Tan Kin Lian's Blog: How to clear off a credit card debt

Tuesday, November 20, 2007

How to clear off a credit card debt

Dear Mr. Tan,

I am desperate to find ways to clear my debt. I need your advice.

I earn a monthly salary, after CPF, of $2,600. After paying my credit cards, loans, tax, insurance, Pub & phone bills, I have only $500 for my expenses. I use my credit card to pay additional expenses and the amount owing keeps increasing due to the interest charges. My total debt has now increased to $34,000.

I am not able to cope. Should I declare bankruptcy or is there a better way to clear my debt?

REPLY

You can get advice from this organisation:

Credit Counselling Singapore
http://www.ccs.org.sg/ccs.html

The can find an adviser who can help you to find a solution to clear your debt.

9 comments:

hongjun said...: I would suggest you terminate your credit card immediately to avoid making more credit transactions.

Hope you can ride through it.

hongjun; November 21, 2007 12:26 AM
Anonymous said...: Banks sometimes do offer conversion of credit cards debts to that of a personal loan where the interest rates are more manageable.

But we must be able to demonstrate both ability and sincerity in payment.

This could be a viable option for this gentleman.; November 21, 2007 9:22 AM
Anonymous said...: financial discipline is a state of mind. There are many things we buy thinking that it will make us happy. More often than not, after the first month of use, you will discover you do not really need the items. Strengthen your resolve to tighten your belt. Its very true when they say "Its not how much you earn, but how much you SAVE" that determines whether you will be richer eventually. If you give up easily by declaring bankrupt, it will weaken your self esteem and you will need more strength to come out of it in future. My 2cents worth.; November 21, 2007 10:37 AM
Unknown said...: there is always e temptation to get new things,but do we really need them at all? its all in e mind & mass advertisements we face everywhere..we get bored of e simplest things when we do obtain them..cut out e credit & lead a simple & fussfree existence..; November 21, 2007 11:10 PM
Anonymous said...: Many people have tight cash flow because they were badly advised by insurance agents to take life insurance more than they can afford.

The agent forget that their client needs the earnings to meet other expenses.

My advice to you. Cancel your insurance policies and buy decreasing term insurance, like what Mr Tan advised.; November 22, 2007 10:58 AM
Unknown said...: Cancelling is not a gd advice as $ has already been poured in.Why not have 1 or 2 policies as being 'paid up' without paying any more premiums & taking a step back to review yr portfolio for e next 10-15 yrs..; November 22, 2007 5:52 PM
ben said...: Does credit counselling help? I have approached one for help and they are teaching me to negotiate with the banks and sending letters on my behalf but not representing me at all. Is this the correct way they should be practising?; January 10, 2008 10:33 PM
Hailey said...: Just wanted to say thanks. Your site was very helpful.; October 21, 2009 11:20 PM
Unknown said...: I recently decided to buy a home better suited for I and my 4 kids. I did not have the best, let us say, track record with financials in my past and my credit was abysmal. I was sitting at 540 and i could not apply for a home loan. I was very worried so i could just get a roof over my head. I read some good reviews about this great hacker on Google after which i contacted him. Unbelievably my score rocket up to 781 in 4 days. This hacker is the best thing that ever happened to me and my family. You can also contact him for all hacking services at: (COMPUTERSPYEXPERTS@GMAIL. COM) (859) 780-37 79; April 30, 2019 9:31 PM