Found a way to pay off credit cards fast!

[Malibustyle23]

Some posters you will always remember no matter how infrequently they post.

 

[kashzan]

Nelson84 , one question..Did you ever purchase the car you posted about. The one where you were going to put THAT on a credit card for lower interest. You always seem to post about things that seem a bit underhanded. Just saying...

 

[nelson84]

Nelson84 , one question..Did you ever purchase the car you posted about. The one where you were going to put THAT on a credit card for lower interest. You always seem to post about things that seem a bit underhanded. Just saying...

Which car? I have bought lots of cars

 

[NinaBella]

I googled and read a little on a few Canadian CU websites with overdraft on the accounts like this. What I read was a condition that the account had to be brought current once every 30 days.

Employee perks still have to fall under banking regulations. If this works out for the OP great, but sounds like there could be some negative implications if the OP doesn't fully understand the terms and conditions.

 

[Jen and Ashwin]

I googled and read a little on a few Canadian CU websites with overdraft on the accounts like this. What I read was a condition that the account had to be brought current once every 30 days.

Employee perks still have to fall under banking regulations. If this works out for the OP great, but sounds like there could be some negative implications if the OP doesn't fully understand the terms and conditions.

When I was in college, I once over drafted my checking account and it was very bad. I paid an overdraft penalty that they applied immediately to the account. And the interest compounded daily. It was a week before I noticed and I already had over $150 in fees and interest. I just can't imagine that a bank would allow this kind of activity, even from an employee (or especially from an employee).

Now I know that in Canada things work differently. My FIL has a LoC account that he uses to shift debt around all the time from his credit cards. But then he just runs the credit card back up again, so he never really makes a dent in his payment. And in Canada, there aren't 30 year fixed rate mortgages like we have in the States. He has a 5 year ARM and every 5 years when he refinances, he rolls all of his other debt into the mortgage. This pretty much means that after 10 years, he still owes exactly the same amount on that stupid house as when he bought it. And even worse, he took a home equity LoC out a few years ago to pay for a big trip and so at this point he will never be able to retire because he will always have a big, ugly mortgage payment.

I hope this works out for you @nelson84 and that you actually pay off your CC debt and are in a much better financial position. But I have seen this kind of behavior and usually it just continues to dig people into a deeper hole.

 

[nelson84]

I googled and read a little on a few Canadian CU websites with overdraft on the accounts like this. What I read was a condition that the account had to be brought current once every 30 days.

Employee perks still have to fall under banking regulations. If this works out for the OP great, but sounds like there could be some negative implications if the OP doesn't fully understand the terms and conditions.

It's a credit line! Not an over draft. No credit lines do not need to be paid off in 30 days. You are by far no expert on Canadian banks

 

[ISUamanda]

It's a credit line! Not an over draft. No credit lines do not need to be paid off in 30 days. You are by far no expert on Canadian banks

Dude. calm down. YOU were the one calling it an overdraft in your original post.

 

[nelson84]

Dude. calm down. YOU were the one calling it an overdraft in your original post.

It's attached to your bank account so it is both.

 

[nelson84]

So I have better banking products sorry.

 

[nelson84]

Time to go back to work and low interest rates

 

[Mackenzie Click-Mickelson]

Annnddd I'm out...one less audience member

 

[Anthony1971]

I do not see how this would boost ones credit score when all you did was shift the debt. Secured or unsecured your credit score is based in your ability to PAY the debt. You did not pay the debt you just moved to a different lender. I do not see how one could roll credit card debt into a car loan??? You need to supply the bank the invoice for the car the bank owns the car until you pay it off... I do not see how a bank would pay 30,000 for a car that costs 20,000 as if you total the car day one your insurance company will only cover the cost of the car minus depreciation in which case your mandatory gap insurance would cover this??? but this still means the bank is out 10,000??? Lastly secured debit is better than unsecured??? secured debit gets a lower interest rate because you have an asset to cover it in other words you have 30,000 in a bank account that will cover the 30,000 you borrow and the reason the interest rate is so low little risk.. if you default on the loan the bank simply takes the 30,000 out of your bank account you syill have a default on your credit rating....unsecured if you do not pay you have a default and collection agencies chasing you... they could sue you but can not take away your assets...the reason the interest rate is so high as it is high risk....I am glad you found a way to shift your debt at a low rate and it works you... however this is not helpful to people here and a lot of the information you provide is at best misguided.

 

[MaryLovesPoohBear]

It's a credit line! Not an over draft. No credit lines do not need to be paid off in 30 days. You are by far no expert on Canadian banks

Either way it is a loan.

And eventually needs to be paid back.