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.
I would suggest you terminate your credit card immediately to avoid making more credit transactions.
ReplyDeleteHope you can ride through it.
hongjun
Banks sometimes do offer conversion of credit cards debts to that of a personal loan where the interest rates are more manageable.
ReplyDeleteBut we must be able to demonstrate both ability and sincerity in payment.
This could be a viable option for this gentleman.
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.
ReplyDeletethere 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..
ReplyDeleteMany people have tight cash flow because they were badly advised by insurance agents to take life insurance more than they can afford.
ReplyDeleteThe 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.
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..
ReplyDeleteDoes 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?
ReplyDeleteJust wanted to say thanks. Your site was very helpful.
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