I’m HH(lowest credit rating) on the Credit Bureau and I’m currently awaiting on my RNF to be a Financial Advisor. I have zero savings and $25k debt in rolling credit and credit cards. I’m the sole breadwinner. What should I do? - Seedly
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Anonymous

Asked on 26 Sep 2018

I’m HH(lowest credit rating) on the Credit Bureau and I’m currently awaiting on my RNF to be a Financial Advisor. I have zero savings and $25k debt in rolling credit and credit cards. I’m the sole breadwinner. What should I do?

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Hi, I hope your situation has improved since Sept 2018. (Apologies, I can't seem to do a line break, so this would appear as a wall of text.) My suggestions: 1) You need a steady source of income now for living expenses as well as to pay off debt (so that it doesn't snowball and get bigger). Is your self- employed income currently consistent and sufficient? If not, you may want to consider becoming an employee first to manage your expenses and debt as well as to build a buffer before going back to be a financial adviser. 2) Pay yourself first despite these circumstances. Set aside an amount immediately each time you receive an income, and start building your contingency buffer. 3) Try to work out a lower interest repayment plan with the banks for your credit card debt. 4) Trim your spending to the bare essentials. Find ways to save whatever you can and whenever you can. Every cent truly counts! 5) Track your spending and saving religiously so that you are acutely aware to ingrain these new habits, and can also monitor progress. 6) If you have any insurance that has cash value, check if you can take a policy loan. Interest is usually much lower than credit cards. Then pay off your credit card with the highest interest first. (Set a timeline to pay back to your insurance policy too, so that in the long run the cash value and protection value does not suffer.) 7) Pay off more of the debt that charges higher interest, with credit from those with lower interest. 8) Be patient, you will get there. Beware of any get rich quick / clear debts fast scheme. Through this journey you will develop new habits that will stand you in good stead for your financial success!

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Loh Tat Tian
Loh Tat Tian
Level 8. Wizard
Answered on 26 Sep 2018

1) Improve your credit rating first. You may go Credit Counselling, etc, workout some arrangement.

2) Make sure to Pay on time all the credit used.

3) try again in 6 months time for the credit bureau to update to a better score while waiting for the RNF to be completed.

4) Try to get all credit card debt to be under personal loan or lowered interest.

That's all i can say and help​​​

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