Welcome to 2009! Whether you're back at work or still on holiday we've got loads of goodies to help keep you feeling the summer love! Click here for a taste of what we've got...
Meet Lauren*, a 26-year-old nzgirl who works in the marketing department of a large Auckland company. Lauren earns $63,000 and has credit card debt of $14,000. Her story is probably very familiar to many of you out there…
I got my first credit card the day I turned 18. I had gone into the bank to change my accounts around and was offered a card with a $1,000 limit. I didn’t see any reason not to, so I signed my life away and a few days later my shiny new card arrived.
Later that year I went on a trip to Australia with my two best friends. We lived it up for a couple of weeks of shopping, partying and eating out. I got back and my card was maxed out.
I had the best intentions of paying the debt off quickly, but I struggled to make a dent in it. When my bank sent me a letter offering to increase my limit to $3k I jumped at the chance.
I loved the freedom my credit card gave me. I could go shopping, and even if my bank account was empty I could still splash out on a new dress or some hot shoes. I tried to be disciplined with how I used my card, but I would find it too tempting.
I’ve always had the best intentions of paying off the card, but instead it’s just been easier to increase my limit. As my salary has risen over the years I’ve felt more comfortable upping my spending on the card. Despite making plans to get the debt down, I would buy a new outfit, go for a big holiday or find myself lumped with a bill for car repairs, and my good intentions would fly out the window.
I’ve been chipping away at the minimum payments and putting lumps sums on the card whenever I can, but I find myself in my mid 20s paying a ridiculous amount of interest with nothing much to show for it.
I want to get ahead financially and would love to buy a house before I turn 30 so I’ve cut up my card and focused on getting the debt under control. I hope reading my story will encourage other nzgirls out there to be more careful with their credit card debt. With all the low-interest cards out there now, there’s no reason to end up in this situation… a lesson I wish I hadn’t learnt the hard way!
Lauren Does Lauren’s story sound familiar? If you’re struggling with high interest credit card debt or want to avoid ending up in a similar situation then you should consider Westpac’s Low Interest MasterCard. Given most people don’t pay off their whole credit card balance every month, this card helps stop that debt spiralling out of control.
For a limited time this card offers a super low interest rate of just 4.99% p.a. on retail purchases for the first six months. After that, the ongoing rate is still a very competitive 12.95% p.a. Compared to the standard credit card interest rate of about 20% that’s a huge saving in interest payments! Plus, if you've got an outstanding balance on another credit card, you can transfer it to a Westpac credit card and pay a low rate of just 8.75% p.a. on that amount until it's paid off. To find out more about the card click here.
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I got my first credit card the day I turned 18. I had gone into the bank to change my accounts around and was offered a card with a $1,000 limit. I didn’t see any reason not to, so I signed my life away and a few days later my shiny new card arrived.
