Using a Credit card to pay off a loan!

[lholhos]

What are the costs for transferring money out of the CC?

Dnt know if it depends on the amount...But it shouldn't be that much will check it now..

[Fuzzbox]

FNB also offered me a R50k overdraft at 19% and I accepted it. I used it to pay off my ABSA CC and have now paid up the overdraft.

Makes sense to me to use debt of lower interest to pay off the ones with higher interest. Just make sure you pay off the debt and CLOSE the account.

At ABSA I get 11% overdraft rate.Fight with FNB for a better RATE.

[DrYes]

I leave this here.

A bank gives a nice big lollipop to suck on.As soon as you are finished with it,they take that same stick from the lollipop and hit you over the head with it.

[Beachless]

Dnt know if it depends on the amount...But it shouldn't be that much will check it now..

Just check it, some just charge a small fee for transfers but I've seen cases where they take a % value on cash withdrawals and transfers.
But I think that was a pre NCA thing.

[etwylite]

Hi OP..please answer my question as to whether you are saving into a 32 notice account on a monthly basis or if I misunderstood your post

[lholhos]

WTF?? You have a R30000 loan at 28% but you are also "saving" R800pm into a 32day notice account? is that what you are saying?

I'm currently saving R500..I took the loan beginning march original loan was R37000..got dome money out of my 32day notice..and I have payed R5000 towards this loan from this 32day notice..That's how I do things...always put something away no mater how small

[etwylite]

I'm currently saving R500..I took the loan beginning march original loan was R37000..got dome money out of my 32day notice..and I have payed R5000 towards this loan from this 32day notice..That's how I do things...always put something away no mater how small

Whilst I applaud your efforts at "saving". Financially it makes no sense whatsoever when you are earning probably 5%
on the notice amount. Any amount you put toward paying off your PL is effectively earning you 28% return tax free. Personally I agree with taking the lowest interest rate. Apply for the credit card, transfer the PL amount onto the CC. Pay the amount you would have paid on the PL into the credit card as well as redirecting the R500pm from your notice deposit to the credit card. If you have any amount still on notice, take it out and pay it into the credit card. If you need the money in an emergency it is still available from the credit card.

[lholhos]

If you got a good credit record & earn above 30k Nedbank will give you the same loan at 12.5%. Take the consolidated loan from Nedbank & pay FNB off.

FNB's PL rates are nothing short of robbery!

my credit is good, unfortunately I don't earn R30000

[lholhos]

Whilst I applaud your efforts at "saving". Financially it makes no sense whatsoever when you are earning probably 5%
on the notice amount. Any amount you put toward paying off your PL is effectively earning you 28% return tax free. Personally I agree with taking the lowest interest rate. Apply for the credit card, transfer the PL amount onto the CC. Pay the amount you would have paid on the PL into the credit card as well as redirecting the R500pm from your notice deposit to the credit card. If you have any amount still on notice, take it out and pay it into the credit card. If you need the money in an emergency it is still available from the credit card.

I hear you man, I think I will do that! But I don't like the idea of me not outing anything away

[etwylite]

But you are putting it away, just not in a separate account. AND you are "earning" more interest. its the smart thing to do. You are still saving that same R500pm, just in a better place that will earn you more effective return.

[VG008]

"Apply for a Gold Credit Card and have it delivered within 3 working days wherever you want. Additionally you can apply for a Balance Transfer and transfer your debt or personal loans into your credit card and only pay 9.9% for the first 9 months."

From FNB Website
https://www.fnb.co.za/credit-card/index.html

Edit: Only saw your comments regarding the 9.9% after I posted...

[Segg]

Clearing debt with debt, how are you going to pay off the credit card?

[lholhos]

My current credit card limit is R20000,R10000 in budget and 10grand and 10grand in straight, now I have been given R45500...I have a R30000 PL..and amotor finance of about 50grand balance, I'm resigning from my current employer,(leave days, medical aid savings, and pension fund will be payedout) im planing to use leave days and possible pension fund..I'm currently paying R1300 for my car instalment over 60months(1year 5months into the contract)and I will be able to comfortably pay R2500 towards my credit car monthly...and this means I can pay off my car in 1yr or so...

[grim]

My current credit card limit is R20000,R10000 in budget and 10grand and 10grand in straight, now I have been given R45500...I have a R30000 PL..and amotor finance of about 50grand balance, I'm resigning from my current employer,(leave days, medical aid savings, and pension fund will be payedout) im planing to use leave days and possible pension fund..I'm currently paying R1300 for my car instalment over 60months(1year 5months into the contract)and I will be able to comfortably pay R2500 towards my credit car monthly...and this means I can pay off my car in 1yr or so...

Don't touch your pension fund money!

SARS won't use lube with the tax on it.

[lholhos]

Don't SARS start taxing if your pension payout is more than R22500? Mine will be just under R24000 before tax...two year's worth, will only be getting my contributions