Hi people if my credit card limit is $30,000 and cash advance percent is 21% , and i decided to take cash out of my credit card to invest in property how much intrest would i pay to the credit card? thanks
Hi Young I.
I am far from an expert in these matters but I will try to get the ball rolling here.
I'm guessing you intend to use credit for your deposit. The banks most likely won't accept this, and for good reason. If you can't save for a deposit, you will most likely struggle to pay the two lots of interest and could end up owing more than you originally borrow. I suggest you go to a bank or loan broker and ask for suggestions and help. PS I htink you will probably pay 21% interest, unless I am misunderstanding your question.
Yes i know i will be paying 21% intrest but on a 30,000$ amount if i took all of the 30k out with 21% how much repayment would i be doing per month on the 30k only.
Hello YI
Paying only the interest portion would be $525/month.
$30,000 X 21/100 = $6300 / 12 = $525
This is really expensive credit.
Hope this helps
ElkaThat's a fair bit of cash.
Trade in your credit card for a personal loan, at least the interest rate will be a helluva lot lower – better yet, get the bank to give you a property loan at 8-9% (you'll be paying less than half the amount of interest).
The other thing about drawing it off your credit card – something the most people are not aware of until it bits – is that you pay interest on the WHOLE amount until it is paid off. ie draw down $30 K pay interest on 30K, pay back 20K, still paying interest on $30K. Not fair I know, but it is in the fine print – well at least that is how it was when I got stung. OK that was 10 years ago, and please someone correct me if I am wrong. But i believe this still catches alot of people and proves very costly.
In short, personally, I would do all I could to avoid getting a deposit together this way.
MickTheYoungInvestor wrote:Yes i know i will be paying 21% interest but on a 30,000$ amount if i took all of the 30k out with 21% how much repayment would i be doing per month on the 30k only.YoungInvestor, I'd suggest you learn some basic maths before you even think about dabbling in investing. Without even the basic tools you're heading for disaster.
I think this one should be in the creative investing section – the VERY creative investing section
Also when you go for the house loan the lender will reduce how much you can borrow by the credit limit of your credit cards.
Sometimes even if you owe zero on the credit card.As for borrowing on a credit card you should only use it for very very short term borrowing rather than for longer term borrowing.
if you could get a personal loan at say 13.5% p/a over 7 years it would cost $127.34 a week . or $132 a week for 14.5%
plus a $150 to set up loan and a $10 a month account fee
worked out from NAB loan calculator
see http://www.nab.com.au/Personal_Finance/0,,82415,00.htmlMost bank websites have calculators online where you can enter the amount of the loan, term and interest rate and calculate repayments.I think you'd be better off using a more traditional deposit.
Are you serious???
You wan't to borrow at 20 something per cent on a compounding interest credit line to start a property portfolio?
You would be wiser to throw all your money and clothes you own into a river and then sticking drugs into a boogie board bag while travelling Overseas –
at least this way you have half a chance.Anyone can get a lot of credit, making money is a complete different game.
Cut up your 20 what? per cent credit card now, save a bit and study up on the fundamentals of money.
Only use high interest credit if the returns are even higher (PROPERTY RARELY RETURNS 21 PER CENT CONSISTENTLY WITHOUT MASSIVE RISK OR MUCH EXPERIENCE)
Most bank websites have calculators online where you can enter the amount of the loan, term and interest rate and calculate repayments.
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