Debt Management Problem

[OngHuatHuat]

I just did a rough calculation about my debt and realize my monthly debt repayment is too high and unsustainable in the long run. To prove that I am not CSB, I have captured some screenshots about my current debt.


To put it in short, I am currently heavily in debt and appreciate any useful input to reduce my debt burden.



Here is a breakdown of my current debt:

1. UOB home loan 820 K, monthly installment: 2500 SGD

2. DBS Home loan, 438 K, monthly installment : 1543.35 SGD

3. SCB Personal loan + BT monthly repayment : 1758.48 SGD

4. Malaysia Home Loan, approximately 4000 SGD

5. Other CC debt repayment : 1800 SGD per month(inclusive of personal spending)



6. condo Management Fee : 600 per month for 2 condos



7. Stock margin loan(not repayable monthly, but interest still accrue): 600 K Sgd


Monthly commitment : 12200 SGD


My debt just keep piling up and I may face difficulty in monthly repayment should anything happen to my job.

 

[OngHuatHuat]

Someone speculated my income must be high to get such a high loan, but actually I am not, here is my explanation:

Most my debts are accumulated before year 2013, at that time, banks are not so strict about giving out loans. Like for my Uob housing loan, I just need to show them I have 200 k cash and no other debt, then they grant me 1 million loan approval almost immediately(at the end, I only took 920 k loan). Then this one 40 years loan, really serve until die.

The most recent loan for MM, it is under my wife name, but I have to pay for it since my wife not earning a lot and it was my idea to purchase that MM, so it falls under my debt as well.

Then another one million sgd is my credit card debt, personal loan and stock margin, I estimate it to be 1 million sgd but I never really do calculations. Too much until i lost track.

Basically I just borrow here borrow there lor, income not very high also, just keep working hard to pay debt on weekly basis.

Aren't u also self employed like me? Don't banks only consider 70% of yr income?

 

[mummy1234]

Just sell some properties or stocks to reduce debt and free up cash like me.

 

[OngHuatHuat]

Just sell some properties or stocks to reduce debt and free up cash like me.

Properties are meant to hold for long term, furthermore, sell now may incur a loss.

 

[mummy1234]

Properties are meant to hold for long term, furthermore, sell now may incur a loss.

Loss? For yr Malaysia properties? Even the KL one?

 

[OngHuatHuat]

Loss? For yr Malaysia properties? Even the KL one?

KL one think no loss, but HH really need some luck to sell at high.

 

[JuniorLion]

Credit Card Loans and Personal Loans are the most expensive to service.

1. Suggestion is to clear that one out as top priority.

2. Sell off one of your Condos as second priority.

The fact is that most of the time, you can't have your cake and eat it too. So yes, you may want to get capital appreciation of your condos. You can, if you are able to service the loan. Otherwise, just sell one and get a piece of mind.

 

[OngHuatHuat]

Credit Card Loans and Personal Loans are the most expensive to service.

1. Suggestion is to clear that one out as top priority.

2. Sell off one of your Condos as second priority.

The fact is that most of the time, you can't have your cake and eat it too. So yes, you may want to get capital appreciation of your condos. You can, if you are able to service the loan. Otherwise, just sell one and get a piece of mind.

Thanks for your input.

I am living in one of them then another one just purchased not too long ago, so think cannot sell yet, if not will incur SSD.



Personal loan last checked, still left 20 months.
Then the rest of the balance transfer need to clear within a few months. Stress...

 

[JuniorLion]

Thanks for your input.

I am living in one of them then another one just purchased not too long ago, so think cannot sell yet, if not will incur SSD.



Personal loan last checked, still left 20 months.
Then the rest of the balance transfer need to clear within a few months. Stress...

If you're not willing to relinquish any of your debts or try to speed up the clearing, then the next thing you can do is to hold 2 jobs.

 

[OngHuatHuat]

Yes, you are right, I think the only way out for me is to work harder!

If you're not willing to relinquish any of your debts or try to speed up the clearing, then the next thing you can do is to hold 2 jobs.

 

[little pupsky]

I hope you are adequately covered by insurance? You are in a dangerously unsustainable situation, which you’ve also acknowledged.

 

[OngHuatHuat]

Currently I have limited pay life insurance, left last 2 installments of 3 k each, will due next year and year 2020.

2 term insurance to cover my housing loans.
Then medical insurance with rider for both me and my wife

I hope you are adequately covered by insurance? You are in a dangerously unsustainable situation, which you’ve also acknowledged.

 

[hattorihanzo]

I just did a rough calculation about my debt and realize my monthly debt repayment is too high and unsustainable in the long run. To prove that I am not CSB, I have captured some screenshots about my current debt.


To put it in short, I am currently heavily in debt and appreciate any useful input to reduce my debt burden.



Here is a breakdown of my current debt:

1. UOB home loan 820 K, monthly installment: 2500 SGD

2. DBS Home loan, 438 K, monthly installment : 1543.35 SGD

3. SCB Personal loan + BT monthly repayment : 1758.48 SGD

4. Malaysia Home Loan, approximately 4000 SGD

5. Other CC debt repayment : 1800 SGD per month(inclusive of personal spending)



6. condo Management Fee : 600 per month for 2 condos



7. Stock margin loan(not repayable monthly, but interest still accrue): 600 K Sgd


Monthly commitment : 12200 SGD


My debt just keep piling up and I may face difficulty in monthly repayment should anything happen to my job.

So this is a haolian threat ahhhh? ::

 

[OngHuatHuat]

No it is not.

So this is a haolian threat ahhhh? ::

 

[little pupsky]

Huh? What’s there to haolian about? This situation may look good from the outside but is highly stressful inside.

So this is a haolian threat ahhhh? ::

 

[lifeislonggamma]

You might want to run through a few negative scenarios with your spouse to map out possible plans of action in case some things go awry.

 

[luei74]

Are you a SPR ?

Sent from Xiaomi MI MAX using GAGT

 

[OngHuatHuat]

Yes, I think I need to think of ways to reduce debt, if not the consequence can be quite disastrous.

You might want to run through a few negative scenarios with your spouse to map out possible plans of action in case some things go awry.

 

[OngHuatHuat]

Yes, I am.....

Are you a SPR ?

Sent from Xiaomi MI MAX using GAGT

 

[Toni90]

No need to reduce your debt. Housing loan should paid for itself by rental? Stock loan ok as long as trading gain more then interest. Can move to stay in small condo or stay in JB to cut cost.