Paying off debt

[R6_kid]

I just paid off my credit card. The limit was only $500 but it's been maxed probably for the last two years, hovering either over or very close to the $500 limit. The whole time I've had it I've made the minimum monthly payment and then usually transferred the money back into my main account after the due date :no:

Even on my measily student income, with a little bit of dedication - mainly not getting pissed or eating takeaways everyday for the last three weeks I've managed to pay it all off :2guns: Funnily enough, knowing that it's no longer a negative against my name feels better than owning anything I've ever bought with it (apart from a new helmet and some leathers!)

This all came about because I got turned down for a loan, and wanted to prove to myself that I was actually good for it despite the bank thinknig otherwise. I only wish that this had happpened a long time ago and that I'd been saving for the last two years rather than spending money when I didn't need to.

The next job is demolishing my overdraft, which will probably take two months if I go hard, then I will be debt free other than my student loan and what I owe my father.

That's my feel good story for the day :sunny:

[Naki Rat]

Congrat's on getting rid of your credit card debt - highest interest rated debt first is the smart way to go.
I guess you realise you've been stiffed for 20+% interest on that balance for the last couple of years and the shitty thing with credit cards is that you pay interest on the entire balance owing at due date unless you pay off the total amount :angry2:
Good time to be minimising debt. All power to your efforts :Punk:

[yungatart]

Good on you!
I remember how that feels....
The trick for you now, is to maintain that status!

[Headbanger]

The trick is to now go out and treat yourself to something sweeeeeeeeeeeeeeet to the amount of $500, just chuck it on the card.

hookers and blow usually does the trick.

[Mully]

The trick is to now go out and treat yourself to something sweeeeeeeeeeeeeeet to the amount of $500, just chuck it on the card.

hookers and blow usually does the trick.

+1

Yeah, chuck it on the card. It's like free money. You'd be a fool not to.

[R6_kid]

I guess you realise you've been stiffed for 20+% interest on that balance for the last couple of years
Yeah, I check my account via internet banking most days and it was getting annoying to see 63c (or whatever amount) of interest being added to the balance when I'd added $100 to it the night before - that $100 is now only worth $99.37 - that's REALLY annoying.


The trick is to now go out and treat yourself to something sweeeeeeeeeeeeeeet to the amount of $500, just chuck it on the card.

hookers and blow usually does the trick.


+1

Yeah, chuck it on the card. It's like free money. You'd be a fool not to.

Lol, I'm gonna keep it there for emergency purposes, the only thing I'll be putting on a loan anytime soon is probably a bike which I'll pay off at 3-4x the required repayments anyway, and my flying which will be interest free on student loan, but for a good purpose. Anything else is going to have to wait until I've saved up for it.

[Skunk]

I'm only paying close to $1000 a fortnight in interest. Fuck paying the balance as well. :laugh:

[crazyhorse]

Its good to hear people realise their worth. Having a credit card is one thing, and paying it off in full is another.

Well done. You will do well in the future with your new attitude. :clap:

[Stirts]

Well done G.


I'm gonna keep it there for emergency purposes.

The only good thing to do with credit cards

http://www.wpclipart.com/tools/scissors/scissors_2.png

[vindy500]

nice work R6, wanna do mine next :)

[R6_kid]

Well done G.


The only good thing to do with credit cards

http://www.wpclipart.com/tools/scissors/scissors_2.png

Haha, I'll only keep it until I've saved up $500, then it'll get the chop and be replaced with one of those fancy new debit cards.

[Stirts]

Haha, I'll only keep it until I've saved up $500, then it'll get the chop and be replaced with one of those fancy new debit cards.

Best you stay off Trademe, e-bay, Online Trading here, delete from your cell all the 0900 slap that arse then :D

[R6_kid]

delete from your cell all the 0900 slap that arse then :D

the only 0900 I have says it has a conflict with phonebook entry Tina "stirts". :love:

[Disco Dan]

I just paid off my credit card. The limit was only $500 but it's been maxed probably for the last two years, hovering either over or very close to the $500 limit.

Good on you. But hardly cause for celebration???

Try $50,000 within a year which is pretty much what I did a couple of years ago now. I now live 100% debt free, have a large disposable income and just go out buying toys! Something for you to look forward too once you have finished studying and join the workforce...

You are better off with a independent 'pre-pay' "credit" type card - like the Prezy Card or the Loaded card. You pop a few hundred on it at the post office or via internet transfer and viola - you have an emergency supply you can use anywhere a normal credit card can be used. That way you NEVER get into debt !

[Stirts]

the only 0900 I have says it has a conflict with phonebook entry Tina "stirts". :love:

:killingme My coffee? I lost it through my nostrils.

[XxKiTtiExX]

Congrats G-Wrath. :love:

[Rodney007]

good stuff mang,
promised my self not to get a credit card. hasnt stoped me from being in the poo financialy,

meh debt funds passion, passion funds happyness, so i like to think anyway

[Gremlin]

The only good thing to do with credit cards

http://www.wpclipart.com/tools/scissors/scissors_2.png
Not necessarily... If you are well disciplined, you have up to 30 days to pay the balance, and it can be handy depending on cash flows etc.

Also, EFTPOS can attract charges on each transaction (depending on bank account), which credit cards don't (surcharges could be coming tho, with those changes re VISA etc).

[Stirts]

Not necessarily... If you are well disciplined, you have up to 30 days to pay the balance, and it can be handy depending on cash flows etc.

I proven to myself time and time again that "well disciplined" when looking after my finances is an attribute that I do not possess. I best stick to the scissors.

[Gremlin]

I proven to myself time and time again that "well disciplined" when looking after my finances is an attribute that I do not possess. I best stick to the scissors.
Fair enough, better than getting yourself into trouble...

Oh, and the other handy thing, you get the cash backs/points whatever, with the credit card. Then, if you have something like a gold mastercard, book your flights on it etc, you get free travel insurance :sunny:

[R6_kid]

Good on you. But hardly cause for celebration???

Try $50,000 within a year which is pretty much what I did a couple of years ago now. I now live 100% debt free, have a large disposable income and just go out buying toys! Something for you to look forward too once you have finished studying and join the workforce...

You are better off with a independent 'pre-pay' "credit" type card - like the Prezy Card or the Loaded card. You pop a few hundred on it at the post office or via internet transfer and viola - you have an emergency supply you can use anywhere a normal credit card can be used. That way you NEVER get into debt !

I've been in debt since 2005 when I started studying at Uni. I took two years off with the idea of 'paying off all my debt' and all I managed was a GSXR1000K3 which I ended up selling to put my in the green. I still owe my old man a considerable amount. My income is usually less than $300/wk so being able to pay off debt and save is nice feeling. Just figured there might be other people out there in a similar position that could do with a little encouragement.

[vindy500]

Good on you. But hardly cause for celebration???

Try $50,000 within a year which is pretty much what I did a couple of years ago now. I now live 100% debt free, have a large disposable income and just go out buying toys! Something for you to look forward too once you have finished studying and join the workforce...

You are better off with a independent 'pre-pay' "credit" type card - like the Prezy Card or the Loaded card. You pop a few hundred on it at the post office or via internet transfer and viola - you have an emergency supply you can use anywhere a normal credit card can be used. That way you NEVER get into debt !

my debt was bigger than your debt.... gosh u sound like a 5 year old

[Mom]

Well done that man!

Want to take on a bit of mine :sunny:

Seriously though, good on you! It is a great feeling indeed.

[discotex]

I only wish that this had happpened a long time ago and that I'd been saving for the last two years rather than spending money when I didn't need to.

Think the whole world has been having those thoughts in the last year mate.

If you can keep yourself from using it a credit card with a zero balance is a better backup than cash on a debit card. Much better putting the cash into a high interest savings account (or a rolling 6 month term deposit that you can break to pay the credit card off in an emergency).

Big props to your for living within your means :2thumbsup

[gatch]

hookers and blow usually does the trick.


Lol, I'm gonna keep it there for emergency purposes

Emergency hookers and blow ?

[puddytat]

Good onya man !!

My advice to anyone is dont owe more than you own , 'cause it means THEY own you... youll never be truly free otherwise.

But thats damn hard in a system that can only operate on debt

[LBD]

Good on ya...Debt free today for living (Investment and home loans exempt) is the way to be, live within means

BTW why does Mortgage sound so much like mortuary and mortician...mortiti...mort ....undertaker?

[tri boy]

BTW why does Mortgage sound so much like mortuary and mortician...mortiti...mort ....undertaker?


Think it has something to do with early French translation of "death grip".
Quite appropriate really.

[Boob Johnson]

Think it has something to do with early French translation of "death grip".
Quite appropriate really.
Mort = Death
Gage = Hold

And that it is.

A standard table loan over 25/30 yrs will see the home owner paying roughly 3 times the original value. Given that houses in NZ historically double in value every 10 tears this obviously cancels out any capital gain. And let's not mention repairs/maitenance. :shutup:



ps: Well done R6 :niceone:

Cash is king

[BiK3RChiK]

Mort = Death
Gage = Hold

And that it is.

A standard table loan over 25/30 yrs will see the home owner paying roughly 3 times the original value. Given that houses in NZ historically double in value every 10 tears this obviously cancels out any capital gain. And let's not mention repairs/maitenance. :shutup:



ps: Well done R6 :niceone:

Cash is king

I was talking to my bank manager a few years back regarding mortgages and he showed me that you should never take a mortgage out for more than a 20 year period. The repayments are the same but the extra years is just interest! I saw it on the mortgage calculator otherwise I would have been skeptical.

Good on you R6Kid. It's a great feeling that..... And I agree with Stirts scissors idea!

[peasea]

Think it has something to do with early French translation of "death grip".
Quite appropriate really.

I think you're right, with Latin being the root of the word, 'mort' as in 'mortus' death/dead/fuckin' snuffed it etc.

[Ms Piggy]

I just paid off my credit card.

Well done! It's a HUGE relief eh!

[Indiana_Jones]

Credit cards look like fun!

I should get one!

-Indy

[Boob Johnson]

I was talking to my bank manager a few years back regarding mortgages and he showed me that you should never take a mortgage out for more than a 20 year period. The repayments are the same but the extra years is just interest! I saw it on the mortgage calculator otherwise I would have been skeptical.

Good on you R6Kid. It's a great feeling that..... And I agree with Stirts scissors idea!
Any table loan is heavily weighted to repaying the interest first, something like 95% from memory, give or take. The formula remains the same over any given period, but yes you will pay less of it if you borrow it for a shorter time frame.

[Morcs]

I reduced my credit card to $500 as its a nice manageable figure. I usually max it out and pay it off every few months lol.

I cleared 30k of debt last year. twas guuuuud.

[Macontour]

Good on you, try to keep it that way. I was really lucky in my first job having a supervisor who gave me heaps of really good financial advice. I didn't follow it all but he set me up well. I tracked him down last year and thanked him.

I paid my mortgage off in 7 years through hard work and not spending money if I could avoid it. I only own the house and not much else but I can now do as I want while many of my mates who earn lots more than me but waste their money are still bitching about how tough things are.

back in the late 80s when I was saving to go to the US, people were telling me how lucky I was to be able to "afford" 6 months off work. Luck had nothing to do with it; for more than two years I had a second job that took up Thurs and Fri nights and all day Saturday and I had no flash cars, stereos, clothes, pub every night and so on.

You have probably worked hard and made sacrifices to pay off that debt. Good on you
By the way, back in the 80s I had term investments paying ME 19% interest, mortgage rates were about 23%!!!!:shit::shit::shit: