Need Some General Advice Regarding Credit Cards

StMichael SG

I understand that, if you were to cut the cards and return to the bank (together with the letter to indicate you want to close the account), that you are terminating the account with them?

I'd need advice from some people in the know (whether by experience or working in the industry!) regarding the following.

1. Can we negotiate to pay off the outstanding amount in instalments?

2. Would they still charge interest even when that happens (cut the card but still have outstanding amount)?

Thank you so much.

alfagal SG

y dun u call up e bank instead?
cos sometimes, they view on case by case basis, and subjected to approval.

soulwinner SG

once you terminate you account with them , you are still liable for all outstanding balance...

same old rule , pay minimial amount owed per month, and the rest plus a 2.% interest and 24 % per annual until you finishing clearing the debt..

So i advice you to clear asap ... Very Happy

allentyb SG

i use another credit card to pay of the outstanding bill of this current credit card Embarassed

ditzy SG

Of course you have to pay interest, that's the only way banks make money. Laughing

soulwinner SG

So what is your decision??? Very Happy

alwaysdisturbed SG

why people wants to have credit cards?
got benefits meh?

T.Ryousuke SG

1 + 1 meal, Ikea got free drink, petrol got 3% discount.......

hiphop2009 SG

debit card can also do the trick…

alwaysdisturbed SG

i think so too.

Mid9Sun SG

Go take the fund transfer facility...which has much lower interest rates then cc.

It will help you alot....esp those 0% interests for a period of time one

Mospeada SG

once u cancel the card, the bank will demand payment in full from you.

of cos a agreement can be made to pay in installment, but i think they will restrict the term to a maximum of 3-6 months...

and interests will still be charged

Saltiga SG

it will save you the haste from having excessive cash with you, also the probelm with all these debts is not the credit cards its the person that used it

choco B SG

Don’t cut card and close account yet. Just stop spending and try to clear debt ASAP. Call to ask for waiver of late fee if any.

GenX SG

case by case basis

but very likely there is room for negotiation cos bank also want to get back the money and they also know if they press too hard,no use if person really cannot afford it.

of course they will charge the standard interest rate,if not everyone like this,they earn what from credit card?You think bank charity meh,now you owe them money leh,it will already be good enough if they agree to let the person pay back in installment.

menoob SG

debit cards in general have lesser benefits
for example no/less cards points
credit cards also have 0% installment plans at outlets like bestdenki,courts

StMichael SG

Still need to discuss with my wife - because it's my wife who's having the cards. She's not been working for upteenth years, and I'm the one clearing the cards.

Hmm...coming to think of it, we reside in China, and the only property she has is the HDB flat we own jointly (and that's in negative equity!). If not for a sense of ethics (that we need to pay off what we owe), we'd have given them the deaf ear.

Hmm...so even if the card is cut off, the interest still goes on...so no reason to do so then...

4getmenot SG

darn, i wouldn't advise doing that.. and how do you pay off the outstanding bill of the card that you use to pay off the balance outstanding bill of another credit card? Mr. Green

GenX SG

no reason to do so?

You sure your wife can control?

From how much you or maybe your wife know about credit card,best that you cut it so total no chance of spending anymore and dun ever get a credit card ever again.

StMichael SG

The cards are with me Smile