interest on credit card

[murdock]

i have just received my latest credit card statement and busy working out the settlement and i noticed how i pay my budget account.

all my budget installment are calculated monthly and interest is charged...i dont have a problem with this...must be pretty normal

here the thing i have just noticed...i get charged interest on my budget facitly then the amount is deducted from my straight account...i didnt have a problem with this until i noticed that i am being charged interest on the total amount including the budget deducted amount...now because i got behind with my minimum payment i am now paying interest on the accumatling amounts...

standard bank are not interested in my problems and are not prepared to assist me in any way they dont even bother responding to any secure messages etc...just charge me for every little default which makes me laugh how it works with the latest technology a payment the night before if done after 7 pm is not included in your balance the following day...i have just been nailed another R115 and my vehicle payment reversed again because i went over my limit by R80...it sad for me and what a bonus for them another R115 for nothing...i wish i could rip my customers off like this...talk a bout a get rich quick scheme...i would love to see the amount of money standard bank is making just on this R115 from all the customers they are nailing...this is easier money than the lotto during these difficult times.

when you start going downhill boy you fall fast...i feel for all those other people out there in the same position i have been in these last couple months and hope they manage to get lucky and have a bail out plan...all my problems will be sorted out in the next day or 2 and i will be completely debt free again and have some spare money to buy some new equipment for my bussines to help reduce the tax i am gona have to pay...maybe even buy a new superbike as a delivery bike...i am busy making arragement to move to a bank which will offer me that personal attention...i might pay a little more in fees but at least i know the bank manager personally so hopefully i will get better service.

lets hope i can stay out of debt for a while so i dont have to go through all this cr*p again.

one thing i never do is get into more debt than i have assets to settle for example my bond is half the value of my property...all my equipment office stuff etc in my bussiness is all paid for and one of my vehicles is paid off and the other...the hp is less than the market value...in other words if things had got really bad i could have sold everything and still walked away with money in the bank...i cant say the same for other people...maybe take this as a tip and try not spend more than you can settle...i listen to people talking and hear how the banks have them by the neck...squeezing every little cent out of them they can get...and they have nowhere to go other than liquidations debt management etc...the rich get richer and the middle and lower class just pay

[Dave A]

Really chuffed to hear you're almost there, Murdock. There is no better feeling, I reckon.

Picking up on the credit card interest - it's a killer all right.

I was reading the fine print on one card a bit more attentively than usual the other day. If you don't pay the settlement balance by due date, interest charges are calculated from day 1. So much for "up to 55 days free credit." That only applies if you settle the full balance

[murdock]

thanks dave...hopefully when i wake up tomorrow morning it will be like i won the lotto just that i had to work hard for it

now the trick is to spend it wisely...making it was the easy part...what i do with it will determine how my finances either grow or collapse again.

[murdock]

i woke up this morning checked my bank account and man it feels like i have won the lotto...this is the first time in 18 years of bussiness i have ever had a 5 digit figue in my bank account...and in the positive i wish i could invite everyone out for a drink tonight

i think i am gona surprise my wife and take her out for dinner.

[Dave A]

[daveob]

[Marq]

i think i am gona surprise my wife and take her out for dinner.

Take cash.

[murdock]

i spent an hour or 2 in the bank yesterday trying to figue out what went wrong.

the easiest way to explain it is...when the sun shines the bank offer you an umbrella with tassles...a cocktail...sun tan lotion...a gazebo...just in case you need to get out the sun but when it starts raining best you run for cover.

they rate you 1-9...if you have a 9 rating the bank manager deals with your account if there are any queries.....if you are rated lower than 4 best you look for a different bank because you are regarded as a high risk and the bank are not interested in your problems just taking all the money they can get out of you while they can.

you are rated over a 6 month cycle...so if you are curious to know where you stand with the bank just ask what your rating is.

my rating is less than 4...thats why i cant even get a bussiness banker form westville standard bank to return my calls...i have to go to the bank and request his attention...someone i spoke to who has been banking at westville branch for 20 years was also sitting waiting to speak to the banker said and i quote " it is ever since the bank has become politically correct"

[daveob]

back to the age old story - to the bank you're just a number ( in your case, below 4 ).

Just keep it in your mind the fact that, when that business banker smiles and nods, it's not anything to do with what you are telling him or asking for - it's to do with his thoughts of keeping his job and making sure you don't become the main reason for him joining the unemployment line at the uif offices.

Do not rely on the banks - they are NOT your friends - they are there only to make as much profit as they possibly can from their clients - that's their responsibility to their shareholders. You are not a 'valued client' - you are an opportunity for them to make some more profit.

Ever wondered why all the advertising is so heavily geared towards brainwashing you into believing that the bank is there to help you ? How can we help you ? Together, forever, today tomorrow, etc. That's all a crock of kr@p.

They place a huge amount of effort into making you think they there to help you and they are you're best friends. Why is that. Are they worried that we start seeing their true colours ?

Just a thought.

[Dave A]

" it is ever since the bank has become politically correct"

No boet. I got beat up by the bank just like you did before any "politically correct" stuff kicked in. Account scoring came with computerisation.

[murdock]

dave i agree i got the same thrashing from nedbank 12 years ago but they were even more ruthless because they had more than they needed in policies...in fact they had no mercy they cashed in all my sureties and shut me down within 7 days...i got a letter indicating that i had seven days to return all credit cards and cheques books and 7 days later they called in all my sureties and closed my accounts.

i have been chatting to numerous people about overdrafts and credit card credit limits...do i keep it even at a manageable amount or do i scrap the limits completely...i have also been trying to find ways to benefit from them...like using my credit card to pay accounts to get voyager miles...put the money into credit cards then pay my accounts without going into the red...problem is money transfer fees again so they make money out of me....having to travel around paying accounts...maybe just go back to paying cash for everything and get paid in cash from customers...then i am out the system...they cant track every transaction i make...start saving in the biggest joke of the banking system "deposit fees" got to pay to put my money into the bank

lets hear from everyone how they cut back on cost or money saving tips...there have got to be some smart people out there who have figued out ways to save money even be it small amounts.

bottom line is complaining screaming and shouting is not gona change anything...i need to find ways of getting what i want and not what banks dictate to me...there is no such thing as a free ride someone in the end always pays even if it is not the person taking the free ride.

[Dave A]

i have been chatting to numerous people about overdrafts and credit card credit limits...do i keep it even at a manageable amount or do i scrap the limits completely

Credit cards are useful (try hire a car without one). I think the big thing with credit cards is self control.

It would be interesting to hear what people here reckon are good savings strategies nowadays.

[twinscythe12332]

This relates more to my personal life, but hey.
Cut down on any recurring costs. I was paying for my BSc course, and I really felt that. recurring costs may seem convenient when everything is bright and your balance looks good, but there's nothing that will get you in debt faster than a few recurring debit orders.
Make sure you're using what you pay for. I went through 200 SMSes a month easily when my GF was out of town. now that she is around constantly, I use a lot less. Some phone contracts like these business call ones have you paying 500 bucks per month, just for cheaper rates. do you really spend that much time on the phone to justify it versus a pre-paid or top up account?

This has helped me quite a bit. Sorry if I'm a bit off topic =P

[murdock]

i agree with the cellphone contract...i cancealed both and are on pay as you go...months i dont use it i dont pay...i keep my chatting to min. and save big time...when i had a contract i spoke more with the logic...per min saving...but not saving because until i put limits on contracts they would run into hundreds of rands.

keeping the credit card but cancealed limit...to use only when required to save on debit card till fees...will put money into the cerdit card then use it.

paying ridiculous fees for using my bussiness debit card...added up totals into the hundreds of rands...also checked cash withdrawls fees have gone thru the roof...so the credit card will be the way to go.

also reduced clothing accounts to R500 max...handy to keep these for people checking your credit rating...i have always managed to keep these at resonable levels...ie less than R2000.

got more money coming in soon...already planning how to invest or save...considering putting into my bond...my goal is to pay the bond off in the next 5 years and then be total debit free...the next step will be retirement...if everything is paid off and i only have rates... electricity... water and food to pay for i just need some money in the bank so i can retire and i wont even be 50 yet.

[Dave A]

Cut down on any recurring costs. I was paying for my BSc course, and I really felt that.

Considering that course is a major contributor to the cause of your income, at least you know you're getting a positive return on your investment

Great point, though. There are lots of "recurring costs" scenarios where the return is not nearly as enduring or obviously worthwhile.