I have 3 credit card debt and it is taken care by credit Corp for CAB & ANZ
Baycorp for WESTPAC
Debt amount as below
Commonwealth-$22000
Anz-$8000
Westpac-$23000
Total-$53000
Very Recent figure including interest
Can you please help me to tell how can I organise lump sum amount with them.what are the best tricks and tips for it
How much percentage of total amount should be good deal to pay
CREDIT CORP-CAB & ANZ-TOTAL-$30000
BAYCORP-WESTPAC-$23000
Credit Card Debt HELP
LK7 on 06/09/2018 - 00:06
Comments
Already $53,000 in debt, with $23k of that already being in debt collectors hands (Baycorp)
Not many lenders are gonna want to lend OP money.
Credit Corp is also a debt collector I think so all banks have at least considered that they wouldn't get the total amount back.
Ah yes I missed that bit
Ouch!
Can’t credit score is bad they won’t lend me
Been there, done that.
Was in a similar situation.
$20,000 - overseas student loan
$12,000 cba CC
$2000 - ANZ ccI had 2 options:
Bankruptsy - consolidates all debt, gets on Payment plan. Very less to no interest.Stop spending/ Earn more money - this one is difficult. I had to change my habit of spending money. Planned 5 years in advance. Changed jobs a lot and worked my ass off to get promoted. I then started paying back quicker.
Oh yes, like other great suggestions here. I cooked home. Moved to a low rent apartment/ share apartment. Bought cheap liquor.
It has been 4years and 4 months since I started my plan. I will be paying back the last $1000 of credit card debt next month
NOTE: backrupsy would have been my option if this had failed
Well done for getting back on track and for sharing.
Oh forgot to mention
Car - I sold my car and started riding bike to work. This is big one, coz car drains your poket.
Fiod - My partner works at bakery; so I started getting free lunches from her
Coffee - but once a week Ann enjoyed it. The rest of the days; I use NescaféPersonal loan - you eont be able to get any; but ask your family for help. My sister took a personal loan for me, and I paid her off at low interest.
(Interest rate is the killer here. For $53000, @12% you will be paying $530/m interest only) try to move to a loan/CC with less interest rate
backrupsy
This deserves some sort of phone typing prize.
OP, it's a lot of debt but it's not enormous. Cut back drastically on your spending like @Sherminator. You say you are working full time and earning quite well so you should be able to get there. Stop drinking, eating out, everything. Just work. $1500/week after tax is plenty to sort this debt out.
Bought cheap liquor.
It's heartbreaking to hear these kinds of stories. Hopefully you can get a better bottle soon
:D
Two attempts at spelling bankruptcy, none correct. I like this attitude. Don't give bankruptcy any attention at all.
But in all seriousness.. good on you mate! Your dedication and persistence really paid off and I'm sure that attitude will rub off into other areas of your life.
@Sex: lol, yes I made sure I did everything possible before looking at bankruptcy.
Finally nailed BANKRUPTCY
@Charity:
When I was in a similar situation, I managed to find a bar that had free drinks early in the night….I got hammered!
Bankrupsy puts a molesy in your history and gets stop every time you enter the country at airport.
Many job applications would turn you down with crupsy.
Good on you. How come you didn't take the bankruptcy route?
OP at 50k debt might want to consider that route if they don't earn a lot of money or have prospects to earn in the future.
Same here I’ll be doing this and try to pay off soon but problem is how will I get home loan as my aim is 2020 starting with my partner
@K7: no chance. You’re expecting to pay off $50k of debt then get enough deposit (say another 50k) and get your credit score to a good level in 2 years.
Congratulations dude! Great work :)
@Slo20: I have to just clear this dept
Deposit 10% my partner will save rest 10% my mother will loan me which I have to return them
I did ask my mother for credit card debt but she is against this credit card and never had one for her self
Clearing debt and getting home mortgage straightaway is to keep my mind in track and being responsible don’t want to change track and go back in old daysi've never been in that much debt beyond my huge mortgage, but power to you Sherminator! i've had mates with half as much debt as you and be down and out, feeling sorry for themselves.
Good luck with your debt!
@andrgram:
K7 unfortunatly clearing the debt wont repair your credit score. Borrowing money off mum wont be enough I'm afraid. There is also the possibility that due to your credit history the bank may ask for a larger deposit. 10% is generally asked of people with good credit scores. I'd budget closer to 30% just to be sure.
I am not a financial adviser however, just things I've heard before.Congratulations on being a grown up and just imagine the discipline and lessons you've learned will be way more valuable over a lifetime than the debt itself. Good on you!
No Go see a free financial counsellor they can help u put debt in one repayment stop interested http://www.ndh.org.au/
Tips and tricks? What do you expect? You didn't keep up payments on the Westpac card so it's gone to debt collectors (Baycorp).
Not much trickery left, just pay the bloody things as soon as possible!
just pay the bloody things as soon as possible!
that plan is just crazy enough to actually work.
Could possibly turn tricks..
He never said anything about having magic skills?
How?
Its too late, once one of the cards has been sent to debt collectors there is no point in organising a lump sum, you are better off having it all go do a debt collector, then negotiating with one party to pay as little as you possibly can and also clearing the debt at the same time, they may be happy to take half to clear the debt instead of the whole or maybe just garnish wages, in the end it will end up cheaper for you.
You really should of gotten professional advice before it came to that point.
As terrible as it sounds, this is the best advice.
You're already stuffed, no point paying the full amount now.
It's good that you're proactively seeking help. There's a saying that the best time to do something was sometime in the past, but the second best time is now.
Go visit the National Debt Helpline here:
Or call 1800 007 007
These are two useful pages:
http://www.ndh.org.au/Debt-solutions/Consolidate-your-loans
And
http://www.ndh.org.au/Debt-solutions/Negotiate-payment-terms
So call them and get their advice but the basics will be the same:
Contact both debt collectors and ask if one of them will consolidate your two amounts - one set of repayments will be easier to track than two.
Make a budget, cut non-essential spending, work out how much you can pay each week or month, then use 70% of that figure. Use this figure up work out a payment plan with the debt collectors.
Make sure you stick to whatever payment plan you agree to.
Good luck.
- Make a budget, cut non-essential spending,
- Make sure you stick to whatever payment plan you agree to.
Good tips!
I mean, making a budget and cutting non-essential spending are basic life skills.
I'm earning a very decent wage, but still chart every single expense in a spreadsheet and have a monthly budget for food, entertainment, gadgets, etc. that I stick to almost religiously. As a result, I can pay double my minimum mortgage repayment each month and get rid of that debt ASAP.
If you don't budget and don't track expenses, then you're basically just flying through life blind. I just don't understand why someone would do that.
Thanks noted I’ll have a look
Bummer, how did it get that high? I dont have a CC so Im just genuinely curious
Usually people get themselves into this kind of bad debt because they are financially illiterate or they cannot control their spending habits. Also psychology of a credit card is you dont actually handle the money or see it being spent, so there is a mental disconnect that can cause debt to spiral out of control.
CC makes you spend more than what you would spend with a debit card. I never understood this until I got a credit card…
So you're one of those mentioned above who can't control their finances. Good luck with the CC.
As much as possible of my spending is through credit cards (almost everything except for mortgage really); doesn't make me spend more, because I'm aware of what I'm spending and I keep an eye on it - cash is easier, spend and forget with no record at all!
That isn't what the evidence shows.
The evidence shows that people spend more money whilst feeling that they are not spending more money. They have no sense at all that their purchasing decisions have been changed and they have no way of replaying their decisions in different circumstances to see if they are effected in any case.
@Baysew: Link broken Baysew?
I can't speak for people in general Diji, but I would be interested in seeing the evidence that you and Baysew mention. I'm only speaking in regards to myself and I concede that I'm probably not representative (I imagine most OzBargainers are not) of the general population in my spending habits or my thinking about money.
Cash spending is ultimately harder to keep track of for anyone that has a less than perfect memory, but it does take more work to actually spend and so I can imagine that act may make people more aware of it at the time and so more inclined to scale back on their spending. I feel some small amount of pain any time I spend anything at all and so don't think it impacts my spending at all, but you can't really know your own subconscious motivations and so who can say for sure.
Of more concern is that all of my wife's spending is through card and I can see she lacks my spending aversion :D
@ely: The link is correct, it goes back to your original comment. Diji1 can't provide any evidence to contradict your actual experience.
Diji1 is just ideologically opposed to credit cards.
@Baysew: Ah, I see.
I agree with Diji in a sense; most people probably shouldn't have them. I just get them for sign up bonuses, spend for a year (or less) and then cancel, never pay interest, and I don't think it increases my spending - but this is not normal behaviour.
Some international students will pay their tuition + visa fees via credit card. Once they get their PR, they pay it back.
CC gives you ability to spend more than you actually can. :-) Me and my wife both earn full time, but we just have one CC, with limit of just 8K. CC limit was upgraded to 20K by bank, but we didn't take the upgrade and leave it to 8k. We usually use Debit Card to make payments, But when payments are higher than 1k, for eg. TV, furniture, medical expenses. we use CC and pay it on due date every time. So bottom line is to use it as an asset instead of abusing it. :-)
If you're good with money, which it seems you are, every single thing you buy should come from a point earning credit card!
every single thing you buy should come from a point earning credit card
That will lose money.
Consider Bankruptcy, seriously. If you don't have many assets is really not that bad.
And not able to go to overseas?
May not be a big problem for some people. I personally did recently go overseas for a work trip, have to pay $200 to apply though.
you don't have money to pay your debt.. going overseas should be the last thing in your mind :| but not suggesting bankruptcy
Could someone please detail the advantages and disadvantages of this? For example, say OP had assets of just 10k - isn’t bankruptcy a far better option than paying it back?
Thanks
Stop suggesting this. This was a bad idea when the last person brought it up at the beginning of the thread when we didn't know OP's circumstances, it's a far worse idea now that we know.
OP is:
making decent income, this will be garnished in a bankruptcy (he might as well just make payments)
middle aged so will likely need credit fairly soon and not decades in the future, and won't have another decade to build a credit history again
AND HE ONLY OWES ABOUT 1-2 YEARS of discretionary income. Why the f*** would be chose bankruptcy when he can pay off his debt before he'd be even discharged from any bankruptcy?!
And to the rest of you - don't upvote suggestions like this when it's a serious decision and you obviously have no idea what it involves.
Yea don't give in to bankruptcy.
He didn’t suggest it. He said consider it.
He said:
Consider Bankruptcy, seriously.
In OP's position it's not an option to be considered seriously at all. On a scale of reasonable from "negotiate a payment plan" to "sell a kidney", bankruptcy is very much next to the latter.
At $50k debt, the courts won't grant bankruptcy unless there's absolutely no choice.
OP needs to go see a financial counselor who can act on his/her behalf to negotiate something on this. If they have managed to get 3 cards totalling $50K, they must have a decent income but suffer from an inability to control themselves
In Australia, I'm pretty sure you can declare yourself bankrupt over whatever amount.
You can declare it, but that doesn't make it legally so. It has to be approved by the courts first and they won't do so unless they can see there is no choice. The common thing is to order that you seek mediation first.
This is the most stupid thing to do. OP earns $92k. With that salary, he will have to pay about $15k yearly for the 3 years of bankruptcy almost covering the debt of $55k. But why do it while also limiting himself by being an official bankrupt?
Well the OP mentions nothing about salary, so I just put the suggestion out there to say consider it. Don't know if the OP has dependants either, which would greatly reduce any garnishing.
Stop visiting OzB for a while until you pay em off.
Ninja edit: Member Since 7 hours 14 min ago. Hmm
here's a tip; stop over spending.
"what are the best tricks and tips for it" - pay it off. Great trick.
step 1 - cut up the credit cards, and remove them from any sites that store it
step 2 - seek professional help
A debt agreement or personal insolvency agreement might be a better option than bankruptcy for OP. Seek proper insolvency advice.
That's not how that'll work. There's a reason why dozens of different forms across numerous industries have questions in the form of: "Are you or have you ever been bankrupt?" It's not because they care about you and are interested in you as a person.
Nope not bankrupt
Good. Stay not-bankrupt. It's an option, but it's very much a last resort option and something to think long and hard about.
@HighAndDry: can you expand this? I know nothing about it… say OP went bankrupt… what’s the downside? Not getting credit? Wouldnt that be blessing?
@AddNinja: Broad strokes: someone takes over your finances for ~2 years and can take and sell your stuff and garnish your income to repay your debts. That's the surface.
You're unable to obtain any credit for those 2+ years. You're permanently on a register, so even after that period good luck convincing anyone to give you credit.
There's more. Because of that, good luck building any kind of credit history to convince anyone to risk giving you credit.
Oh and you won't be able to run companies, if that's relevant.
There's a few situations where you can consider it:
When you're very young, with minimal assets or income, and crippling debt. Bankruptcy can help you get a new start, you have nothing to lose, and you have many years to start rebuilding your credit.
You're very old, have few assets or only assets which can't be seized in bankruptcy (e.g. expensive family home), low income, and won't likely need credit again. Bankruptcy can give you some peace from debt collectors and let you live out the remainder of your life.
You're an entrepreneur in a very shady industry so you'd never get credit anyway, you're mostly cash based, you can have others be shadow directors of companies for you, and you generally don't give a f***.
Utter last resort for someone who's basically given up in life.
@HighAndDry: For option 1, when you say you have nothing to lose, is that ignoring the part about being permanently on a register, and having to declare having being previously bankrupt when asked in a form? Because those seem like significant burdens to me
@hotdog679: In a literal sense. If you're older, you've spent likely decades accumulating assets (possible illiquid assets like property that you either can't sell in a hurry or would make a huge loss on in a down market). A bankruptcy will wipe you out, and you start from zero.
For a younger person with more/all of their productive life ahead of them, a bankruptcy takes little to no accumulated assets, and they still have time to accumulate that wealth.
You're right, they're going to be at least 5-7 years behind their peers, and they're going to be hobbled, but the effects do decrease as time passes. That young person who's bankrupt when they're, say, 21 - can be out of bankruptcy by 26 and by early middle age - 36, still have a full decade of healthy credit history behind them.
Compare that to someone who files for bankruptcy when they're 35… they'll be 50 by the time they've rebuilt another 10yr clean credit history and by then no one's going to lend to them because they're just too old to service a 30 year mortgage.
@HighAndDry: I agree with most of what you're saying but the biggest problem with having a homeloan at 50 isn't getting approval, its knowing that you might work until you die.
The average banker is just going for the sale, they don't actually give a (profanity) if you're gonna be screwed 15 years into a 30 year homeloan, even if they know its the most likely possibility.
@UnknownCamper: Haha yeah. That's the problem with having a homeloan at 50. For someone without property because they can't get a homeloan, I'm sure they'd rather see it as a "cross that bridge when they get to it" kind of deal.
How to know whether your bankrupt or not?
There's a whole court process. Believe me, you can't miss it.
Totally inappropriate for OP's circumstances. He's on a salary of >$100k…
What is your income? How much can you afford to repay each month?
Out of curiosity, how did you get into such trouble? Wasting money on Ozbargain deals? Too many Eneloops?
Past couple of years I was hardly working
But this whole year I started working full time after tax I get paid around $1500 per week$1500 a week is good money - spends as little as you can each week and pay off the debt as fast as you can - it will take a couple of years I imagine. Give the debt collectors a call and ask what you can do to pay this off as soon as possible and to reduce the interest you are paying.
Shouldn't take long to pay off. I earned the same amount as you and had a 30k car loan. Paid it off in 28 months. I set up a sensible budget and got paid monthly and as soon as I got paid I put roughly 1100 on it so that I didn't spend it elsewhere + whatever was left over from the previous month.
Do you have a home loan?
Lol no I have goal to buy one in 2 years but how will I get home loan with such bad history ?
@K7: large deposit and difficult.. Reason I was asking about the home loan was because it is the lowest interest rate. I was going to suggest refinance your home loan/line of credit and transfer the 53k to it.
@K7: I'm not sure how the banks look back on things, but if you can prove over the next few years that you can make a strict plan to repay the debt, budget and track your spending, and cut out unnecessary things to get this all paid off, then that's probably the best way moving forward.
probably get a personal loan to pay them off - should be lower interest rate