Consolidating Loans

[kooky911]

Just seeking some opinions on whether this is the right direction to head to for my current situation.

Im currently getting $2,400 after CPF deduction
I got 2 credit cards, 1 is with DBS which has an outstanding of $10400 while the other is Citi Clear Card at $500.At the same time I have 2 installment plans with Courts which sums up to $4000.

For my citibank card every month I managed to pay $550 and the DBS credit card I pay $1000 but at the end of the month I will still spend it the cards. For my courts, the monthly installment, I pay is $500.

Now my other half has decided to settle down and I need to start saving but with the amount I am paying for the credit cards, I am never going to save. I am thinking of consolidating all my credit card debts and also the Courts installment and spread the payment over 3 years while I have more money to start saving.

Please advise what I am doing now is appropriate?
Cause I need to save at least $18000 by next year end.

 

[lusunshine]

the other is Citi Clear Card at $500.

For my citibank card every month I managed to pay $550

I don't get you on this part

 

[crissangelz]

you need to save $18,000 by year end and your outstanding loan amount is only $4000, in that case faster pay off your loans so you can save at least $14,000?

 

[archcherub]

TS, dont bother about saving cash when u have credit card debts.

Savings earn u 0.25% while u r forking out 24% annually on credit card debts.

Keep a small amount of cash for daily expenses, and dont bother to save, just clear your credit card debts AS MUCH AS POSSIBLE.
If you can, take personal loans to repay credit card debts (personal loans only 5 - 6%) or transfer balance to other creditcard to reduce interests.

No point keeping an emergency cash fund when you are already in such situations. when a truly emergency hits, then its not too late to ask for friends or take personal loans.

Don't indulge in luxuries or expensive meals for 1 year... (or perhaps only mid-range restaurants once a month?)


Keep out of credit card debts, it literally bleeds you.....

 

[antonpoh]

First, cut all the credit card. You're not responsible enough to use it yet.

Reduce your expense to $600 (for me i can push this down to $450, it's possible). The rest pay off your credit card. Find things that you don't need, try and sell it away. (example spare mobile phone, expensive watch)

If you have endowment insurance plan, maybe can call them and ask if you can draw out some amount from there. They charge 6%, use it to pay off the 24% interest.

$1800 x 10 mth = $18000 (saving)
Since you need 10 months to save that amount, you will need to finish repaying your credit card by Jan or Feb next year.

 

[strawberrypicker]

Yes it's better to consolidate ur debts. It will be easier to manage. U will know exactly how much u need to pay that one loan every month and how much to keep aside for savings. However remember not to add more to the debts. Ie using making use of ur credit card again.

U will just end up with more n more debts