does anyone have a scary over limit credit card??

[jennababe]

havent been keeping up with payments lately.. theres just always something else that comes up.. and we always seem to have other bills due.. its around $600 over the limit at the moment.. its scary seeing how much interest and overdue fees and charges get put on top of it. i know we will get on top of it and i try to put money on it when ever we can, i just dont know what the best option is..

the best thing is to call them isnt it? and explain whats going on.

is it better to close it and then just pay off whats owing over time or does that still get interest aswell??

i wish i never got the thing!!!! and its bad.. they know how to suck you in when they send the letters of getting more money, we have upped in twice in the last year.. they really make it to easy to do.. and you always seem to get the letter when you could really use or want the money!!!:rolleyes:

i am good at paying my bills.. i dont neglect things. we are just going through a bit of a hard time. with lots of other bills in, a baby on the way.. theres always things that need paying.

[Anna07]

Dh took my card away.. but i am ok without - just hate asking Dh for money!

My friend was $3000 in debt on her card !!! Yep you read that right. She cut up her card and now is still paying it off. She allowed an amount to be deducted automatically from her savings account into her credit account every week from her pay. And once she got down to $2000 she rang them to reduce the limit so she won't use it.

Another friend is nearly in $10,000 in debt with her credit card - she kept getting sucked into the more limit everytime they sent her a letter that she had been approved for more - when they could easily see that she wasn't keeping up with previous payments ! the banks know exactly what they are doing.

[jennababe]

well ours isnt quite 10.

its around 6 grand at the moment. thats pretty much our biggest debt as we are only renting a house at the moment.

i never re spend the money that i put on the card, i cant actually even remember the last time its been under the limit so it wouldnt let me use the card for anything even if i tried.

at the moment we are not paying enough to get the figure down, its just helping to keep a bit of the interest and over due fees that are getting slapped on to it.

[LizzardLover]

the best thing is to call them isnt it? and explain whats going on.

Umm yes! Never just ignore late payments etc... make sure to always call even if you'll just be one day late. Trust me it will end up working out much better for you, this goes for all bills not just cc's.

If you speak to them they may be able to offer a suggestion to minimise how much it's costing you in extra fee's. The big question though is can you afford even the minimum monthly payments at the moment?

[jennababe]

Umm yes! Never just ignore late payments etc... make sure to always call even if you'll just be one day late. Trust me it will end up working out much better for you, this goes for all bills not just cc's.

If you speak to them they may be able to offer a suggestion to minimise how much it's costing you in extra fee's. The big question though is can you afford even the minimum monthly payments at the moment?

yeah we can minimum monthly payments are $138 a month. i think i need to stick to a better budget to make sure it gets payed. just at the moment it seems so hard to get in under the limit again.

we have had a big electricty bill in had to pay off a $500 layby for the baby, rent, food, petrol, broadband, radio rentals.. all our money seems to be gone on pay day lately.

i will call them on monday i think. i have just been to scared, and not being rude but i hate getting stuck on the phone to someone i can hardly understand while im trying to discuss my finances.

[LizzardLover]

i will call them on monday i think. i have just been to scared, and not being rude but i hate getting stuck on the phone to someone i can hardly understand while im trying to discuss my finances.

I tell phone people if I cant understand them well that i'm hard of hearing (only slightly true) and can I speak to someone without an accent. I figure they can just deal with it LOL!!

You might want to look into seeing a financial counsellor to help you with the budget and finances. You might be surprised at what they can suggest that will free up money for you :) I saw one a little while ago and was amazed at the things they could suggest. The best thing is that no matter how bad you think your situation is, they have seen worse LOL.

You can access them through most crisis centres (see centrelink) or salvation army etc offer them also. They work on a sliding fee scale or even free depending on your situation.

[onabreak]

I am in debt big time with my credit card and wish I had never got one.

Any way my bank ended up ringing me telling me I was $1000 in arrears and I needed to start making payments. So at the moment they have given me a payment plan and are very supportive if I can't make a payment.

You are better off ringing them an explaining your situation to them and they will understand and work something out for you.

[chicky2lala]

I have 2 credit cards, one i owe 6000 on the other $3000 but with all the interest i now owe over $13000...everytime i pay something off it it never seems to go down because of all the interest.

I just couldnt afford to keep paying it so i started ignoring the letters. 6 Months later I was being threatened with court so i eventualy rang the bank up and explained, they put me through to the debt collection agency who said I could pay $50 a week for basically the rest of my life lol.

So thats what im doing. If id have just gone to the bank in the first place they could prob have helped me out without 6 months of added interest and $25 per letter they sent out!!!

[HarvestMoon]

If you have a high interest rate on your card it may be worth calling your bank and asking to have it switched over to a low rate one. You will save heaps of money on interest this way.
I'm not too sure if they will do it while your over the limit though but once your under most banks will do it for you. Some will even offer 0% for 6 months and things like that.. just depends on who you are with.

[Me]

I was $1700 overdrawn on one card up until today. I just went and put a bit of money on there and some extra to pay a few bits and pieces - that way I can turn over the interest free period. Plus the banks prefer to see the money "turned over" iykwim rather than just sitting there, plus it helps keep down overdue fees and interest(if you have an interest free period). That said, i know it's not always possible.

Best thing is to call them. Always better than having them call you. Best of luck with it, you're not alone. Things will improve, they just need time.

[jennababe]

thats for all the replies.

i think im with the worst one GE:no:

ill call monday and see what happens. i guess i shouldnt be scared of it i just need to explain to them and see what happens, im sure im not the only person with an over the limit credit card they would hear it all the time.

[Me]

:fingerscrossed: for monday.

GE can be nasty with their fees and high interest rates. Maybe you could even just ask them if they can do interest free for 6 mths to help you catch up(and by then you might even have your baby bonus to help pay some extra off if you need to).

Shoot for the stars - if you miss you'll land in the clouds!

[Jax Tellers Old Lady]

Sorry to hear that you are having troubles. Can I just ask how a card can be overdrawn when there is a limtit?? Is that the way the banks work to gain more money from you??

I hope you can find a solution soon:hugs:

[jennababe]

Sorry to hear that you are having troubles. Can I just ask how a card can be overdrawn when there is a limtit?? Is that the way the banks work to gain more money from you??

I hope you can find a solution soon:hugs:

most credit cards let you go over the limit, they dont care they want you to spend the money, then if im late on my payments they add the overdue fees and interest on top and it just builds from there, so any money i have been putting on there is only keeping it at around the same figure at the moment it never actually goes down..

should be able to put $250 on it the next fortnight.. thats a start i guess.

[jennababe]

:fingerscrossed: for monday.

GE can be nasty with their fees and high interest rates. Maybe you could even just ask them if they can do interest free for 6 mths to help you catch up(and by then you might even have your baby bonus to help pay some extra off if you need to).

Shoot for the stars - if you miss you'll land in the clouds!

thanks.. i dont know what calling them will do really. and i have heared that GE are the worst!! i have never heared of places letting you have interest free times, they dont want to help me catch up on payments, thats not part of there money making plan lol.. they want people to be up sh!t creek!!:p i guess the best i can do is just to let them know that i am having a hard time paying it at the moment.

i know its my own fault for upping it.. but they made it was to easy. i got this credit card when i was working about 3 years ago, and then have since upped it a few times. when they sent the letters and i called them i wasnt working at the time.. they didnt even ask. they make it so easy to get money. its bad really.. and no wonder why so many people end up in bad debt.

my sister has a 3 grand credit card that got cancelled cos she didnt pay the payments, im just not sure how it works, does it freeze at that ammount, or they just shut the card but keep slamming on interest aswell??

[~Candy~]

I don't have a cc because i know I'd be in trouble...lol, however, hubby has one and he's soooo good at paying it off.....Well, my car (we have a car each), just cost me $3500 for major service, rego & tyres all at once...I didn't expect it to cost THAT much (I pay for my car with my tax return usually), so I needed to use hubby's cc. Now I got to pay it back...Yikes!, sooo glad I don't have one of my own or I'd be in debt for life ..eek!

[Funkychicken]

The ANZ bank have a great offer that we have just taken up. If you transfer a balance from another institutions card over to one of theirs, the interest is set at 2.9 % for the balance amount for twelve months.

We have been steadily paying off a card for a few months (we had cleared it and then DH got a $4500 mechanics bill for his car!:eek:) but the interest really sh!ts me. We have switched over the balance and plan to clear it (again!) in under 12 months with a lot less interest payable.

The 2.9 % only applies to a transferred balance though, so any purchases made on the card will be hit with the usual interest rate.

Worth looking into to reduce interest on existing cards! :yes:

[MissSookyLaLa]

The ANZ bank have a great offer that we have just taken up. If you transfer a balance from another institutions card over to one of theirs, the interest is set at 2.9 % for the balance amount for twelve months.

We have been steadily paying off a card for a few months (we had cleared it and then DH got a $4500 mechanics bill for his car!:eek:) but the interest really sh!ts me. We have switched over the balance and plan to clear it (again!) in under 12 months with a lot less interest payable.

The 2.9 % only applies to a transferred balance though, so any purchases made on the card will be hit with the usual interest rate.

Worth looking into to reduce interest on existing cards! :yes:

i agree!!!

Transfer your debt over to a plan like this and then cut up the card and start paying it off!

and in the future, once this card is payed off get yourself a debit credit card so you cant spend money you dont have...

and i would re-assess your other bills at the moment (radio rentals etc etc) assess what you actually need and get rid of what you dont, and put that money towards your card debt

I'll tell you how we have things set up...

we have a credit card with 30 days interest free on everything...we have a direct debit set up so that once a month the card debits our savings account for the purchases we made the previous month- so we dont pay ANY interest EVER!!!

good luck getting your debts down! I would definitely look into the anz deal, or go to a family finance assistance place...

[jennababe]

i will definately look into the ANZ card. it sounds good.:thumbsup: thanks girls.

[gabETandme]

Hi,

If you are struggling to make your payments you should either try to transfer it over to a lower interest rate if you have the ability to do this. But make sure that the card you had is closed so many people transfer their cards and then keep the old one open again and get into even more dept.

If you are unable to do this then RING THEM. There is nothing to be affraid of ask about going on Hardship because you are struggling to make payments. Most of the times the interest is reduced or stopped for a period of time. And commit to making a payment so say you use to pay $150pm commit to paying $50per month but actually pay the $150 you were paying so you get it paid off quicker before the interest comes back on.

Then Budget dont buy the good stuff Check out catalogues before you go grocery shopping. I have the opinion if I dont have the money in the bank then dont buy it. Or Laybuy which gives you the opportunity to pay it off and you get it when its paid for.

I hope you are able to sort it out as soon as possible. The biggest problem with credit cards is most people ignore the lettters and calls when they could actually help you.

All the bEST

[Bexta]

Mine is close to the limit. I owe over $10,000 :eek:.

Is it hard to transfer over to a low interest one such as ANZ?

It's on my to do list, but I'm sooooo embarrassed!!! :o

[jennababe]

Mine is close to the limit. I owe over $10,000 :eek:.

Is it hard to transfer over to a low interest one such as ANZ?

It's on my to do list, but I'm sooooo embarrassed!!! :o

yes i really want to look into it aswell. but dont know what the terms and conditions would be, or how hard it is to go through them. anyone been through them? is it a hard or easy process? and do you have to be a full time worker? or do they accept people on centrelink aswell?

[albertknowles]

i would like to suggest that go for full payment at once and ask for some discount and close it.

[~CupCakes~]

i'd suggest trying for a personal loan to payout and close the credit card! i work for one of the big banks and they are all for you reducing your debt and any person in customer service( for any bank) worth their weight will def try to help you with this. the interest rates are lower than credit cards and you have a set payment and so forth to stick to!

[garfield13]

i'd suggest trying for a personal loan to payout and close the credit card! i work for one of the big banks and they are all for you reducing your debt and any person in customer service( for any bank) worth their weight will def try to help you with this. the interest rates are lower than credit cards and you have a set payment and so forth to stick to!

:iagree: This is what I was goign to suggest. I had 2 credit card years ago and between not needing them in the first place and those stupid increase letters, it ended up around $4500 and was only making the min payments are realised they were going nowhere and feeling sick everytime i got a statement and realised the interest i was paying. So I got a personal loan and got rid of them.
You are going to pay the interest in the loan, but its worth it to get those credit cards GONE! and not have that stress. I still remember going in to pay the larger one off and the relief was great, just to have them gone. I had the personal loan direct debited each month and after a while it wasn't noticed. If you have a little bit extra every now and again you can put that on there too and pay it of sooner if you want. I really think if I hadn't of done this they would probably still be hanging around and the extra stress they would have caused me as well.

[Beckybug]

I have one that has $4000 on it, but I have only used about $2500 so far.

DH had one with the same limit as well, but his got out of control very quick, ended up getting over-drawn with the fees and charges, then he got slugged with over-drawn fees and the vicious cycle began. He rang up and made an agreement, but with less work than we thought we'd get he fell behind. He rang the bank the other day and was put though the the Hardship people and they have frozen all interest and charges for 3 months and DH must pay at least $60 a month, but he's going to try to get more off it than that. If you are upfront and honest about what's going on, they will usually try to help you.............. unless its GE DH just said!

[musicalmummy]

The ANZ bank have a great offer that we have just taken up. If you transfer a balance from another institutions card over to one of theirs, the interest is set at 2.9 % for the balance amount for twelve months.

We have been steadily paying off a card for a few months (we had cleared it and then DH got a $4500 mechanics bill for his car!:eek:) but the interest really sh!ts me. We have switched over the balance and plan to clear it (again!) in under 12 months with a lot less interest payable.

The 2.9 % only applies to a transferred balance though, so any purchases made on the card will be hit with the usual interest rate.

Worth looking into to reduce interest on existing cards! :yes:


we tried this as we are with a 19% interest rate curently. we kept getting knocked back and the amount we owed was only $3000 and we have a good credit rating.

good luck.
I hate credit cards, but love them for the convenience...like if we can't afford petrol or something then i put it on there :( then have no money to put back onto it, but at least i got my petrol;)

[musicalmummy]

just gotta say thanks for this thread!!I rang my own bank and asked if i could swap to a lower interst rate card and i can :smiliedance:, and the annual fee only goes up by $20 :yelclap:

i so so so wished i;d thought of that before rather than applying for cards with other banks and getting knocked back

[bronny-jane]

oh i feel your pain... we owe GE $5000:yes:.. just from mindless spending..and we owe $5500 on another...
we already have a personal loan with a bank, so we are going to get our cards topped up, cancel GE, and maybe even put our car loan into it as well...

i prefer to go the loan track,,once we tried to roll over our credit, they gave us even more... then we went to the bank... so were going the bank route again... :yes:

[Chickadee]

i wish i never got the thing!!!! and its bad.. they know how to suck you in when they send the letters of getting more money, we have upped in twice in the last year.. they really make it to easy to do.. and you always seem to get the letter when you could really use or want the money!!!:rolleyes:.
Once you find a solution to your current debt, remember to keep a pair of scissors with you when you open bank letters and cut up those offers! You are better off keeping a low credit limit that you know you can pay off in only a few months and building up a separate savings account to be ready for emergencies.

[IrishMum2040]

My least fav. topic in the world since I have had my son is $$$. It seems so hard to make ends meet. I know I should budget etc etc. But everything I read is so high and mighty. We bought a book the other day by CHOICE....Recession Proof your Finances. Easy to read and not all about deprivation! It has great tips about what I can do to save money. Shopping at markets rather than grocery stores is my fav. Going to try the fruit and veg market in Flemington this weekend.

[GabberQueeN83]

yep... we are in big debt with the over 20,000 :no:

it got out of control when i got really sick and family wouldn't help out so the only way to keep on top of bills was to get into alot of credit catd debit.

[FiveInTheBed]

you can apply for hardship with GE. or consolidate your card and other loans into one.

you can visit cannex.com.au to compare cc and personal loan rates to find the best one.

CC are evil!!! we have one..but the balance is paid every month (mainly there for Direct payments with insurance and other bills) -

if you get a personal loan, then at least the temptation to spend what you have already 'paid off' isn't there.

best of luck

[IndigoJ]

I have close to 4000 on my credit card, buts it was all 'needed' stuff, plane tickets for my BFF and her unborn baby's funeral ($1500), Vet bills for our very sick doggie, (close to $1000), furniture for our house ($1500). I am supposed to pay $100 a month, but i pay $200 per month.