i got 1 million of debt, what shall i do?

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i got 1 million of debt, what shall i do?, debt& financial planning

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HuiChyr	Nov 12 2014, 01:09 PM Return to original view \| Post #1
On my way Senior Member 567 posts Joined: May 2009	QUOTE(homosapien8888 @ Nov 10 2014, 06:36 PM) hi , my debt is about 1 million, hope to get advice from sifu here i got 50k cash now, how should i use it now? house 1 , debt 443k installment 2600/month , interest rate blr-2.3 - no rental personal loan 41k, 24 month now left 18 month , rm1815, interest 3.13% house 2, debt 460k - DIBS, will need to serve the installment 1Q 2015, installment about 2.1k a month, BLR-2.4 car loan , 100 k , interest 2.48 % monthly installment 1874, 5 year, how should i restructure my debt? my income to debt ratio is 90 % at this moment Well, u are already in a hole u cannot come out from.... why not dig deeper? Refinance both houses and dump into by 2 more houses/condos. So you hv 4 hs ... rent it out Only when you got into REAL financial problem. Come back here for advise again.
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HuiChyr	Nov 23 2014, 04:22 PM Return to original view \| Post #2
On my way Senior Member 567 posts Joined: May 2009	QUOTE(Maneki-neko @ Nov 23 2014, 03:29 PM) Where got fun by just taking 41k PL only? Should borrow at least 500k to buy high end D seg car (there's nothing to shout about your new Korean or Jap car), buy Hermes bags for your wife (since she loves u very much), n can use the balance to travel for a month (not enuf leave? Well, u can opt for unpaid leaves). Then this is what we call fun hahaha ... good one.
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HuiChyr	Nov 25 2014, 12:05 PM Return to original view \| Post #3
On my way Senior Member 567 posts Joined: May 2009	QUOTE(Lucas0323 @ Nov 25 2014, 11:26 AM) Does that means the prepayment money will only hold by the bank and not directly pay to developer? Developer is already out of the picture once the property is completed and handover to customer. The financing part is only between the bank and buyer (prop owner). Prepayment comes in many form but let me explain in flexi-home loan for better understanding: Let say you have outstanding loan balance (OS) of Rm100k. You have Rm20k cash you wanna pre-pay for the loan. So your OS becomes Rm80k. The day Rm20k was credit into your loan account, the interest calculation is base on the new OS of Rm80k. The next day you wish to take out Rm5k from the pre-pay of Rm20. Your new OS is now Rm85k. And so the interest is calculated on Rm85k. Property loan interest calculation is on DAILY rest. Like FD is on ANNUAL rest. Compounded DAILY or ANNUALLY. Can you imagine (hypothetical) FD is 3% on DAILY rest. Your money + interest is compounded DAILY. You make a lot of money. But banks wanna make money mah .... so here is the real scenario LOAN: Rm100k. Interest: 4% per annum (Compounded DAILY). 12 daysto make Rm4,074. WRONG LIAO ... SORRY FOR INCONVINIENCE FD: Rm100k. Interest: 4% per annum (Compounded ANNUALLY). 12 months to make Rm4,000 Understanding this concept of bank calculation, don't you think PRE-PAYMENT is a better option? Many will look at interest per annum only but with TIME factor, banks will always beat you to the game. This post has been edited by HuiChyr: Nov 26 2014, 12:02 AM
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HuiChyr	Nov 25 2014, 11:40 PM Return to original view \| Post #4
On my way Senior Member 567 posts Joined: May 2009	QUOTE(meejawa @ Nov 25 2014, 04:48 PM) Wrong=> LOAN: Rm100k. Interest: 4% per annum (Compounded DAILY). 12 days to make Rm4,074. That's TRUE ... It's wrong calculation. Will try to find the formula and present here again. Sorry. But one thing for sure... compounded DAILY sure make more money. Hmmm... I use Excel make simple calculation ... 4%/365 days.... Banks make Rm4,080 after 365 days = 12 months... So bank make only Rm80 more than FD...on a RM100k principal? Wah lau .. how bank pay for operation cost? Sigh ... you tell me how to count la. This post has been edited by HuiChyr: Nov 25 2014, 11:47 PM
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HuiChyr	Jan 22 2015, 08:56 PM Return to original view \| Post #5
On my way Senior Member 567 posts Joined: May 2009	QUOTE(Artus @ Jan 22 2015, 12:22 AM) If the properties are condos, then can easily rent out lah to cover the monthly payment. Houses? Good luck renting out to cover your monthly payment. Also "high valuation" of landed properties all mostly bullshit one. You have to depend on another greater idiot to take over from you then only you can exit. True to that ...
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