Had a look through the wiki and got confused, so I thought I would ask here.
Was looking over the finances of the mother in law who is a pensioner
Noticed she had a 10k credit card and every month she had to pay $45 in fees while only being able to pay $25 out of her pension in paying it off.
Told her I would look for a new credit card, problem is I have no knowledge of credit cards myself.
She doesn't use any of those FF points or anything. Just want to help her get the costing down.
Thanks
Once you get those credit cards nothing is stopping you :)
45 in fees ? can u break the fees down ? or do you mean interest ? interest =/= fees, if its interest look at getting a balance transfer , but i dont know why any institution would give her 10k in the first place let alone again.
The actual interest per month is around $166 for 20% pa. I'm guessing is that $45 is minimum payment.
i thought most cards had a 2% min payment ? 45$ as min payment would mean the card would never get paid off and keep increasing just from interest, pretty sure that's illegal, i dont think op is giving us the full story here.
I'm sure the government mandates a minimum payment of 2% per month. This averages out to 24% over 12 months so should keep ahead of the interest payments of 20% pa.
Hmm.. That could be it, I would imagine she's not paying the minimum payment so she is getting charged Interest / fees.
I assume she got a 10k card when her partner was still alive…
I believe the card is a NAB Platinum
Which bank, and what sort of credit card is it? (Not if it is a Visa or Mastercard but the name of account from statement)
I'm not with her at the moment, I can find out but the card is a NAB Platinum if that helps
NAB charge a $9 late payment fee.
So you need to find out what the balance is, is the account past due, what the breakdown of the $45 is - how much is interest & is she actually being charged late fee.
You provided no reason as to what moving to a different card would provide.
Different card isn't going to make her save more.
On card transfer there is usually no interest period?
Why does she need a credit card for? Pay it off and close the account otherwise
Agree - if you are in the position to pay it off (and close it) do it, or if not, as others have suggested get in touch with the that particular institution for hardship (explain you have only discovered her liabilities/pensioner/etc.) and arrange a payment plan (card should/will be locked out).
Ive never heard of a credit card charging $45 a month in fees, thats $540 a year. Unless its a very expensive platinum type card. If she doesnt even use it, cancel it asap. Why does she need a credit card in the first place ? Once you determine how its going to be used, then you can see what card would best suit her needs.
It is a platinum card, she said she needs it for emergencies.. but What an emergency is to me might be different to her :/
Sounds like op needs a card with 0% balance tf for as long as he can. Then pay that debt down without incurring interest.
Check out finder.com or similar website, and look for cards with balance tf.
I'll check that out now, thanks
Sorry, I was on the phone and it's much harder to do this. But I'm on the comp now.
You've got a few options.
1) The citibank simplicity card
-no annual fee
-0% interest for 9 months
2) Amex essential card
-no annual fee
-0% interest for 12 months (but has 1% balance transfer fee)
3)Virgin No Annual fee card
-no annual fee
-0% interest for 18 months (but has 1% balance transfer fee)
Not guaranteed she will be able to apply one ofc, but if she can, this gives her a chance to pay off her debt.
I seriously doubt your mother in law can even get a balance transfer. Tell her to contact the financial hardship line with the provider and they will freeze the card and interest payments, (but she won't be able to use the card I believe) and they will just ask that she pays it off in full over a period of time. I am unsure of what happens afterwards.
You know nothing about credit cards but want to offer someone advice on credit cards.
Right. Makes perfect sense.
Now, I know nothing about brain surgery but I can afford you a great deal on a lobotomy if you let me do it this weekend.
You know the terminology lobotomy that's good enough, deal for me let's do it.
I'm going to have to charge you more now.
Apparently I'm more skilled than I initially thought.
Probably you were a specialist on your previous life…
Yup, I know nothing about Credit cards because we don't have any ourselves.
Her partner recently died, and he handled the finances, she came to us to ask for advice, on how to sort out these bills. I had a look over the incomings and out goings. and when it came to the credit card, I mentioned I dont know how they work.. so I would ask on one of the forums I visit, and here we are.
You need to look at what the actual balance outstanding on the card is. The minimum payment is usually very prominent (which sounds like the $45), but the full balance outstanding is not. The actual credit limit itself is not of much relevance.
Dont think she can afford the credit card without accumulating a huge debt (if not already). Really don't see how another bank will give her a new CC.
Step 1- cut up the card
Step 2- save money and spend that
Go to the bank and try to strike a deal and tear up the card. It is not in their interest for a customer to accumulate debt they can't afford.
Unfortunately you cant tell old people what to do. They never listen.
But there are plenty of FREE credit card options if the credit card is required for JUST IN CASE.
But is she can only afford $25/month she SHOULD NOT HAVE A CREDIT CARD AT ALL!
Whichever card she ends up getting, remember to get her to use one of the ozbargain referral links.
I don't understand. Nor do I understand how somebody who can only afford to pay $25 a month can get a 10k credit card..