This will be kind off long.. keke

So here goes. Since 2 years ago.. i have with me a total of 3 credit cards.... and up until now.. all 3 is almost touching it's credit limit... so lets say i'm owing about RM 8,000 in total...

Yes.. i've had many late payment fines and all.. but lately.. i've been able to pay off the monthly minimum payment... but after doing so.. i'll be a bit tight during the month...

So here's the thing. I'm planning on taking a personal loan... and pay off the credit card debts, and just pay back the loan only (doesnt mind the interest of the personal loan). But i'm not sure if that is the best solution. If lets say it is... i think it'll be hard for me to get the loan approved? Becoz of my outstanding balance of the credit cards that i have, and also the late payments of last time...

any suggestions?

I've thought of going to the licensed money lender also if application with banks doesnt help, anyone here took loans from the money lenders before? Tips? advices?

Hope to hear great advices from the people of LYN. Cheers

I dont think you can get the personal loan approved. You should
1. Cut your unnecessary expenses.
2. Try to loan from family or friends with lower interest to clear as much as you can, 1k or 2k will do also. Make sure you can pay back before you loan.
3. Do credit transfer to only 1 credit card and cancel the rest.

4. Learn personal finance/money management. Dont overspend.

this is modern living trap. Apparently theres no easy way out of this. You gotta preserve and bail yourself out on this.

You'll need to pay off the CC debt and the interests + finance charges one way or another.

So, what you need to do is to find the path of lowest interest rates. Be it taking personal loan, balance transfer or what not.

When clearing the cc debt, focus on clearing the debt of the one with the highest interest rate and move down from there.

Every time you've cleared off the debt of one card, please cut it up. Ok, maybe save the last one, but control your own expenditure from then onwards.

Zombie highlights for you already. Hope you really learn from this experience. Credit card is made for convenience, not for exploitation.

A continuation in mathematical form...
Example,
Lets say you have a fix commitment to your credit card which is RM 300.
And your monthly interest charges is RM 250
Means your credit card monthly incremental would be RM 550 (300 + 250).
A person have to settle more than RM550 in order to resolve the credit card debts.

Do you settle more than amount as per stated in the example?
If yes, you are working towards to settle your credit card.
If not, how many loan you take would only increase your debt pressure.

Another thing, work towards to settle 1 credit card at a time and then exterminate the credit card. LOL
Oh yeah...work towards to settle the smallest credit amount first.

Hope this helps.

This post has been edited by arthurlwf: Aug 7 2007, 12:06 AM

1st step, take a scissors and cut your credit cards.

2nd step, knee down to your parents and beg them to borrow you money to pay off the debt and agree to pay them back.

3rd step, make a curse to yourself if you gonna exploit credit card again then your kids no sifat.

well if you can get a personal loan with interest less than your CC then it would be a start...better if you can loan from family and friends (0% interest mah)...

once you get that you have to decide which of the 3 CC you pay off first...pay off the one with the least debt first, then like everyone else says cut up the card and move on to the next and so forth until you finish off the debt...

cut down on unnecessary expenses or try to find a second job to earn more income to at least attempt to pay off the loan as fast as possible...then start all over after hopefully learning one of the most painful lessons of your life!

good luck

i did think, of taking a 10k loan, spread out into 5 yrs repayment.. monthly + interest is abt rm 260 (average out, diff bank diff interest rate)...

that 10k i take.. will be used to settle ALL the cc's...

problem is... with my current oustanding balance and repayment, am afraid most banks will not approve my loan if i applied... hmmm

potatosalad,

If you take a 10K loan, you will spend it all again. You are spending MORE than you EARN. Until you fix that, more money will not help you. You just dig a deeper hole.

Dreamer

Before you do anything, help yourself by cutting your credit card

If you still have it, you will tend to use it and the story will never end

Until you have settled your debts, don't think of credit card. it will only tempt you

Only use whatever you have and don't spend future money

Let me share with you my experience.

I faced the same problem early this year. I figured out it doesn't worth paying for the interest and personal loans is far lower than the interest charged by credit card.

I took a personal loan from HongLeong. Settled all my payment, and debt-free today. Yes, still need to pay the loan i took (spread it to 18 months).

Don't worry about the the approval. It isn't difficult to get loan nowadays. Some banks even offer a loan for you to settle your debts. Another way is do balance transfer (it is way much lower than 18% pa charged by credit card)

However, do a survey on which bank offering the lowest interest, check if there is hidden charges (like early settlement) and etc.

1-2 months back, i think RHB offering a balance transfer with quite an attractive rate. The catch is you must apply their credit card.

So there you go, do survey first. Since you just want to settle your credit card debts, balance transfer might solved your problem. Else go for bank loan (not ah longs..)

Then should get the RHB balance transfer/personal loan

then you will have 4 cc with full credit limit again
can go shopping again

Re: Rhb CC !

FROM YOUR STATEMENT ABOVE!!

banks are not helping you to settle the loan, and, they are helping you to DIG bigger hole.

hmm, in other words, they want you to DIE!



-------------------------------------------------------------------------------------------------------------------------

To Ts,

Please get the cc loan settled, and before that, cut all the cards and pay all the bills. Never ever think of any CC b4 you settled anything. Get the loan from family la.

Never ever borrow from friends....

When u mentioned facing the same problem... do u have high outstanding balance and also late late late payments for your cards?

Cause i think it will be hard to get the loans approved rite if we have many late payments? hmmm

http://smartconsumerbanking.com/category/c...nk-loan/page/4/

bro, pls visit this website....
there got quite handful information...

hmm.. i read it already..

well.. balance transfer might be a good idea... combine all my credit card balance into one... ... but if my credit limit is only 3K, how to do transfer wor? or they will come out with a new plan for u?

Ask the banks, tell them what you are facing, and they will offer you some plan. Compare all the plans and make final decision. Choose the one with least interest of course.

Easy way... call and contact this Agency.

http://www.akpk.org.my/

http://www.akpk.org.my/contact.htm

It is Government Agency that will assist you in debt management / financial advice. It is FOC.

I guess enough have been said about cutting spending & being committed to pay off the debt.

From the posting, I found that there was a GREAT MISPERCEPTION about personal loan - it WRONG to conclude that 8% personal loan is better than 18% credit card! the 8 or 12% personal loan is a FLAT RATE while the 18% credit card is a REDUCING BALANCE RATE. A 8.5% flat rate is = 18.8% annual rate per year for a 2 year personal loan, and at 12%, the annual rate is 24.9%! Now which one is lower! Bottom line - banks sell both credit card & personal loan, do you think they are not that 'smart' to price their product wrongly!

Back to the credit card debt. If I were you, I will do the following. Of the 4 cards I have, I will select one that has the best balance transfer rate (you decide the criteria), I will then 'clean up' this car and transfer all other card's debt to this card. Once I done that, I will not use that card again as payment will first goes to the BL and if any leftover, then only goes to new charges.

Here come the challenging part. Before the BL special low rate expire, you transfer to a second card (a clean 0 debt card) and enjoy the special low rate again. The ideal here is keep doing a BL until you pay-off all your debts. This is a complicated move as if required you to be very meticulous about all the date, billing cycle, etc (hey, if you really committed to settle your debt, 'these' are nothing, right!). When you do this, pay special attention to the BL fees, avoid the % based, choose those flat fee type - this is the cheapest.

Cheers