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
That's like $108,000 a year before tax. Damn.
Someone can make 6 figures and not know how to manage their finances. Go figure
@johndowy I must have missed something - did OP not say $1,500 a week? That equals $78k - did I miss a post somewhere?
Dude you can clear the whole darned debt within a year on that kind of pay.Why are you asking for tips from ozbargain?
Why weren't you working? Strange going from out of work to over 100k per year.
@K7 - it sounds like you're making around 130k/year, there should be some way to set aside your cash to pay off outstanding debts.
I dont think you'll be given another credit card in the future, but recommend to your friends/people who know you to get a limit of $2000 on a credit card so they dont end up like you.
Dont use your credit card for everything.
Spend less than you earn (hurrr durrrr)
Browse ozbargain daily, but dont purchase from ozbargain daily.
I use my credit card for everything and have no problems paying off the entire amount each month. Pay no interest.
The cash I would have spent sits in an offset account for the 50 days interest free period, so I pay less interest on my home loan, before paying the card in full each month.Credit cards are helpful to me and actually save me money, but can understand how people may get caught out…
How did you get into this situation? I would like to learn some hindsights from you, thanks!
I started with $5500 credit card and use to earn $3500 per week for sales job
They keep on increasing my credit card and I started applying other bank credit card
In 2015 my sales company went in loss and they went bankrupt by then I was in dept on all credit card 2016 ending n 2017 I lost my dad at age 56 went in complete shock and depression was working part time
Finally 2018 gave me strength n k started working full time but this debt has taken ove my lifeuse to earn $3,500 per week for sales job
$3,500 a week puts you in the top 10 percentile of income earners in Australia.
So what did you do with the $3,500 a week?
this.
OP must have led quite the lifestyle to have none of that saved in the bank, be 50K in debt, even with the hardship mentionedI was just 18 during that time
Tbh weekend,spending on clothes and eating everyday outside
I know I was dumb not to save that time but at the same time I was less matureOne important life skill that I wasn't taught anywhere in school was personal finance.
I'm not surprised there are people like this out there who are young and irresponsible with money.@K7: You claim to have been earning $300k pa at 18. LOL. I call BS. I've spent 8 years studying medicine for less than half of that. If it's true than it's no wonder why that business went bankrupt.
@Mysterymeat: There is only one type of thing I can think of someone at 18 yo can sell and make 300k pa.
@Blitzfx: True that.
Personal Finance is such an important skill.I leant from mistakes and bad habits. Banks thrive on people like me.
I have already paid them thousands in interest.I dont think it will ever be part of school curriculum; coz all Financial organisations would take a major hit.
@Mysterymeat: he meant $3500 per week before tax? Not surprised sales kind of jobs rely highly on commissions with low base salaries and that good time was probably before GFC and at mining boom. I know how crazy it was but I had seen a minesite dump truck driver earned almost a million dollars a year.
@Mysterymeat: Am I going crazy here? I'm pretty sure he said $1,500 a week above and someone thought that was $108k per year.
Now Mysterymeat is equating $3.5k per week to $300k per year - surely it's $182k per year.
@unswgeek: he was in sales, right? Never mentioned what he was selling, but I suspect it wasn't vacuum cleaners
He didn't because an 18yo with no smarts (and fairly average written english) doesn't make 3k5 a week.
Thanks K7. A follow up question - You were making 187,000/year, but once you stopped working, you accumluated huge debts. Did you not have any savings or assets prior? Did you not adjust your spending habit? With your wage before, you would have saved a considerable amount. I'm sorry about your loss, but I'd imagine with someone going through hard emotional times and not working, there would not have been huge expenses.
Nope I did not saved any penny as was very young
Some of your sentence does relate to me@K7: I'm sorry, at the start i was feeling for you, even rooting for you. But knowing you were pulling 300k/year (187k after) an spending in the realm of 200k/yr with no assets…this has got to be an almighty troll, or you need to outline how you managed to spend that $3500/wk.
Unless you never wear the same thing twice, never drive the same car for more than a month, never eat anything less than fine dining, i can't see how an 18yo could burn that.
Gambling though….I hope you dont have a gambling problem…that stacks up
Gambling and drugs are the only way this checks out…
Sorry to hear of the last few years.
Hedonic treadmill once you start earning can definitely catch you when things go south.
You have capability, you’ll make the coin again, in the interim call all the companies you have debt with, explain your story as it sounds like you may be eligible for hardship support. See if that could come in the form of reduced interest if not hold the interest for a defined period.
Reason with them but don’t just end up paying the minimum because you can. Pay as much as you physically can, especially right now.
Pay as often as you can, weekly preferable!
I usually say this to people
if your credit limit determines your spending habits, dont get one period
I started off with a $2k student credit card, I was a student for a long time, and after like 7 years after like 5 credit limit inviations which I took, I was up to $60k
it actually scared me that in case I lost my card, it could be used up to that amount
First thing to do is to speak to these people (free service).
^ This
Your issue is a behavioural problem as much as it is a money problem.
This is the best thing you can do.
FC's are completely unbiased as they are not allowed to accept referral or commission payments.
put it on the mortgage, then cut up the cards, all of them
Lol, what makes you think he has a mortgage? Regardless, no lender would take on bad external debt like OP mentioned.
what makes you think he hasn't?
Check out the Scott Pape, The Barefoot investor, his book and methods saved years of credit card pain and debt for me.
https://barefootinvestor.com/barefoot-steps/step-3-domino-de…
His book at $19 from Big W is well worth it, it's never too late to start.
Good luck!
Or free from your local library. You can even get it free online as an audio book from your library.
Or free forever on Audible sign up and cancel subscription
I just don't think financial councelling or financial websites help that much.
People who are bad with money will always continue to be irresponsible with money. Giving them credit gives them an accelerator for irresponsibility.
Telling them to spend what they have is useless.
Telling them to save 10% is useless.
Telling them to budget is useless.
The only lesson they will understand is financial devastation.
I sincerely hope the debt collectors help drive that message home for the OP.
People change people grow in 10 months I got $15k savings in my account
And I have learned my lessonInteresting. So you accumulated $15k which shows a better financial habit.
If you can do that, negotiate terms with the debt collectors and pay down. Cut up credit cards.
accumulated $15k which shows a better financial habit.
I disagree. They should have ~$0 in their savings, all should go to the loan that they're paying interest on..
If they said 'I have managed to pay $15k of the loan in the last 6months, how can I expedite the repayment process?' Then, there might be better advice and shows financial intelligence.
I disagree, they should have $2000 to $5000 in an emergency fund so that they don't need to go into further debt if there is an emergency.
Then everything else should be towards paying off the loans (hopefully after they negotiate a reduced total repayment amount as it is already at debt collectors and they probably don't expect to get 100% back)
@Stoz: Yep, that's what I meant by ~$0. I generally keep the mindset as $1000 = $0.
$15k is more than enough for an emergency fund.
Can you please help me
Yes, stop spending money you don't have.
Work your butt off, stop spending and pay off the debt
if you do go see one of these debt management companies, be wary if they try and get you into a part 9 or part 10 debt agreement (pretty sure thats what they were called). they can end up showing on your credit history in the same section as a bankruptcy, and make it very difficult for you to get credit for 7 years (mostly because credit providers don't understand what they actually are)
hey mate. call the bank up and negotiate amount owing, try to bring the debt dollar value down - which they are willing to do if you understand relationship between %debt collectors and banks. google them, you'll be able to reduce large sum of dosh.
Credit corp and Baycorp own the debt now no point calling the bank they will tell you call the debt collection company.
People that do this irritate me so much.
How much are you going to donate ?
They will likely ask for your financials so you will need to hand those over and propose something based around that.
Also I noticed you joined up just to ask this: Member Since - 21 hours 8 min
Yes true but due to so many helfull reply will return here mostly
Sorry op, just wonder what were you selling when you made heaps of monies
It was electricity door to door
I was team manager had 7 boys working under me
So I use to get commission from all that 7 guys and I was top sales rep was still knocking
Your comments do not add up. 18 year old manager ? Earning 180+k, somehow ends up with zero savings but instead racks up giant credit card debt.
Some or most of this post is made up.
That's only 180k if you consider that $3,500 per week as before tax. OP set the precedent earlier of posting his salary as post tax which would be $300,000 pa. It's complete rubbish.
@Mysterymeat: with his experience soon he’ll be working for Westpac and asking what sort of luxury car he should buy.
I started when I was 18 by 21 I was manager
Even at 18 I was making between 1200 to 1500
Contact a financial counselor they're a free service, they can represent you on behalf to creditors. Depending on your financial situation they could tell creditors to reduce the debt significantly. Another option is if you're in serious financial hardship you do have the option to withdraw funds from your super.
you know there's something wrong with the system when the self employed or self funded retiree who has cash in the bank or good assets can't get a credit card, but almost any other mug can.
op has a credit card debt problem, yet also clears $6000 a month
whats the issue here? spend around $2500 a month on rent/food etc and the rest dump into cc repayments
debt will be paid off less than 2 yrs easy
I would ask them to freeze the interest to make it easier to pay it down.
Not sure if you are trolling….
So get another credit card try nimble they do quick little loans then
Take a 1 way flight to Greece lay low for 3 months whilst you blow nimbles free money
Honestly dont pay a cent bank you are already 53k in the red your credit score is f***d so dont expect to ever get a loan just ignore it they cant do shit, it isnt illegal to not pay your credit cards back (i think) just tell them to get fukd
option 2
fake you death get family to tell the debtors you died and get a fake death certificate mail it in stay the f*** away from those banks for the rest of your life
option 3 sell a kidney to someone who is very rich and very much needing a kidney
Option 4
Did you really consider option 1 i think it is a winner Greece is still nice this time of year
Option 5.
Pimp urself, pays quite high $300 per hour…
your advice is not appreciated
Option 5-i can surely pay this debt in 2 years as I already have $15k in savings but my main concern is whether I’m future my credit history will be better
Will I be able to get approved for home loanHow have you accumulated $15k in savings but not pay your bills?!?
Don't apply for any more debt and you will in 7 years when your credit file has these removed
Option 5 is probably his best option - if you are happy to do anything for a buck there is a market for that
Im with Kaitok!
@Pastry: yeah works one’s a** off (literally) 10 hours a day. In 20 days one will be debt free with an extra 10K.
Wait, forget about ATO…
Nah you’re basically screwed for home loan in the eyes of the banks.
You dont even wanna pay back the $50K now, hence this question in OzB. How could the banks lend you an amount ten times that?
It is real funny when u have 15K in savings but dont wanna use it to reduce the debt.
I already have $15k in savings
future
home loan
Hey K7, I don't think you really understand the position you are in. Based on your level of financial literacy, you really need to just call this for help as HighAndDry suggested:
Go visit the National Debt Helpline here:
http://www.ndh.org.au
Or call 1800 007 007Explain to them the situation and take notes about all the advice they give you.
Sounds like you're the kinda guy that would type that, then recline back in his chair and go "Goddamn I'm funny"
Dude, it’s legal and earns quite high so why the f not?
And you’re not even funny I got it
They were replying to Pastry. It sounds like you and Pastry are the same 'kinda guy'.
@rompastompa: Honestly this bloke is talking shit he posted a forum titled how to not pay tax when you earn 120k a year and the modes shut it down.
He is just a troll
you think anyone would have 15k in there bank account and not pay off there debt?
@Pastry: when I came to know about this helpful forum I shared this with my relative
On their request I posted that as they don’t want to go through sign up process
15k Is to try and negotiate with debt collector for lump sum
I don’t take that in my savings
Are you a qualified financial counselor? Cause this sounds like qualified financial advice.
Self qualified
Really is there a job called finance counselor?
get money from super?
Is that even possible ?
No it is not possible
Incorrect. It is possible if the debt threatens your mortgage or other very serious issues, but you need to be unemployed to access it and @ $50K has major tax implications (It'll be considered income!)
Absolutely horrible idea
well with $50k cc debt, the interest will be like 10k a year. But yeah, you need to receive centrelink benefit or behind on your mortgage
Not possible unless you've been on Centrelink for I think 6 months and can prove hardship.
Needs to get a referral from them and once you have that you approach your Super Fund, fill out a form and wait.
Amongst many meanie responses here please consider the ones that suggest you to speak to financial counselors first.
It would appear to me you have the ability to rebuild and you should go that way but you need both emotional and physical support to go through these.
So you know you need help and you asked, now you should get the help you need based by speaking to financial counselors (See Chumlee post above)
As some alluded to, there is a deeper psychological reason for this debt, relating to your background / upbringing / grief over loss of your father. You seem young and intelligent enough, and I would strongly suggest you see a psychologist to help manage your internal state of being during this difficult time. It sounds like you reacted to the loss in a self destructive way by over spending beyond your means. You may get on top of the finances, but unresolved grief can manifest in other destructive ways. You can get up to 10 Medicare supported sessions a year and some psychologists will bulk bill or consider your circumstances. Good luck
After you pay your debt, cancel your credit cards and live with only debit cards. I never had a credit card and never will have one.
Everybody here needs to stop saying "Declare bankruptcy". It's clear nobody has a clue how it works or how ridiculous it is. The debt is not enough to even consider it.
OP is in $50k debt in credit cards. This means he/she makes decent income but lacks the ability to control their spending. The best thing for OP to do is get in touch with a financial counselor who can act on your behalf to the companies and work out an agreement. Do not entertain a Part IX or a Bankruptcy. If they do, find another counselor. Cut out vices like booze and smokes and listen to the advice they give you. You'll be debt free in a few years.
Negging for giving the proper, CORRECT advice. Nice
I wouldn't say it's the correct advice, but more the sensible option. OP can choose to pick bankruptcy if they're happy with the repercussions.
Much like certain OzBargainers here who are happy to pay $999999 extra for immediate faster shipment/delivery of whatever materialistic item they're buying rather than save it and wait a few days / 1 week for it to arrive at a cheaper price. The repercussion is a smaller bank that they seem to be happy with.
@K7: you are not in a position to buy a home in 2 years. Be realistic.
You should spend the next few years using your very decent income to pay off the debt. You can do it. Stop eating out as much, take lunch to work, cancel foxtel or whatever else you might have. Put it all towards the debt.
Once you are free of debt for a while (use this time to save) and can demonstrate financial responsibility, then you can consider a home loan. That might not be for 5 years.