Debt Management Problem

[Sinkie]

If I remember correctly, stocks held in a margin account does not legally belong to the account holder. The broker has the right to sell them without asking for the account holder's permission.

This might be something to take note of when planning for the disposal of assets.

Are you sure? Lol

 

[hattorihanzo]

he's trying to tell you that his after-tax take home pay is at least 12,200 SGD a month.

Already say it’s a haolian threat already what

Everyone still feeding this troll

 

[OngHuatHuat]

If really so high, then I won’t be worried anymore.

he's trying to tell you that his after-tax take home pay is at least 12,200 SGD a month.

 

[OngHuatHuat]

Banks give out personal loan or cc debt without considering your existing housing loan, that’s why it is possible for your monthly commitment to be above monthly salary.

Should be 15k and above.

Everyone should become a tutor.

Another show off thread in disguise.

 

[OngHuatHuat]

Ohh man, you are strong, I have thought of all the 4 points that you mentioned and I am taking similar measures to cut debt.

1. It is getting harder as the debt load rises, still thinking of ways to get better deals for my debts.

2. Yeah, I have sold some assets in the past, may do so again in July.

3. Actually I have already rented out a room and all other properties, now still looking to lease the small condo after I get it.

4. I cannot really change my hospitalization plan since I was admitted once in year 2010. If I were to change my plan, then the pre existing condition won’t be covered anymore.

1. Reduce the cost of that debt through refinancing, renegotiated terms, etc. It looks like you’ve done some of that already. The DCP (Debt Consolidation Program) is another possible option. This’ll be somewhat harder given generally rising interest rates.

2. Sell assets, and use the proceeds to pay down debt, starting with the highest cost debt. In Singapore that’s typically disposing of private cars and real estate.

3. Raise income, e.g. through renting out a room, having a spouse increase his/her work hours, taking a second job, etc.

4. Reduce spending. Adjusting medical insurance coverage is one such example, but other examples include skipping vacations (particularly expensive ones), turning down the air conditioner, avoiding restaurants and cafes, avoiding taxis and driving in favor of public transit, and so forth.

Which combination looks most promising now?

Acting earlier, and with emphasis, is better than later and weaker. Debt that’s burdensome generally gets more burdensome over time.

 

[OngHuatHuat]

High debt commitment is not rich!

This is a rich guy.

 

[BBCWatcher]

4. I cannot really change my hospitalization plan since I was admitted once in year 2010. If I were to change my plan, then the pre existing condition won’t be covered anymore.

No, that's not correct. Policy downgrades are allowed without a pre-existing condition reset as long as you stay with the same carrier. Confirm that with your carrier, of course.

For example, let's suppose you both have a private hospital Integrated Shield plan with "zero dollar" rider. Any of these adjustments are possible without pre-existing condition resets, for either/both you and your spouse:

* Private hospital Integrated Shield, "Lite"/"Saver"/"Assist" rider
* Public hospital A ward Integrated Shield, corresponding full/"Lite"/"Saver"/"Assist" rider (if offered)
* Public hospital B1 ward Integrated Shield ("as charged" if offered or "Standard Plan" if not), corresponding rider (full/"Lite"/"Saver"/"Assist" if offered)
* Public hospital B2+ ward Integrated Shield with corresponding "Plus" or "Assist" rider (only available if your current carrier is NTUC Income)
* Any of the above options without any rider

If you think you and/or your spouse will inevitably make this sort of adjustment anyway due to escalating premiums (medical inflation and age), then you might as well make that adjustment now.

If you have a relative abundance of Medisave funds, a rider adjustment is practically a no brainer. If you and/or your spouse are content with a lower hospital ward class than you're presently insured for, then a base policy adjustment has merit, especially if you're going to try to carry a rider along with it (because cash rider premium levels correlate with the type of base plan you have).

Some "hard" decisions will need to be made, clearly, and this set of decisions might not be so hard.

he's trying to tell you that his after-tax take home pay is at least 12,200 SGD a month.

Inclusive of (taxable) rental income, it would appear.

I don't think yyhwin is trying to boast or brag, because practically any "idiot" can assume tons of debt to finance assets which then generate a 4 or 5 digit but still inadequate cashflow. (Not saying you're an idiot, yyhwin. Plenty of smart people get too deep into debt.)

 

[OngHuatHuat]

Maybe I should try ask Prudential about this, but it doesn’t help much actually.

I think I gonna lead a minimalist lifestyle.

No, that's not correct. Policy downgrades are allowed without a pre-existing condition reset as long as you stay with the same carrier. Confirm that with your carrier, of course.

For example, let's suppose you both have a private hospital Integrated Shield plan with "zero dollar" rider. Any of these adjustments are possible without pre-existing condition resets, for either/both you and your spouse:

* Private hospital Integrated Shield, "Lite"/"Saver"/"Assist" rider
* Public hospital A ward Integrated Shield, corresponding full/"Lite"/"Saver"/"Assist" rider (if offered)
* Public hospital B1 ward Integrated Shield ("as charged" if offered or "Standard Plan" if not), corresponding rider (full/"Lite"/"Saver"/"Assist" if offered)
* Public hospital B2+ ward Integrated Shield with corresponding "Plus" or "Assist" rider (only available if your current carrier is NTUC Income)
* Any of the above options without any rider

If you think you and/or your spouse will inevitably make this sort of adjustment anyway due to escalating premiums (medical inflation and age), then you might as well make that adjustment now.


Inclusive of (taxable) rental income, it would appear.

I don't think yyhwin is trying to boast or brag, because practically any "idiot" can assume tons of debt to finance assets which then generate a 4 or 5 digit but still inadequate cashflow. (Not saying you're an idiot, yyhwin. Plenty of smart people get too deep into debt.)

 

[OngHuatHuat]

Yes, I need to tackle this problem of inadequate cash flow.

What I can do now is just put in more disposable income to repay my debt... every single cent counts

I don't think yyhwin is trying to boast or brag, because practically any "idiot" can assume tons of debt to finance assets which then generate a 4 or 5 digit but still inadequate cashflow. (Not saying you're an idiot, yyhwin. Plenty of smart people get too deep into debt.)

 

[OngHuatHuat]

Huh? This thread is very real since I always GPGT.

Already say it’s a haolian threat already what

Everyone still feeding this troll

 

[BBCWatcher]

Maybe I should try ask Prudential about this, but it doesn’t help much actually.

Well, let's take a look.... I'm going to assume the following, but adjust accordingly:

* You age 45 next birthday, spouse age 40 next birthday
* Both with PRUshield Premier with the standard PRUextra Premier rider
* Your spouse qualifies for a 20% rider discount, but you do not based on claims

With these assumptions, your current combined annual premiums are $876 (base plan, amount above MediShield Life premiums, currently fully Medisave payable) and $1,610.40 (rider, cash only).

If you were to adjust to PRUshield Plus (public hospital A ward coverage) with PRUextra Plus Lite rider, then your combined annual premiums would come down to $332 (base plan, above MediShield Life, Medisave payable) and $369 (rider, cash). Cash savings alone would be $1,241.40/year in this scenario.

What do you lose? Not much: private hospital coverage (but you still enjoy single bedded ward in public hospitals), and zero dollar coverage (you would be responsible for a $1,750 deductible, usually mostly or entirely Medisave payable -- and with more cash and Medisave available to handle that -- and then PRUextra Plus Lite kicks in to cover the rest of the normal deductible and all co-pays).

 

[OngHuatHuat]

Ohh, actually I am 34 next birthday and my wife is 33 next birthday.

I received a sms from Prudential weeks back, told me they are not offering full rider anymore, so urge us not to change our policies.
So I think my premier plus will stay with me for life.

Well, let's take a look.... I'm going to assume the following, but adjust accordingly:

* You age 45 next birthday, spouse age 40 next birthday
* Both with PRUshield Premier with the standard PRUextra Premier rider
* Your spouse qualifies for a 20% rider discount, but you do not based on claims

With these assumptions, your current combined annual premiums are $876 (base plan, amount above MediShield Life premiums, currently fully Medisave payable) and $1,610.40 (rider, cash only).

If you were to adjust to PRUshield Plus (public hospital A ward coverage) with PRUextra Plus Lite rider, then your combined annual premiums would come down to $332 (base plan, above MediShield Life, Medisave payable) and $369 (rider, cash). Cash savings alone would be $1,241.40/year in this scenario.

What do you lose? Not much: private hospital coverage (but you still enjoy single bedded ward in public hospitals), and zero dollar coverage (you would be responsible for a $1,750 deductible, usually mostly or entirely Medisave payable -- and with more cash and Medisave available to handle that -- and then PRUextra Plus Lite kicks in to cover the rest of the normal deductible and all co-pays).

 

[OngHuatHuat]

Full rider means they pay the 10 % and give us daily allowance if we chose to stay a lower grade ward.

 

[OngHuatHuat]

I still keep the sms.

 

[OngHuatHuat]

https://www.prudential.com.sg/en/campaigns/prushield-ad/

 

[Nofear40]

If really so high, then I won’t be worried anymore.

Can sell your condos and stay in HDB?

 

[OngHuatHuat]

It is a choice but most likely my family will object to it and it is hard to dispose the properties on hand within a short time.

Can sell your condos and stay in HDB?

 

[little pupsky]

Family as in wife will object to staying in a HDB? So she wants to stay in a condo but doesn’t pull in enough financial resources to help with the mountain of debt? Wow.

 

[OngHuatHuat]

Object to suddenly move house.

She got contribute 300 per month to household expenses, but I paid for all the bills.

Family as in wife will object to staying in a HDB? So she wants to stay in a condo but doesn’t pull in enough financial resources to help with the mountain of debt? Wow.

 

[SBC]

Anyone need to borrow more due to WC?