27 Jan 2020
Hi Seedly Peeps,
Long story short, I have been struggle with a failed investment for the past 5 months, which resulted approx S$30k debts
I have 99% exhausted my cash, my credit card & my loans... I was thinking to pick up Debt Consolidation Plan (DCP) but it must be 12x of my monthly salary hence I am not eligible for DCP...
My CC and Loan interest are snow balling like mad and I'm really struggling af, any advice to get me out of this turmoil please?
The most direct solution is to get loans from parents and relatives.
You might not be able to get the full amount from one group but you can portion out the loan amount to make it acceptable by them to loan you.
Getting the loan from people who trust and willing to help you, YOU MUST FOCUS ON SETTLING THE DEDT FULLY and not prolong or increase the mistake.
Make resolution from this bad experiences and learn not to trust people too easily and cherish the people who help you this round.
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A) sell old stuff in carousell- every little bit helps.
B) faster grabfood or foodpanda, don't use scooter or bicycle, just walk first, earn as much as possible daily
C) small amount do the minimum repayment to the bank. If u can do at least minimum repayment, you can talk easier to them to extend the loan period or reduce interest rates.
Borrow from other banks only if
1) the new loan has a lower interest rate. If you have existing credit card, go for 6 months balance transfer promotion. The rate is usually 2-3% for 6months for balance transfer. Go google for "balance transfer". This offer will not extend to you if any banks has registered you as "bad debt" in credit bureau.
2) you have an existing job, so the 6 months loan promo helps you to extend the deadline for another 6months while you work and save.
3) extra job to earn more and repay faster
4) Do NOT ever skip any repayment amount. Pay the minimum AT LEAST
(more if possible). This is very important to signal to the bank you are not a bad debtor. If you have bad debt, it is going to take huge effort to restore your credit assessment, and woes on you later for property or car loan
5) If you need to borrow from relatives, borrow with every intention to return. If you do not return, the lost amount is nothing compared to your reputation loss... forever.
Draw out a reasonable plan, show them you can repay them $X amount per month, for how many months, and perhaps offer a slight interest that is lower than what you are paying now.
Calculate and prepare all these before approaching relatives or friends, this will at least show that you are prepared.
And most importantly, obey your debt obligations.
You need your friends and relatives to come off in 6months or 12 months thinking "ok this guy not bad, i helped him and i did not regret helping him".
Its okay to borrow money, but if you do not repay them, the trust lost will
destroy relationship, ESPECIALLY among relatives.
EDIT I will like to add, the debt is manageable- $30k can be repaid off in 2 years.
If not, go for GrabFood or Foodpanda or etc.
Hardwork can pay off $30k. Sweat a bit.
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