Thread: Who's good at Math? - credit card calculations.

Just get a card with 0% balance transfer. anz have 16mths at the moment. Transfer all balances to that, make regular repayments for 16mths rinse and repeat if needed
I did this with a transfer from 1 card then back to original card 12 mths later. Log into your accounts and look for any offers. Its easy.

If you decide to stay with the cards and pay one off first and then the next until all are gone remember to pay more than the minimum payment on each of the other cards every 3 months or so. This will keep you in their better books. As you can find that if you just pay the minimum each month they put you in a higher risk category and jack up the rate figuring you cannot go anywhere else so they can charge you more. You are playing with a computer here so it does not need to be too much more just enough to register in the computer 'brain'.

If the interest rates are the same, it doesn't matter whether you pay off one first or all at the same time. If they have annual fees, pay off one first, the one with the fee due first.

Psychologically, pay them off one at a time. It's encouraging to see them fall one after the other.

As others have said, investigate if you can roll them all into a zero interest account. You may have to combine them into one credit card before you do this but look at the fees first.

It's a good feeling when they're gone.

I agree with the advice that has been said . If you can get one loan and pay off your cards , credit card interest is calculated on a daily basis , paying the minimum only prolongs your debt with credit cards . consolidate those debts and pay them off if you can , talk to your bank manager , most will give you good advice ,and try to help you , good luck Jim ..

Thanks for all the advice. As per my original post, I'm paying the off evenly at the moment at 5 1/2 times the minimum payment, so no issues there.

I'll see if I can find someone who is decent to deal with and roll them into one loan. The thought of having to fill out all that paperwork and jump through all their hoops makes me want to puke though...

If the credit accounts have an interest free period on purchases, the best way to keep interest charges down is to cycle as much money as you can through the accounts. Don't pay cash unless you absolutely can't avoid it. This goes for every bill that doesn't cost extra on credit, including car rego fees, insurance etc. When you have enough cash to purchase your goods, pay bills etc, put the cash straight into the lowest amount card account and use the card to pay the bill. Once you get a credit account to the point where you can pay it off every month it's essentially an interest free loan for the average balance. I haven't paid credit card interest in decades and my wife and I manage to control our spending accordingly.

Originally Posted by bacicat

Ok, looks like everyone is on the same page here apart from me. I might have to bite the bullet and go through all the crap they will want to get a loan.

Sooooo don't want to do that though, but you are all probably right...

You may still be right.


Since the introduction of tighter credit reporting rules earlier this year, banks will hold more details about the types of credit you hold, credit you apply for, the rates you pay and the total amount of credit you owe. Credit Reports are used for deciding wether to approve or decline your application, but also can be used to attract good borrowers by offering discounted interest rates. It is in your interest to keep your Credit Report as squeaky clean as possible, even if you are paying off debt and don't plan any more applications in the near future.


Applying for another loan while you still hold the credit cards, even though you can fully service the repayments and will sooner pay off the amount can be viewed as a red flag by future lenders. They may see the fact that you have (for example) one card with a $5000 limit, one with a $2000 limit, another with a $7500 limit and then applying for personal loan for $4000 as some kind of indicator of a borrower who is teetering on the verge of collapse (although you have met every repayment, pay above the minimum and only owe a total of eg $3500) with liabilities of $18,500.



Applying for a loan or a 0% honeymoon card could be attractive, but applications for finance can be time consuming and difficult particularly for self-employed or small business owners. You've got to weigh up wether the savings on interest would be outweighed by the costs of time and money in applying. Self-Employed or business owners might have to see their accountant to provide a statement of earnings to give the bank. If the total combined amounts you owe on the 3 cards are only a few thousand, the difference you would save by getting a lower interest Pers Loan would be outweighed by any application costs. Hook in and pay them off and close them as quick as you can.

Originally Posted by bee utey

If the credit accounts have an interest free period on purchases, the best way to keep interest charges down is to cycle as much money as you can through the accounts. Don't pay cash unless you absolutely can't avoid it. This goes for every bill that doesn't cost extra on credit, including car rego fees, insurance etc. When you have enough cash to purchase your goods, pay bills etc, put the cash straight into the lowest amount card account and use the card to pay the bill. Once you get a credit account to the point where you can pay it off every month it's essentially an interest free loan for the average balance. I haven't paid credit card interest in decades and my wife and I manage to control our spending accordingly.

I've thought about doing this and have friends that do it, and think it's the way to go. Maybe one day I can try it, but my record with credit cards is bad.... Not sure if I trust myself at the moment with another one, even when I have the capacity to pay it off in full each month.

I have about 7 months to go and I'll have them payed off, I'll let sleeping dogs lie for a while before I think of trying this.