Credit Card Debt Solution

[offergold]

Guys. . . . Want to check with you guys do you guys have any encounter with overspending of credit cards?

 

I have one friend who have overspend on his credit cards and ready credit and is very stress over this issue.

 

Is there anyway i can help him beside lending him money?

[Carnoob]

Visit IPTO

 

https://www.mlaw.gov.sg/content/ipto/en/bankruptcy-and-debt-repayment-scheme/information-for-bankrupts1.html

[Spring]

Guys. . . . Want to check with you guys do you guys have any encounter with overspending of credit cards?

 

I have one friend who have overspend on his credit cards and ready credit and is very stress over this issue.

 

Is there anyway i can help him beside lending him money?

 

Suggest he call up the bank to negotiate that they work out an instalment repayment plan for him

and also to stop interest from recurring.

I'm not sure if you have to paint a sob story to the bank to achieve this.

 

Otherwise it will be a never ending spiral. I believe the banks will accommodate but your friend has to be committed to the instalment plan else if he doesn't keep up with the instalments, he risks

action being taken by the bank and this whole repayment plan being withdrawn.

 

Good Luck!!

[Ben5266]

The people in this forum buy car use full cash one...

I doubt you could get any good advise.....

[Sorrow]

But i think working out an instalement plan also affects the credit rating of the cardholder, as I ever called the Bank to check before coz somebody who is using the supplementary card gifted to her decides not to pay and I was checking what is the difference between making a full sum payment of the outstanding and an instalement plan.

 

but it beats better than the Bank start to send you love letters i suppose.

[Doppel]

You have to ask your friend to take a disciplined approach to overcome his problem. Lending him money, while easy, would not help him in the long term.

 

1. List down the total amount unsecured debt: credit cards, overdraft, with the corresponding interest rates;

2. Take-home income minus minimum living expenses (travel, food, accommodation, communications)

 

Find out what is the balance each month that is available for repayment. Got performance bonus or AWS, pay down your debts; do not go on vacation, buy expensive watch, etc.

 

If he trusts his family, can share; otherwise, solve the problem yourself.

 

Car: if possible, can keep, but forget about changing performance parts, forged rims, etc; pump the cheapest grade pertrol the car can take. Drive it to the ground, end of COE.

 

No more pubbing, KTV, open Martell, pay for friends nonsense; no Starbucks, CBTL, etc. Cut off your "zhu peng gou you" if needed, you don't need them.

 

Most importantly, keep his job, otherwise it would be disastrous; declaring bankruptcy while is an option, I would strong advise against: be a man, pay off your debts and start afresh.

 

Twelve years ago, I was in the same situation: mired in CC and OD debt of some $70K, more than my annual salary; then I did the unthinkable of quitting my job without another one, every month the hole got bigger and bigger, 1.5% interest per month on $70K already $1K interest, no joke.

 

I sold my three-year old pre-owned car then to cut down expenses; meantime kept trying to look for a job. No joke, if I wasn't steady, I'd suffer a nervous breakdown.

 

I also thought of filing for bankruptcy back then, but I thought that would be the "soft" option out; fortunately at that time, I managed to make some side income to keep up the minimum payments and lived a very basic lifestyle: I recalled that I didn't even have a post-paid mobile number, but a prepaid card.

 

And I only found a stable job two years later; during the interim two years, fortunately I was still single, lived with my parents', however I kept my situation totally mum from them or anyone, I borne the burden in my heart 100% myself.

 

During that time, I also never confided in my girlfriend then, but it was the best thing that happened to me: I saw her true colours, because she was a fair-weathered girlfriend who only wanted the good times but did not want the bad times. She dumped me just by sending an sms: good riddance.

 

So be strong, be resilient: make good with your debts, and don't overspend.

 

You'll be free again one day, like me now.

Edited October 29, 2014 by Doppel

[Ktglfc]

Meet the banks to have instalment plans to pay.

Never ever think of getting this shit out by declaring bakrupt, this is the worst solution unless he is out of job now, and with no means to pay a cent.

 

Lastly, cancel all credit cards !

CC is the double-edge sword... give you the luxury of spending future money easily, and yet when unable to control overspending, you will be taxed 24% interest, just like loan-sharks !

 

Painful lesson to learn

[SGCMsmallcar]

I have a friend with have a outstation of S$ 200k with many credit cards n credit Line. Min payment per mth will be about 7k. Everyday want to borrow money from ppl. Lend him also no use. This mth settle next mth come again.

[Doppel]

Meet the banks to have instalment plans to pay.

Never ever think of getting this shit out by declaring bakrupt, this is the worst solution unless he is out of job now, and with no means to pay a cent.

 

Lastly, cancel all credit cards !

CC is the double-edge sword... give you the luxury of spending future money easily, and yet when unable to control overspending, you will be taxed 24% interest, just like loan-sharks !

 

Painful lesson to learn

 

After my painful lesson twelve years ago, I only now have two credit cards: one for petrol (DBS Esso MasterCard) and one for general expenses (Maybank Family and Friends MasterCard; no annual fee).

 

And I am even paranoid now that I pay off my credit card balance before they send me the monthly statement, so usually it is zero balance statement with no payment required.

 

Forget about accumulating CC points, rebate nonsense: you have to control your spending; pay cash or Nets Flashpay if possible, unless got good discount with CC (like petrol).

 

Make a daily or weekly position statement of all your liabilities and income, and make it a goal to reduce it bit by bit every month.

[Evillusion]

Debit card is ok u are using money you have....credit card must have the discipline when using. Use oni in emergencies or when u have the means to pay up as soon as the bill arrives at your mailbox. Your friend must have spent a substantial amount to be in this position!

I have a friend with have a outstation of S$ 200k with many credit cards n credit Line. Min payment per mth will be about 7k. Everyday want to borrow money from ppl. Lend him also no use. This mth settle next mth come again.

wow....200k....buy what har? when i owe bank any amount no matter how small i very restless liao!

[Sabian]

Never ask your friend song boh?

 

You lend him money so easily like the bank lend him so easily but the bank can thrash his credit rating and you can't.

 

Ask him go

http://www.ccs.org.sg/

 

Adult liao, he shd know himself best. Cannot control better don't apply.

 

Last time I counted, I have about 20 over cards. Point is, use your credit card like you are using your own bank account cash.

 

Don't spend what you don't have. Easier said than done for some people. This category shd just stick to cash, not even debit cards. During uni days, I part time in a bank's collection team. A lot of sob story on repeat mode.

Edited October 29, 2014 by Sabian

[Spring]

You have to ask your friend to take a disciplined approach to overcome his problem. Lending him money, while easy, would not help him in the long term.

 

1. List down the total amount unsecured debt: credit cards, overdraft, with the corresponding interest rates;

2. Take-home income minus minimum living expenses (travel, food, accommodation, communications)

 

Find out what is the balance each month that is available for repayment. Got performance bonus or AWS, pay down your debts; do not go on vacation, buy expensive watch, etc.

 

If he trusts his family, can share; otherwise, solve the problem yourself.

 

Car: if possible, can keep, but forget about changing performance parts, forged rims, etc; pump the cheapest grade pertrol the car can take. Drive it to the ground, end of COE.

 

No more pubbing, KTV, open Martell, pay for friends nonsense; no Starbucks, CBTL, etc. Cut off your "zhu peng gou you" if needed, you don't need them.

 

Most importantly, keep his job, otherwise it would be disastrous; declaring bankruptcy while is an option, I would strong advise against: be a man, pay off your debts and start afresh.

 

Twelve years ago, I was in the same situation: mired in CC and OD debt of some $70K, more than my annual salary; then I did the unthinkable of quitting my job without another one, every month the hole got bigger and bigger, 1.5% interest per month on $70K already $1K interest, no joke.

 

I sold my three-year old pre-owned car then to cut down expenses; meantime kept trying to look for a job. No joke, if I wasn't steady, I'd suffer a nervous breakdown.

 

I also thought of filing for bankruptcy back then, but I thought that would be the "soft" option out; fortunately at that time, I managed to make some side income to keep up the minimum payments and lived a very basic lifestyle: I recalled that I didn't even have a post-paid mobile number, but a prepaid card.

 

And I only found a stable job two years later; during the interim two years, fortunately I was still single, lived with my parents', however I kept my situation totally mum from them or anyone, I borne the burden in my heart 100% myself.

 

During that time, I also never confided in my girlfriend then, but it was the best thing that happened to me: I saw her true colours, because she was a fair-weathered girlfriend who only wanted the good times but did not want the bad times. She dumped me just by sending an sms: good riddance.

 

So be strong, be resilient: make good with your debts, and don't overspend.

 

You'll be free again one day, like me now.

 

Kudos to you bro and thanks for sharing!

You have been resilient and I respect you for being able to overcome this difficult challenge

single handedly, think you have become stronger from this episode!

 

Wish you good luck and a smooth life ahead, owe you 5!!

[SGCMsmallcar]

I have a friend with have a outstanding of S$ 200k with many credit cards n credit Line. Min payment per mth will be about 7k. Everyday want to borrow money from ppl. Lend him also no use. This mth settle next mth come again.

 

[Kb27]

Simple.

Stop all spending.

Start paying all the debts.

[SGCMsmallcar]

Debit card is ok u are using money you have....credit card must have the discipline when using. Use oni in emergencies or when u have the means to pay up as soon as the bill arrives at your mailbox. Your friend must have spent a substantial amount to be in this position!

wow....200k....buy what har? when i owe bank any amount no matter how small i very restless liao!

 

Spend on cars. Change car top up from 15k to 20k all use creditline. Go hang flower joint. Go sian poiny. now everything also dun have. No car no honey

[Vegas]

most times besides buying luxurious items, it due to gambling..

 

then to pay off debts, go buy something for someone else, give 20% discount, and pay the merchant on interest free deals, trouble comes when more and more installment comes and no way to meet min payment. interest kick in and hor say liao

 

advise for overspending: pay up on negotiated terms with banks.

if want to continue living lavishly, good luck

[Doppel]

Simple.

Stop all spending.

Start paying all the debts.

Bro,

Yes, in theory it is simple and true: you have to spend less than what you earn to pay down your debts. However, I would recommend to further analyse the reasons behind for overspending:

 

1. Income unable to match with lifestyle;

2. Not tracking expenses;

3. Easy credit, leading to overspending;

4. Other problems, like gambling, kena conned by KTV hostess, etc.

 

Doing up an analysis of the monthly income and expenditure is paramount! Otherwise, a lot of wastage would slip through the fingers. Even now that I am out of debt, I am still vigilant, because I know it is very easy to slip down into the black hole again.

 

One needs to have a complete change of mind set (even after crawling out of debt), and stop chasing after the Joneses.

 

You don't need the F10 and W212 where the Corolla Altis would do;

You don't need the latest iPhone 6 when your iPhone 5 is still working;

You don't need to go for a $50 haircut where a $10 10 minute haircut would do.

 

Change your mind set, and you'd be free from all these ever again.

[Evillusion]

 

Spend on cars. Change car top up from 15k to 20k all use creditline. Go hang flower joint. Go sian poiny. now everything also dun have. No car no honey

waliao......this wan ultimate pawn ownself.....7k a month.....can go buy a nice condo and a good car! But forget about the pinoy lar!