Page 1 of 3 123 LastLast
Results 1 to 10 of 21

Thread: Credit Card and Overdraft

  1. #1
    Bronze Member Alice Rain's Avatar
    Join Date
    Jan 2014
    Location
    Western Cape
    Posts
    120
    Thanks
    0
    Thanked 14 Times in 8 Posts

    Credit Card and Overdraft

    It's me again! Is there any other way other - besides running away - than declaring myself insolvent to cancel my credit and overdraft?

    Thanx

    Alice - wish I was Alice in Wonderland, I could just go down the hole!

  2. #2
    Diamond Member AndyD's Avatar
    Join Date
    Jan 2010
    Location
    Cape Town
    Posts
    4,403
    Thanks
    513
    Thanked 854 Times in 687 Posts
    I don't understand what you mean when you say you want to 'cancel' your credit card and overdraft debt....

    Are your debts business or personal?

    Just out of interest how deep is the hole that you're in? How much do you owe as a multiple of your monthly earnings?

    Have you approached your creditors and requested restructuring of the repayments? Have you made any sort of deal with any of them.

    What kind of assets do you have and how long have you had the various debts?

    Have you already defaulted on the repayments or are you just anticipating that you won't be able to keep up the existng payment regeime much longer?

    What is it that's changed that now means you can't meet your commitments?
    _______________________________________________
    I am special and so is Vanash.
    _______________________________________________

  3. Thanks given for this post:

    flaker (26-Aug-14)

  4. #3
    Silver Member
    Join Date
    Aug 2014
    Location
    Johannesburg
    Posts
    310
    Thanks
    26
    Thanked 17 Times in 15 Posts
    Credit card and overdraft debt can't just be cancelled away. Do you have any source of income?

  5. #4
    Platinum Member
    Join Date
    Apr 2010
    Location
    KZN
    Posts
    1,587
    Thanks
    76
    Thanked 138 Times in 118 Posts
    This was going to be my next topic - overdraft and credit card limits.

    Alice you can approach the bank and setup a payment plan. There is one catch, minimum payment, you have to pay at least the interest amount every month. I am assuming you have had this problem for a while already? The bank monitors your account all the time and if there is no movement in the account for a period of time there they start getting nervous or if you are exceeding your limits.

  6. #5
    Bronze Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    195
    Thanks
    67
    Thanked 28 Times in 26 Posts
    Part of the reason banks go under is because people try to run away from their debt. The honorable thing to do is to go and see the bank, set up a payment plan and stop spending money you don't have. It may sound harsh, but learning how to properly deal with money is one of the best gifts you can give yourself.
    Sometimes the only transport available is a leap of faith

  7. Thanks given for this post:

    Odwa (06-Oct-14)

  8. #6
    Bronze Member Alice Rain's Avatar
    Join Date
    Jan 2014
    Location
    Western Cape
    Posts
    120
    Thanks
    0
    Thanked 14 Times in 8 Posts
    Hi AndyD and everyone else

    Thanks for the responses. I will go and see the bank manager and see what she says about a payment plan. I got the overdraft because the bank manager was trying to help me when I was locked out of my place of employment and that was around March 2013. The credit card I've had a bit longer, can't remember, maybe two years prior. The only other debt I have is the rent and my dstv of R27.00 pm.

    Besides my caravan that I live in I'm the only asset that I have!

    The reason I can't make my commitments, there's just been no work [transcription] however I'm waiting on another writing project which will be on-going and other than that making stuff and will post some pictures soon for orders.

    Until later, will keep you posted, thanks again everyone!

  9. #7
    Bronze Member Alice Rain's Avatar
    Join Date
    Jan 2014
    Location
    Western Cape
    Posts
    120
    Thanks
    0
    Thanked 14 Times in 8 Posts
    Hi All, an update! I went into the bank and phoned the credit card division and they've cancelled my credit card - yipppeeee! I don't know why they wouldn't do it months ago when I made enquiries but now it's done and I just have to pay a minimum amount each month. And I've now got work online and am writing articles for Africa so it's coming together finally! Thank God! And thanks for all the input.

  10. Thanks given for this post:

    Dave A (30-Aug-14)

  11. #8
    Diamond Member adrianh's Avatar
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    5,089
    Thanks
    336
    Thanked 808 Times in 642 Posts
    Alice, don't get freaked out about debt. 99% of companies including banks make a lot of noise and threaten you but they don't just f..k your life up overnight. Most of them have lots and lots of customers that owe them money and it is simply not viable to blacklist them all. If they were to do so then they would have no customers left and 99% of the people in the country would blacklisted.

    The best thing to do is to be open and honest and explain your situation to them. Remember, they want the money so it is not in their interest to entirely destroy your life. As long as you speak to them and pay a bit every month they will stay off your case.

    Don't let them intimidate you, the nignog on the other end of the line is paid to be a harda$$ so you shouldn't take their $h1t to heart.

    I speak from ongoing experience.

    I have a debt with Nedbank that I am repaying slowly. One of the "consultants" phoned me a couple of days ago and went off at me. She was very rude and threatened me with all sorts of action. I told her that I don't have enough money to cover the required payment and she got very abusive. She said that she was going to send the sheriff to get my furniture. (She doesn't have the power to do so) I put the phone down on her. She phoned me the following day and she was a lot more reasonable. We agreed that we wont be rude to one another and that I would pay as much as I can.

    Bottom line: Don't let them freak you out. They are paid to be harda$$es but at the end of the day they will take whatever they can get.
    Last edited by adrianh; 30-Aug-14 at 08:20 AM. Reason: stoopid tablet keyboard
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

  12. #9
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,979
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    As long as you keep chipping away at your debts, people tend to be fairly patient.

    The problem with credit card debt, of course, is the high interest rate. You really want to wipe that out as quickly as possible.
    The trouble with opportunity is it normally comes dressed up as work.

  13. Thanks given for this post:

    Chrisjan B (30-Aug-14)

  14. #10
    Full Member
    Join Date
    Feb 2010
    Location
    Pretoria
    Posts
    47
    Thanks
    6
    Thanked 11 Times in 9 Posts
    Quote Originally Posted by Dave A View Post
    As long as you keep chipping away at your debts, people tend to be fairly patient.

    The problem with credit card debt, of course, is the high interest rate. You really want to wipe that out as quickly as possible.
    Dave A, you are so right. Many times people do not look at the interest rate that they are charged and simply pay to pay. This is like driving your car and not understanding that your petrol consumption works in kms per litre.

    If you are in debt, here are some small tips (may or may not work for you depending on your situation):
    1. List all your accounts including the balance, settlement amount (if settlement discounts are allowed) and the interest rate. Also list the minimum payment amount expected.
    You now know exactly what you are in for.
    2. If you have any long term loans e.g. property, check if there is an opportunity to consolidate you accounts (some banks do this) or if you can borrow from the loan account as these normally have a lower interest rate and longer period to pay.
    Your intention here is not to create more liquid cash i.e. you dont want to consolidate or take out more money from your loan just so you have more money to spend at the end of the month. Your reasoning is to mimimise your interest and therefore your debt.
    3. Work out your payment plan for EVERYTHING. Pay those with the highest interest rate first or pay the most you can to these.
    If you consolidated, then no worries, simply now pay your loan account ALL the money to be able to reduce it again. If not, you want to get the highest interest charges taken care of first. This would be stuff such as: Microlending accounts; credit cards; personal loans; etc (normally in that order)
    4. Depending on how "bad" your situation is, also setup to pay more on your longer term loan (bond account) as a form of savings.
    You will be surprised at how much you gain by paying just R100 more on your long term loan account.

    Of course, the best advise and option #0 is, spend less than what you earn / your income is and save at least 10% of earnings.
    But bottom line - if you know that the small car gives you 15km per litre and the bigger one only 8kms per litre - which car will you drive around with?
    Which debt do you get rid of first...
    Last edited by reuphk; 21-Sep-14 at 10:52 PM. Reason: edit mistake

  15. Thank given for this post:

    Dave A (22-Sep-14), dellatjie (28-Oct-14)

Page 1 of 3 123 LastLast

Similar Threads

  1. I need to know this - about credit card!
    By jimmiemenon in forum Accounting Forum
    Replies: 6
    Last Post: 30-Jul-14, 01:03 PM
  2. credit card
    By murdock in forum Scam Alert Forum
    Replies: 16
    Last Post: 22-Nov-12, 09:31 AM
  3. Credit card VS Overdraft
    By regim in forum General Business Forum
    Replies: 2
    Last Post: 13-Apr-12, 09:19 AM
  4. want a credit card
    By murdock in forum General Chat Forum
    Replies: 3
    Last Post: 21-Jul-11, 03:13 PM
  5. SAA credit card.
    By Dave A in forum Business Finance Forum
    Replies: 3
    Last Post: 14-May-07, 10:57 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •