Found a way to pay off credit cards fast!

[nelson84]

Where did she say that she had never heard of lending money without a payment structure?

She said "Life long Bank employee here, employee accounts are flagged and under higher scrutiny due to AML regulations, unless it's a tiny local bank. But a local bank wouldn't grant 30,000 OD with no repayment structure."

A very specific instance (small bank and very large overdraft) where it wouldn't be done without a repayment structure is very different than your claim of her saying that she's never heard of lending money without a payment structure.

You put it in bold. Why are you trying to change it. Yes a local bank did grant a OD with no payment structure. All I have to pay is the minimum of .75%. I will pay it of with hardly putting anything towards interest.

I just told the people on this board how to pay off your cards faster with hardly any interest.

No sure why some of you find it so hard.

 

[Mackenzie Click-Mickelson]

You put it in bold. Why are you trying to change it. Yes a local bank did grant a OD with no payment structure. All I have to pay is the minimum of .75%. I will pay it of with hardly putting anything towards interest.

I just told the people on this board how to pay off your cards faster with hardly any interest.

No sure why some of you find it so hard.

I don't think it's so much that some of us as you put it find it so hard so much that at least in my opinion the way you are using the account is likely not the intended usage.

 

[gdrj]

Hmmm I have no idea if there is good or bad but my first thoughts were

1- Will this reflect negatively on your wife's employment and opportunities for job growth.
2- Can they change the policy?
3- Am I prepared to repay quickly if required.
4- Does it impact credit negatively
5- If my wife terminates employment for any reason what happens.
6- I wouldn't necessarily share this on the boards

 

[SirDuff]

You put it in bold. Why are you trying to change it. Yes a local bank did grant a OD with no payment structure. All I have to pay is the minimum of .75%. I will pay it of with hardly putting anything towards interest.

I just told the people on this board how to pay off your cards faster with hardly any interest.

No sure why some of you find it so hard.

What are you suggesting that I'm trying to change? I bolded it to highlight the relevant sentence. Do you really not see the difference between what I bolded and your assertion that the PP said that there are never any loans without a repayment structure? Do you really take her sentence to suggest that she had never heard of a credit line?

I'm saying that I don't believe in your system (though your ability to twist a simple sentence into something completely different does give one pause). I'm saying your insinuation that the PP doesn't know what is taking about is based on a very flawed premise.

And no, since no one else on this board works at your wife's bank, you did not tell "the people on this board how to pay off your cards faster with hardly any interest". Your system won't work for anyone else here.

 

[nelson84]

What are you suggesting that I'm trying to change? I bolded it to highlight the relevant sentence. Do you really not see the difference between what I bolded and your assertion that the PP said that there are never any loans without a repayment structure? Do you really take her sentence to suggest that she had never heard of a credit line?

I'm saying that I don't believe in your system (though your ability to twist a simple sentence into something completely different does give one pause). I'm saying your insinuation that the PP doesn't know what is taking about is based on a very flawed premise.

And no, since no one else on this board works at your wife's bank, you did not tell "the people on this board how to pay off your cards faster with hardly any interest". Your system won't work for anyone else here.

Yes it will. Get a job at a bank with an overdraft. Regular bank customers will pay 4.75%. That's a good rate too. Or put your credit cards into your mortgage at renewal or in with your car loan. But the way we are doing it you can pay it off as fast or as slow as you want too. It works good for un expected bills. And will boost your credit score for your next renewal on your mortgage to get the best rates.

 

[ISUamanda]

I know Canadian mortgages work differently than US mortgages, but in general it's a terrible idea to roll unsecured debt (credit cards) into secured debt.

You are putting your house at risk if you can't make the payment. Way worse than defaulting on a credit card.

Shuffling debt around makes people feel good. But those who "wipe out" credit card debt by shuffling it to another loan have a shockingly high relapse rate - i.e. They run the credit cards back up in a few short years.

 

[Dentam]

Phew - all I need to do is change my entire line of work and get a job at a bank!

 

[nelson84]

Phew - all I need to do is change my entire line of work and get a job at a bank!

What is the interest on your credit cards? I just pointed out a way to reduce my interest rate to almost zero.
Sorry for being thrifty.

 

[nelson84]

I know Canadian mortgages work differently than US mortgages, but in general it's a terrible idea to roll unsecured debt (credit cards) into secured debt.

You are putting your house at risk if you can't make the payment. Way worse than defaulting on a credit card.

Shuffling debt around makes people feel good. But those who "wipe out" credit card debt by shuffling it to another loan have a shockingly high relapse rate - i.e. They run the credit cards back up in a few short years.

That's wrong in Canada a secured debt is better than unsecured debt in Canada. Secured means you have assests and secured debt is at a lower interest rate. Unsecured is at a higher interest rate. Higher interest means your a credit risk and lowers your score.

 

[MaryLovesPoohBear]

Yes it will. Get a job at a bank with an overdraft. Regular bank customers will pay 4.75%. That's a good rate too. Or put your credit cards into your mortgage at renewal or in with your car loan. But the way we are doing it you can pay it off as fast or as slow as you want too. It works good for un expected bills. And will boost your credit score for your next renewal on your mortgage to get the best rates.

So your credit union has extended to you a $30,000 unsecured loan based solely on the fact that she is an employee?

Sorry, that sounds pretty crazy. I'm surprised the board has agreed to this.

(I don't even want to comment on the $30,000 outstanding in credit card debt)

Edit to add: If this is a secured loan, be prepared to lose whatever your security is.

 

[nelson84]

So your credit union has extended to you a $30,000 unsecured loan based solely on the fact that she is an employee?

Sorry, that sounds pretty crazy. I'm surprised the board has agreed to this.

(I don't even want to comment on the $30,000 outstanding in credit card debit.)

If you have any assests it's not unsecured. It's not a loan! It's a credit line attached to your bank account at a very low interest rate. Not hard to understand. Plus if you have a high credit score in Canada the banks will give you pretty much anything you want.

 

[kymom99]

That's wrong in Canada a secured debt is better than unsecured debt in Canada. Secured means you have assests and secured debt is at a lower interest rate. Unsecured is at a higher interest rate. Higher interest means your a credit risk and lowers your score.

But you do understand that if you have trouble making the payments you lose whatever you secured it with, right?

I think people are having trouble calling this thrifty when somehow you managed to accumulate significant credit card debt. I understand it may not be the 30,000 amount but that is the limit on this overdraft protection. But if your wife's entire years salary is being used to pay it off, that's a whole lot of bank. Just sayin

 

[MaryLovesPoohBear]

If you have any assests it's not unsecured. It's not a loan! It's a credit line attached to your bank account at a very low interest rate. Not hard to understand. Plus if you have a high credit score in Canada the banks will give you pretty much anything you want.

Oh, I have overdraft protection. I've had it for years.

Overdraft protection is a loan. A credit line is a loan. What you have is a loan. It is considered revolving credit.

On the plus side, if you continue to pay it off, you can borrow the money again to pay off the cards next time they are maxed out.

 

[ceecee]

I can see this as a good employee perk if someone accidentally overdrafts by a small margin, but they really don't mind if you put $30,000 as an overdraft? Something seems off with that. Like a loan for .75%? Not even bank employees get that kind of loan.

 

[Mackenzie Click-Mickelson]

That's wrong in Canada a secured debt is better than unsecured debt in Canada. Secured means you have assests and secured debt is at a lower interest rate. Unsecured is at a higher interest rate. Higher interest means your a credit risk and lowers your score.

It's not a Canada vs U.S. thing at all; the definitions of secured and unsecured debt don't stop at the border between the two countries.

I would however say most people, regardless of country, wouldn't want to use collateral in order to secure a loan. It's usually a last ditch thing to do because if you default you can lose your car, your house or whatever else you put as collateral. The consequences can be greater with secured debt than with unsecured debt. Secured debt also usually isn't forgiven so to speak when it comes to bankruptcy like most unsecured loans are.

I also agree with PP I wouldn't call this thrifty you are in essense transferring the balance from a higher interest account to a lower one and in a way that most people would find...

 

[adisneyaunt]

The wife got a job at a bank. Bank employees can get a bank account with an overdraft of $30,000. So what we did was pay off all our credit cards and went into overdraft on the bank account. But the best part is when in overdraft the interest is 0.75%. So her paycheck goes in there and the paycheck deposited makes the payment. And if you need something just use the bank card. You stay in the negative until it's paid off but it's by far the best way and lowest interest that we have found. Everything will be paid off soon.[/QUOTE]

The wife got a job at a bank. Bank employees can get a bank account with an overdraft of $30,000. So what we did was pay off all our credit cards and went into overdraft on the bank account. But the best part is when in overdraft the interest is 0.75%. So her paycheck goes in there and the paycheck deposited makes the payment. And if you need something just use the bank card. You stay in the negative until it's paid off but it's by far the best way and lowest interest that we have found. Everything will be paid off soon.

I strongly believe that there is a payment structure in place tho it is likely long term. THere are likely other clauses as well... like immediate payoff if there is a termination ( voluntary or not). There are also other things to consider like the overall impact on ones credit history for future financial endeavors.
I hope your decision does help you to pay off that very large cc debt and be in a better financial place At a quick pace.
The "debt" hanging over your head, secured by your accts/paychecks can have dire consequences. It can feel "easy" to just have minimal money deducted but unless huge additional principal payments are paid monthly, that debt can be around for a very long time
Best of luck!!

 

[BigAlsGal]

I go with the old saying. "If it's too good to be true..."

Hope it all goes according to plan!

 

[nelson84]

I can see this as a good employee perk if someone accidentally overdrafts by a small margin, but they really don't mind if you put $30,000 as an overdraft? Something seems off with that. Like a loan for .75%? Not even bank employees get that kind of loan.

Well your wrong they do get that rate.

 

[nelson84]

The wife got a job at a bank. Bank employees can get a bank account with an overdraft of $30,000. So what we did was pay off all our credit cards and went into overdraft on the bank account. But the best part is when in overdraft the interest is 0.75%. So her paycheck goes in there and the paycheck deposited makes the payment. And if you need something just use the bank card. You stay in the negative until it's paid off but it's by far the best way and lowest interest that we have found. Everything will be paid off soon.

I strongly believe that there is a payment structure in place tho it is likely long term. THere are likely other clauses as well... like immediate payoff if there is a termination ( voluntary or not). There are also other things to consider like the overall impact on ones credit history for future financial endeavors.
I hope your decision does help you to pay off that very large cc debt and be in a better financial place At a quick pace.
The "debt" hanging over your head, secured by your accts/paychecks can have dire consequences. It can feel "easy" to just have minimal money deducted but unless huge additional principal payments are paid monthly, that debt can be around for a very long time
Best of luck!![/QUOTE]

We are paying $4500 a month on the debt at 0.75% so it won't be around for a long time.

 

[ICF]

Seems too good to be true....

....although, since I pay off my CCs each month it wouldn't impact me.