Credit Card advice

[SauRoNZA]

Which one do you owe the least on? Does it happen to be the one with the highest interest rate?

How hard would it be to pay that card off entirely at the end of this month and then get rid of it completely?

Then focus your efforts on the other account remaining and get yourself to credit free as soon as possible.

Trying to resolve debt by making different debt is generally a bad idea, unless its utterly impossible to so otherwise.


In my opinion if you've got R10 000 worth of debt at retail stores the. You ARE a bad spender.

 

[AlmightyBender]

Which one do you owe the least on? Does it happen to be the one with the highest interest rate?

How hard would it be to pay that card off entirely at the end of this month and then get rid of it completely?

Then focus your efforts on the other account remaining and get yourself to credit free as soon as possible.

Trying to resolve debt by making different debt is generally a bad idea, unless its utterly impossible to so otherwise.


In my opinion if you've got R10 000 worth of debt at retail stores the. You ARE a bad spender.

I agree with this. The sum is not large so live like a beggar for a few months to kill this debt. With a credit card there will be a temptation to pay it off over a longer period, which will actually just cost you more. You should focus on one card at a time, starting with the one with the highest interest rate. Make a minimum payment on the other one and put as much into the high interest rate one as you can until it is gone. Then kill the other one in the same way.

I would also recommend you make the payment as early as you can after pay day as you minimize the time the principle loan attracts interest.

A credit card can be useful but you should only get one after this debt is paid off as you will get a better rate due to your new improved credit score...

Also you are not a bad spender, but rather a bad planner. But I suspect you have learned a lot from this. Well done for having the courage to ask the question in the first place.

 

[KeganFinder]

As a recent graduate i have just got my first salary job. Now I'm looking to get my credit worthiness up by getting a credit card. Thanks for all the previous info I will definitely be making sure that I keep debt to a mininum so that the monthly payments are affordable. I do have a few other questions.

1) For a better credit rating which would be better?
-Smaller payments over a longer period
-Larger payments over a short period
Naturally I would guess the first option as this indicates that you are happy for the interest to rack up but who knows what this corps want from us these days

2) Benefits such as e-bucks... would anyone know of credit facilities that really provide valuable benefits

 

[mak2000]

My 2 cents.

Find out if you are eligible for a CC from your bank but also consider an overdraft as the Overdraft rates are sometimes lower than the CC rates. Also, since your salary ends up the the overdraft account you might end up having a lower daily balance which in turn means lower number of days on which interest is calculated. You then dont have to keep moving the funds around from your salary account to the CC.

Also, if you pay off another account using the CC, I think it is considered as Cash withdrawal so the interest is charged from day 1 rather than the expected 55 days!


All of these might be small amounts but they all add up in the final tally unless you have a plan to pay off the amounts in 6 months.

Please do the research on each option, read through the terms as they change quiet often.

Good Luck !

 

[Freaksta]

As a recent graduate i have just got my first salary job. Now I'm looking to get my credit worthiness up by getting a credit card. Thanks for all the previous info I will definitely be making sure that I keep debt to a mininum so that the monthly payments are affordable. I do have a few other questions.

1) For a better credit rating which would be better?
-Smaller payments over a longer period
-Larger payments over a short period
Naturally I would guess the first option as this indicates that you are happy for the interest to rack up but who knows what this corps want from us these days

2) Benefits such as e-bucks... would anyone know of credit facilities that really provide valuable benefits

To get a credit record from my understanding you don't even need to pay interest. You can buy on CC use the free period normally till the end of the month and then pay the full balance off.

Same with store cards. Put some on your store card, pay it the next day. It all counts towards your rating!

 

[Gtx Gaming]

To get a credit record from my understanding you don't even need to pay interest. You can buy on CC use the free period normally till the end of the month and then pay the full balance off.

Same with store cards. Put some on your store card, pay it the next day. It all counts towards your rating!

yep i never pay any interest at all!!

actually I eft my monthly spend to my cc each month so my CC is in the green most of the time.

I have only been with fnb a few months and all ready they offering me some good rates if i want to use it.

I checked online they willing to offer me 16% interest on my CC and 11% interest on overdraft, did not take the offer because i don't need it atm.

When i started with fnb my CC was offered at 18% and overdraft at 21% !

I also opened 2 clothing accounts a while back , bought something of R200 on each account that i pay off over 12 months