Credit Card Debt Solution

[Yewheng]

  On 11/23/2015 at 1:06 PM, Solar said:

thought that some time back they already implemented the kind of individual financial profiling to sieve out people that should not be loaned money...

apparently, it don't really work, or they use it to aim those people in order to earn their interests. 

If it didn't work, implement more fierce measures. Just like what they did for the housing bubble, implement so many measures, end up the last one on loan curb finally stop it.

[lausai88]

  On 11/23/2015 at 12:57 PM, Angcheek said:

why ? u got 1 more zero than him hur hahaa

 

 

 

 yaloh, i got 1 more zero and 1 more dot than his $7,500 --> $750.00 

[Icedbs]

  On 11/23/2015 at 1:02 PM, Yewheng said:

That is the shit we are in now, like the housing bubble, banks, property developer and etc all keep want to do the wrong thing. They keep want government to remove loan curb.

 

Credit card debt is going to be out of control and yet bank do not care, as long as there is figure to show NOW, they are good to go. So this time, government must step in very fierce to stop it from going out of control due to how reckless the bank is doing now.

 

We need to understand that  from a government perspective,  it is important that we have a strong prospering banking sector. So while they will curb irrational spending on high ticket items like properties and cars so as to avoid financial calamity, they certainly will not go into curbing people buying their pradas or rolexes.

 

Look, if the government really want to solve this credit card rollover, it is easy. Just eliminate this minimum sum thing, so either you pay full or your card get canceled. But if they do that, the banking sector will have nothing to earn because 24% on credit card debt is probably their most profitable business.

 

So I suggest don't depend on the government.  We just have to be financially prudent, or everyone get their kids to be a banker.

Edited November 23, 2015 by Icedbs

[Yewheng]

  On 11/23/2015 at 1:20 PM, Icedbs said:

We need to understand that  from a government perspective,  it is important that we have a strong prospering banking sector. So while they will curb irrational spending on high ticket items like properties and cars so as to avoid financial calamity, they certainly will not go into curbing people buying their pradas or rolexes.

 

Look, if the government really want to solve this credit card rollover, it is easy. Just eliminate this minimum sum thing, so either you pay full or your card get canceled. But if they do that, the banking sector will have nothing to earn because 24% on credit card debt is probably their most profitable business.

 

So I suggest don't depend on the government.  We just have to be financially prudent, or everyone get their kids to be a banker.

Having a prospering banking sector is one thing. But it must be substainable, if it is backed by unsubstainable credit card debt, then in future, a lot more people would suffer.

 

Just like before the housing bubble collapse, everyone is happy that property price keep rising as they can sell off at profit and buy bigger house, they can earn big bucks out of it by selling higher few years later. Never did they care about the consequences of if housing prices rise too fast and too high, it become unsubstainable. All don't care.

 

The credit card debt number is now quite scary, but do banks care? I hope they do. If not they would be very foolish to continue to do stupid mistake that led to something bigger that is going to happen that by then they want to do something about it but is too late.

 

 Ya, we should not depend on government. But if things are going out of control, government should step in to prevent things to go out of hand by reckless banking sector. We should of course do our part to be financially prudent,

Edited November 23, 2015 by Yewheng

[Enye]

here all belong to the 66.7% gang

 

Please give chance to the 33.3% minority like me who pay only the min sum every month lah

 

Got young and old to feed and take care you know

 

 

[The_Bear]

  On 11/23/2015 at 1:05 PM, Yewheng said:

Then when the time comes all suffer together. Collapse of bank is very serious thing.

There are 3 human activities that can never be stopped - Gambling, prostitution and money lending.

 

People will always borrow money. And there always will be lenders. It is in-built in human nature to borrow.

[serenade]

  On 11/23/2015 at 3:28 PM, Enye said:

here all belong to the 66.7% gang

 

Please give chance to the 33.3% minority like me who pay only the min sum every month lah

 

Got young and old to feed and take care you know

 

 

[Throttle2]

  On 11/24/2015 at 1:41 AM, Bavarian said:

There are 3 human activities that can never be stopped - Gambling, prostitution and money lending.

 

People will always borrow money. And there always will be lenders. It is in-built in human nature to borrow.

Are you trying to say i am not a human?

 

[Blackyv]

  On 12/12/2015 at 8:29 AM, Throttle2 said:

Are you trying to say i am not a human?

 

Edited December 12, 2015 by Blackyv

[Throttle2]

  On 12/12/2015 at 8:36 AM, Blackyv said:

Hahaha...yalor... I don't gamble, don't visit pro and yup, don't like to borrow money hence loan free... Im a martian.. Hehe..

Wah, you also ffrom my planet ?

Steady lah

[Enye]

  On 11/24/2015 at 3:09 AM, serenade said:

Bro, using credit card is very expensive (interest wise - 24% p.a ) to borrow unless it is for very short term like a week or two. Anything longer, it is cheaper to make use of unsecured revolving credit like Citibank's Ready Credit.

 

If you are already in credit card debt, it is better to convert the debt to revolving credit as the interest rate is 12% to 18% vs 24% for credit card.

 

Even better if you can plan your spending in advance, is to take a personal term loan for a specific purpose (e.g renovation / wedding) as the interest rate will be much lower than revolving credit interest rates. And if you can secure the credit facility against a time deposit or other collateral, the interest rate will be even lower. Usually Cost of Funds + %.

Thank you for your advice.

 

I am really bad in finances

 

Unlike full cash ones here

 

 

[Throttle2]

  On 12/12/2015 at 9:03 AM, Enye said:

Thank you for your advice.

 

I am really bad in finances

 

Unlike full cash ones here

 

 

[Blackyv]

  On 12/12/2015 at 9:00 AM, Throttle2 said:

Wah, you also ffrom my planet ?

Steady lah

 

 

walau.. i know you have many rolexes... but didnt know you have a planet too...

[Voodooman]

  On 12/12/2015 at 9:45 AM, Throttle2 said:

At least you not jobless

Jobless and full cash, that is where I want to be one day.

[lausai88]

  On 12/12/2015 at 11:34 AM, Blackyv said:

walau.. i know you have many rolexes... but didnt know you have a planet too...

 

planet watch but not from lorlex

 

[Motorcar]

  On 10/29/2014 at 8:17 AM, Doppel said:

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.

 

Your story about how you got yourself out of credit card and OD debt is truly inspiring and will motivate and encourage others to follow in your footsteps. Banks especially their consumer credit division are really an evil financial institution and scourge of society.

 

 

[Doppel]

@Motorcar,

There is nothing evil or bad about credit cards; just that if someone doesn't know how to budget his expenses, credit card seems a very "easy" option to tide things over, while not solving the fundamental problem of overspending.

 

Even if you make $1 million a year but spend $1.2 million, you'd still be mired in debt.

 

The key point is: spend within your means, and don't go broke trying to look rich.

[Throttle2]

  On 12/12/2015 at 3:11 PM, Doppel said:

@Motorcar,

There is nothing evil or bad about credit cards; just that if someone doesn't know how to budget his expenses, credit card seems a very "easy" option to tide things over, while not solving the fundamental problem of overspending.

 

Even if you make $1 million a year but spend $1.2 million, you'd still be mired in debt.

 

The key point is: spend within your means, and don't go broke trying to look rich.

Well said