01 December 2012 - 10:37 PM

I might give you some examples.

In Uni I recklessly rang up $8000 debt. I had an excellent credit rating otherwise, so I went and got a 1% balance transfer offer for 12 months. I cut up the original and the offered credit cards and paid $1000 over 8 months, and went to the bank to cancel the cards when everything was repaid. The bank kept on asking whether I am sure I want to cancel lol, because I am their worst customer! I did not give them any more than the 1% interest.

The past 6 months were difficult for DH and I, DH was laid off and we had a wedding. We now have 4 credit cards altogether totalling $12K. He has no job while I am earning 70K. I just got a new contracting job that is $160K and I have asked the bank whether I will be eligible for a balance transfer. To do that, I will need to apply in my name (as DH has no income), apply for a gold card with a $15K limit (because credit balance you are transferring has to represent a maximum of 80-90% of the proposed credit limit). As I am now a contractor (aka self employed) I will also need further evidence that this income is sustainable for 12 months, and a guarantee from my employer. I will also be taking some burden of having a possible dent on my credit rating. The bank provisionally approved it, but in the end I decided against it and just pay off as much as I can on the 4 cards. Now that DH has a new job, we will be able to pay everything off in 3 months. Even though that was not "ideal" in the sense of % interest (the cards range from 15-25% interest pa!!) It was the best for us in the long run.

So... balance transfer may not be the best for you at all! It is just like applying for another credit card, and that may not be approved pending on how bad the situation is. You might be better off heavily monitoring DH's spending and just cut the card for example.

#7 LK1

Posted 02 December 2012 - 12:44 AM

The first thing that your DH can do, before applying for anything else, is call his current card, and ask for an interest rate reduction.
I have done it a few times "Hi there, I have been calling other banks about a 0% balance transfer, but was wondering if "X bank" could offer me a lower interest rate before I move lenders?"
I have done this with one bank and had them offer me a 0% balance transfer to another one of their cards, then a lower rate on that card. And they did it all for me, didn't have to change banks, apply for a new card, have a new check on my credit rating.
And he needs to cut that card up and you guys work out a budget.

#8 *lightning

Posted 02 December 2012 - 01:14 AM

You could look into cutting up the card and taking out a personal loan to pay it off. You would have set payments and no credit card.

#9 Guest_Sunnycat_*

Posted 02 December 2012 - 01:23 AM

If you're sh*t with money and think that you might redraw on the amount that you pay off, I would try and get a personal loan to pay it off.

I called the bank for one of my Cc (as wasn't eligible for a personal loan) and they put a 6 month interest free hold on one of my cards. Maybe this is an option for your DH?

#10 TheWanderer

Posted 02 December 2012 - 08:41 AM

Use these offers with caution.  I once used one tô get ahead of a debt I couldn't shift, but unless you understand the details of the fine print you could end up in a far worse situation down the track.

Understand exactly how the bank makes money from them and make sure you don't trigger any of these clauses. For example, many have funny rules about which blocks of money attract the 0% rate and which will attract the higher one. Often this is is explained in ways that seem quite benign but reality carry quite a punch.

With the card I used, it was explained that the promo rate only applied to the balance transfer and any subsequent purchases would be at about 22%. It also went on to say that any payments apply to the block of money with the lowest interest rate first.  On the surface this doesn't seem that important but it is actually critical.   Say I transfered 10k on to the new card at 0%, I then went to buy a shirt for $100 with that card... With the leftover credit limit. When I make a payment, I will not pay off the $100  (which will be at a high rate) until the 10k is paid off in full. So from almost day 1 I start paying a high interest rate, which puts me behind the 8 ball from the get go.

These products can work in your favour but understand exactly how the bank makes money on the product you go fo before you start using it.

Edited by TheWanderer, 02 December 2012 - 08:42 AM.


#11 Coffeegirl

Posted 02 December 2012 - 09:01 AM

QUOTE (*lightning @ 02/12/2012, 02:14 AM) <{POST_SNAPBACK}>
You could look into cutting up the card and taking out a personal loan to pay it off. You would have set payments and no credit card.


Unfortunately most of these loans are at pretty high interest rates themselves and the OP ,ay nit be better off.


We just did a combination of low interest cards and a re-mortgage to clear a lot of CC debt.

It stemmed back to our first mortgage on this house and the bank screwing up their figures to the tune of $25,000.  This was discovered on the day of settlement.    We ended up with them having to issue us a $25,000 CC to put the balance of our mortgage on.  It was nuts!

We also had two other cards and a store card.    We struggled along, paying off what we could when we could, but weren't getting anywhere.  So we transferred the other two cards onto a low balance card.  Cut ALL those cards up and paid it off within the interest free period.  The we started to attack the big one.

We had switched lenders by now to ANZ and the personal banker we had was fantastic.  She worked out that if we topped up our mortgage to cover the store card and the big CC, then paid those payments back into the mortgage on top of the regular mortgage payments, we would a) pay less interest over the period of the mortgage and pay it off 6 years earlier.  


TheWanderer is right.  There are lots of catches to the low balance rates, so make sure you read the fine print.

#12 k-ko

Posted 02 December 2012 - 09:34 AM

Thanks for the replies. and sharing your experiences. III go back over and have a better read again so I have more understanding.

DH is no longer using the cc, im now managing the money and he has a set amount each week in his savings account for his expenses. The cc are gone and we dont intend to use them again. So we will just basically be paying them off, there will be nothing brought on them or cash withdrawals.

If for example we got a 0% balance transfer cards for 12 months we could pay off a big chunk of the debt but after that 12 months I know the rates goes back up to 20ish%.

The other option as others have said is we take out a loan to cover the cc then just pay monthly repayments ..... still paying fairly high interest, but no late fees, interest on interest etc ....

Can someone please explain, if for example we transfer 18k onto a 0% balance card, in 12months pay off 10k.... with the 8k remaining - will we be charged just the monthly interest rate. When do late fees arise? Are they when you cant pay off the amount in full or dont pay off the monthly repayment?
Note: we wont be using the card for ANY purchases - JUST paying it off.

Thanks for explaining, ive read over the banks fees policies but I need it explained in laymans original.gif

Thanks again
k

#13 k-ko

Posted 02 December 2012 - 09:36 AM

I think asking for a lower rate is a good idea too!! thanks LK1

#14 MintyBiscuit

Posted 02 December 2012 - 09:55 AM

QUOTE (k-ko @ 02/12/2012, 10:34 AM) <{POST_SNAPBACK}>
Can someone please explain, if for example we transfer 18k onto a 0% balance card, in 12months pay off 10k.... with the 8k remaining - will we be charged just the monthly interest rate. When do late fees arise? Are they when you cant pay off the amount in full or dont pay off the monthly repayment?
Note: we wont be using the card for ANY purchases - JUST paying it off.

Thanks for explaining, ive read over the banks fees policies but I need it explained in laymans original.gif

Thanks again
k


It will depend on the bank, but all of the ones I've encountered don't charge late fees as long as you're always paying the minimum monthly repayment. Unless there is a clause saying you must pay the balance transfer amount in full by the end of the twelve months, it's very unlikely they would charge you late fees. Don't forget, the end of that 6-12 month 0% period is when the banks make their money, so they want you to take longer to repay, not less time.

We transferred my $15k card to a 1.9% for 12 months a while back, because we knew we'd be able to pay it off in that timeframe. At the time 0% cards were only available for six months, then back up to a 20% rate, and we couldn't do it in six months. Don't forget to factor in annual fees - a lot of these 0% cards have big annual fees, so while you save on interest you might end up breaking even depending on the amount of debt you have to repay.

Definitely approach your bank and say you've been shopping around, because you never know what they'll offer. Do your research on them first too - if your current card is a rewards scheme or something, they might have a lower interest, lower fee one available, and as with a PP they may offer to transfer you to that with an interest free period.





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Get your FREE Baby & Toddler ticket!

Get your free tickets to the Sydney The Essential Baby & Toddler Show for September 25-27! Register online for your free ticket now!

A solo birth, a wasp swarm and a forest fire: mum and baby's amazing story of survival

Desperate, out of petrol and low on food, a new mother lit a fire in the hope of attracting attention.

Boy found on swing died of hypothermia and dehydration, autopsy finds

The story was chilling and heartbreaking: a three-year-old boy was found dead in a Southern Maryland park, his mother pushing him on the swing.

Child's play and laughter help battle fatigue

Feeling fatigued? Uh-huh, thought as much. Join the queue.

Dad shares entertaining 'how to hold a baby' clip

For many new dads, their own child is the first baby they have ever held. So one dad has posted an instructive YouTube video titled "How to Hold a Baby".

The Australian baby with 100,000 Facebook fans

She may be only eight months old, but Egypt has already amassed more than 100,000 fans and received a letter from royalty - Hollywood royalty that is.

Public welcome outside church for Princess Charlotte's christening

Duke and Duchess of Cambridge have invited well-wishers to see Princess Charlotte outside church in Sandringham on day of her baptism.

Tongue tie: what you need to know

Tongue and lip tie can lead to many problems for babies - and their parents. Here are the signs of tongue tie and how it's treated.

My daughter is small but that doesn't matter

My daughter may be small, but it's my job as her parent to refocus back where it belongs - on who she is as a person

Wet wipes linked to rise in allergic reactions

The government has issued a health warning after a rise in allergic skin reactions has been linked to a preservative found in some wet wipes.

Gay couple in their 80s first to wed in Dallas after Supreme Court ruling

Love may have won, but it came with quite the wait.

William Tyrrell's family marks birthday with cake and renewed appeal

The family of missing boy William Tyrrell will mark his fourth birthday on Friday making a cake to share with friends and family as NSW police renewed their public appeal for information on his disappearance.

What all parents should know about safe babywearing

A picture of Ryan Reynolds always gets the girls talking, and a recently shared photo has done exactly that - but this time, it's for all the wrong reasons.

Baby's head shape reveals potentially fatal condition

Thinking her baby just had an unusually shaped head, a mother was shocked to discover it was instead linked to a dangerous condition.

'Help - my toddler hits me!'

My toddler has started hitting when he gets frustrated, is feeling ignored, or just thinks it might be fun.

Why IVF success rates may not be what you think

Transparency, accountability and responsibilityare essential measures to protect IVF vulnerable patients.

On the 10th anniversary of my son's death

This day marks a significant day. Today marks 10 years since I lost my son Kai.

Mother-in-law 'from hell' inspires survival guide

The happily ever after Nicola Milan had imagined wasn't to be – and she blames her mother-in-law.

Name your baby Quinoa, win a $10K gift card

Choosing a name for your little bundle of joy is always a major decision. It can be something traditional, trendy, creative … or inspired by the menu of your favourite chain restaurant.

Owning a pair of nail scissors does not make me a hairdresser

It's been a whole year since sleeping in until 10am. A whole year since having a peaceful shower.

The 83 children who were tragically let down in the last decade

Over a 10-year period, 83 children died from domestic violence abuse in NSW, with three quarters of the victims aged five years or under, the NSW Ombudsman has revealed.

Expert Q&A: Gross motor skill development in toddlers and preschoolers

Dr Katie Heathershaw answers questions about jumping, toe walking, riding a bike and being pigeon toed.

WIN A $500 VISA DEBIT CARD

Are you a parent, or are you planning to be? Tell us what you think and you'll go in the draw to win a $500 gift card!

Is it reasonable to expect your partner to give up drinking in pregnancy?

From the moment that I fell pregnant with my son, I realised just how much my life had already started to change.

Stroke victim joins class action against makers of popular contraceptive pill

"I was terrified I would always be this way. The pill needs to come with a much higher warning."

Sexy time

Why you should get excited about scheduling sex

Unfortunately, the belief that sex should always be spontaneous is a myth. It just isn't.

When newborn photoshoots get messy

When it comes to newborn photoshoots, it is all about the timing.

Orphaned baby daughter Ayla wakes from coma

Former All Black Jerry Collins' critically injured orphaned daughter has awoken from her coma and is able to bottle-feed.

Dad takes miraculous catch while feeding baby

One American father has taken multitasking to a new level at a Cubs-Dodgers baseball game at Wrigley Field.

'Samuel is our firstborn, and he will never be forgotten'

Having lost their firstborn at one day old, the Carrolls were overjoyed to welcome their daughter Isobel into the world a year later.

Channel 10's Sarah Harris expecting first child

The Studio host Sarah Harris doesn't mind if her first baby is a boy or girl, but she does hope it is born with one thing in particular.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

27 funny ultrasound pictures

Ultrasounds give you a look at your growing baby ... and sometimes what appears to their womb-buddy, or your bub in an amusing position.

The top 6 misleading parenting terms

From 'morning sickness' to 'the terrible twos', there are many parenting terms that are misleading.

When 'good' nannies go bad

While most nannies take pride in their work, there can be some who have a hidden side.

Woman hospitalised for skinny jeans injury

Beware: skinny jeans might be bad for your health.

Gauze seeding: the bacteria-breeding birth trend

A number of women having caesarean deliveries are now taking steps to give their baby a better 'microbiome' start in life.

Jimmy Fallon writes new children's book for dads

Jimmy Fallon, host of NBC's The Tonight Show, recently wrote a children's book about every father's secret wish for their baby's first word to be "dada" - not "mama".

28 names for babies born in winter

Looking for some baby name inspiration for a bub born during the colder months? Here are 28 options from around the world to consider.

The horrible act that sparked a brawl at child's birthday party

The uncle of the seven-year-old girl at the centre of the brawl at child's birthday party in Sydney's west has described the events leading up to the alarming show of violence.

Babies 'benefit from iPads at a young age': study

More often than not, you'll read that screen time for children should be kept to a minimum - but some scientists are now challenging this way of thinking.

Do mums really just obsessively talk about their children?

Natalie Reilly describes three main types of conversations mothers have. And, surprise, they're not all about kids.

Why some dogs might attack babies or young kids

A baby's smell, the noises it makes and even its gaze can contribute to the potential for a dog attack.

Mum demands refund for 'beargina' christening cake

It was meant to be a tasteful cake to help celebrate a three-year-old's christening.

5 things no one warns you about after giving birth

How many times have you been warned about all the sleepless nights you have to 'look forward to' when you become a parent?

Police officer sang nursery rhyme as heartbreaking photo was taken

A police officer arrived at a devastating scene on Thursday: a car crash resulting in all passengers being thrown from the vehicle.

Don't worry, working mums: Just leave Dad in charge at home

Want to open the boardroom doors for women? Encourage - heck, praise - dads who stay home with their children.

Hilaria Baldwin shares post-baby selfie

Just two days after giving birth, actor Alec Balwin's wife posted a post-baby picture on social media.

'Help - my child won't ever do what I ask!'

Compliance is part of the parent-child relationship, but so is resistance. It's all natural.

Postnatal depression support gets $23 million boost in NSW

The Baird government will include $22.8 million in Tuesday's NSW budget to expand a program designed to help parents at risk of postnatal depression (PND).

'I'm just as tired, scared and stressed as you': stay-at-home dad's plea

I'm really lucky to have two great kids, but I found it really tough with so much being aimed at the mothers and not the fathers.

 

Win $500

WIN A $500 VISA DEBIT CARD

Are you are parent or planning to be? We want to know what you think - let us know and you'll be in the draw to win a $500 gift card.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.