Last week I decided to email my bank about my so called ‘variable’ loan only going up, and never coming down, even though savings and home loan rates have dropped. *cough*StGeorge*cough*
Their home loans go down overnight after (or even in anticipation of) an interest rate drop from the Federal Reserve as do their online savings accounts, yet their personal loans and credit cards have stayed as high as ever.
They had no such hesitation to put them up 5 times in the last year as interest rates went up.
I must have written a decent email, as I had a call from their customer relations area on Friday. This was to thank me for my feedback and advise she was going to have someone look into my situation and see what they could do for me. I didn't think much more of that over the weekend and assumed I wouldn't hear anything.
So it was a pleasant surprise to have just had a call from the person she said would call me and he’s offered me a 1.5% interest rate drop, which will drop my minimum payment by $72 a month. It’s still variable, and if the rate ends up dropping below the new rate I’ll still get those reductions.
I won’t be changing my new payment of $1000 a month, it just means that for no extra effort on my part I’ll be able to pay an extra $864 a year off my loan, plus save at least an additional $300 a year in interest.
It pays to be a squeaky wheel, especially in a competitive banking environment.
Monday, 3 November 2008
Squeaky Wheel Gets Grease!
Tuesday, 15 July 2008
Big Wins - Third Credit Card Bites The Dust!
I’m proud to be able to say I paid off my third credit card since starting my debt diet today!
Only more 4 to go from here, and only 1 more to meet one of my 2008 goals of paying off 4 of my 7 cards by December 31, 2008.
Credit Card 6 - $0. Paid in Full 15/07/2008
I decided to use my extra pay from my pay rise to get rid of it, so the UK Fund won’t get a boost until next month now, and I’m OK with that.
I now have a $600 payment to snowball onto my next focus debt, Credit Card 3 which is now my smallest debt, but still quite substantial at $5,597.
I've crunched my numbers, and with some small tweaks I’m confident I’ll be able to get it paid off before the end of the year. I wasn't that sure even two weeks ago, but I've found a way.
Onwards and downwards!
Monday, 16 June 2008
Starter Emergency Fund Sorted
I received my annual bonus late last week, so was able to complete funding my starter emergency fund to the $2000 I was working towards. Yay!
As a very pleasant extra I also receive the Superannuation Guarantee on the bonus payment, so got a nice boost into my retirement savings this month, on top of my regular monthly salary contribution, plus the 3% I'm contributing myself pre-tax.
For the non Aussies, the Superannuation Guarantee is our version of a retirement fund, the big difference to say an American 401K is it’s mandatory for employers to contribute on your behalf. Employers must pay a minimum of 9% of your pretax salary into your superannuation (retirement) account. As my bonus is considered part of my package, it counts toward that 9% total for the year. Sweet!
As for the rest of the bonus, I've:
- set aside $1000 to go into my First Home Savers Account once it starts here in October,
- paid a decent chunk off my focus card,
- paid a double payment on my personal loan,
- boosted my goal account to $1000 (I really need a new bed and mattress),
- bought a new outfit for work (from Target, 30% off),
- put $500 aside to start my 40th birthday 'UK tour' fund for June/July 2009.
July’s Ugly Truth is shaping up to be a very good news story!
Tuesday, 4 March 2008
Big Wins - Second Credit Card Bites The Dust!
I’m very proud to be able to say I paid off my second credit card in February!
Only more 5 to go from here (yes I know I still have 5!), and only 2 more to meet one of my 2008 goals of paying off 4 of my 7 cards by December 31, 2008.
Credit Card 7 - $0. Paid in Full 29/02/2008
It was both my lowest balance and my highest interest rate, so regardless which snowball method you follow it’s all good. From now on things will head down a modified Dave Ramsay plan.
I now have a $400 payment to snowball onto my next focus debt, namely Credit Card 6 which is now my smallest debt, plus my increased focus on my Personal Loan, which now has the highest interest rate of all my debts, and is also the highest balance.
Onwards and downwards!
Monday, 1 October 2007
September In Review
Savings Identified And Actioned
- Cancelled Fitness First gym membership = $900 a year saving
- Cancelled QuickFlix membership = $443 a year saving
- Cancelled VideoEzy Unlimited membership = $360 a year saving
- Started brown bagging breakfast = $1230 a year saving
- Started brown bagging lunch = $1645 a year saving
- Started using public transport to get to work = $3970 a year saving
Big Wins
- Paid off credit card number 5 on the 22nd September
- Got a new job that pays 10.6% more than my current salary! Starts on the 22nd October.
I will now snowball payments onto credit card number 7 from October. I'm on my way, Woohoo!
Friday, 21 September 2007
Big Win Number 1
I have to say I’m pretty chuffed with myself. I paid off my first credit card today, woohoo
Credit Card 5 - $0 Paid in Full 21/09/2007
It was both my lowest balance and my highest interest rate, so regardless which snowball method you follow it’s all good. It was even one of those pesky store cards.
So the $345 that I was paying every two weeks on that one will now roll onto the next focus card, Credit Card 7.
