Have an almost 20 year old and he is paying for a car loan (personal loan - as far as I know not secured) he is paying $150 a week in repayments, and has just lost his permanent full time income that allowed him to borrow $22,000 so I am wonder what is the best option for him with only a part time income at he moment and barely managing to make his payments, we spoke to CBA but they have not offered anything.
Son has loan with CBA pesonal loan and repayments are $150 a week
bsk on 11/02/2014 - 16:08
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I know a 27 year old who "owns" 4 houses. I'm a little jealous but I'm pretty sure the vast majority is owned by the bank and I wouldn't like to be in that position if/when the housing bubble pops.
@zappy_32: That's great.
The bank clearly won't lend him/her the money if he/she couldn't service the loan and if he/she obtains the 4 houses before 2012 then he/she is now in a very good position.
Well done I'd say.
Yep, definitely in a good position right now hence me being jealous! Apparently the three rental properties rental income pays the mortgage which seems to be harder and harder these days. Of course if there is a bubble and it pops he loses the lot… Thinking about it now it's only 7 years work really - not the end of the world!
It was on one of the news websites recently. The bloke was earning I think $50kpa (which lets be honest, is really not very much for owning any type of house) but had 4-5 houses as investments while he lived with his parents. And planned to retire by the time he was 30. So generally, a very logical and realistic type of person (??)
The majority the people I know (who have better paying and stable jobs) don't even own houses yet, which I can't help thinking is probably something they will look back upon as not exactly the wisest move they ever made
@jellykingdom: I see. So you don't know the person and saw it on the news.
It all makes senses to me now.
@tomleonhart: Mate i don't know (profanity) Barack Obama or the Greek PM either and I see them on the news all the time
Seeing more and more of these type of responses on OzB.
OP has already said their son got himself in the mess and will have to get himself out but asking for ways to perhaps reduce the debt or interest rate and in return get tens of replies basically saying "well he's stupid, personally I'm so much better than your 18 year old son because I wouldn't yada yada yada."
I'm not too sure how this situation is now but if he has found another steady job, I'd be shopping around for another loan with less interest/better terms. $22,000 isn't a lot but while he is still young, declaring bankruptcy is an option that isn't likely to greatly affect him once he's over 24/25 and it's off his credit report. Remember the bank took the risk when they leant him the money, if he honestly can't pay it back he shouldn't feel bad for the bank at all - just his credit rating.
I can't get you much help as never been in this situation before but http://www.moneyhelp.org.au/your-debt-options/ seems to be a good resource and you can even call and get advice for free.
I disagree,
Lots of people offering good advice, contact cba hardship division, etc.
Op doesn't want good advice it seems (also posted twice) seems to want people to bash the banks for lending the money and that is inappropriate, the bank did nothing wrong.
His choices are Simple leave his son to pay it back or bail his son out.
I strongly object to it being anyone else's fault or problem because it's not.
Unless you're a rich lawyer bankruptcy can have significant impact over the
Long Term. So I would advise caution there.
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I'm really interested to meet this 22 years old person owning 5 houses without a real job. Do you know him/her?