Huggies Forum

2 credit cards Lock Rss

Need some financial advise on how to best pay off our two credit cards.

Prior to having babies we had two credit cards (his and hers) and we pretty much stayed on top of repayments and had balance at 0 on both. Since having bub we slipped further and further into credit and I absolutely hate it. I have currently cut up my credit card so i can't access it and only use my partners credit card for bill payments and put money back from cheque account straight away.

well the problem is that we accumulated a big debt on them (around 1600 on one and 1900 on the other one) and no matter what I try we can't chip away at it. So what I need is some suggestions of what I can do to make it better? would merging two credit cards lower our interest as we seem to be paying around 70 dollars a months on interest alone? What other steps have worked for you? I want this debt gone.

Also I thought I would mention we live on one wage right now as i am a stay at home mum, with another bub on the way.
are you in NZ or Australia? i dont know about in Australia but in NZ the banks will consolodate debt you have on other cards and give you a lower rate (usually for the 'life of the balance' or a few months) if you transfer to their credit card. The only problem may be proving your ability to service the debt if you are only on one income now, but its worth a go. You could also try just using money you have in your cheque account for a few months and setting up an automatic payment that goes out in the same frequency as your wages come in (rather than monthly when you get the bill) and make sure it covers the interest and a little bit extra, so you are always paying something off the principal, too. If you dont want to cut up your partners credit card, then talk to your bank about having a reducing limit on it, so as you pay money off they reduce the limit, meaning you cant keep spending more. I would go and talk to your bank first and see what they can do smile

http://lbdf.lilypie.com/YYXfp13.png

I was going to suggest the same thing if you are in Aus. Get a new card with a new bank that offers you a lower interest rate on the balance transferred across from the old cards. Be careful though as I would assume the low rate would not apply to putting new things on the card.
Yes we are in Australia. From what I have found out from other banks I called so far we actually have one of the higherest rates. I found a good bank to transfer my husband's balance too, but I can't transfer mine till I will have some income.
Sign in to follow this topic