Debt Management Problem

[Mecisteus]

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.

Your personal loan is a small portion of your bigger housing debt.

 

[lifeislonggamma]

Anyone need to borrow more due to WC?

你放高利貸？

 

[OngHuatHuat]

But monthly commitment for personal loan or balance transfer is much higher due to much shorter tenure.

Your personal loan is a small portion of your bigger housing debt.

 

[limster]

https://forums.hardwarezone.com.sg/...porrfolio-purchase-private-condo-5829281.html

Last month you posted that you going to buy another private condo this year? So obviously you can meet the bank TDSR requirement.

 

[Mecisteus]

But monthly commitment for personal loan or balance transfer is much higher due to much shorter tenure.

Your personal debt is a short term loan so monthly amortization has to be higher.

 

[Mecisteus]

Increasing cash flows is very easy for you.

Convert your short term personal loans into a 5 year personal loan.

See what is your objective.

Increase cash flows or reduce interests.

 

[OngHuatHuat]

This house is under my wife name, but I have to pay for the loan, since I am the one that intends to buy it.

Due to this purchase, my monthly commitment has increased, coz have to bear this mortgage loan.

https://forums.hardwarezone.com.sg/...porrfolio-purchase-private-condo-5829281.html

Last month you posted that you going to buy another private condo this year? So obviously you can meet the bank TDSR requirement.

 

[luei74]

Let say if TS failed to pay for one month, what's the consequences?

Sent from Xiaomi MI MAX using GAGT

 

[mummy1234]

This house is under my wife name, but I have to pay for the loan, since I am the one that intends to buy it.

Due to this purchase, my monthly commitment has increased, coz have to bear this mortgage loan.

How did u manage to pass the TDSR?

 

[OngHuatHuat]

Personal loan interest rate quite high, I only took once when there was a promotion, 2.88 % flat.

Increasing cash flows is very easy for you.

Convert your short term personal loans into a 5 year personal loan.

See what is your objective.

Increase cash flows or reduce interests.

 

[OngHuatHuat]

It was my wife who passed the TDSR, not me.

How did u manage to pass the TDSR?

 

[OngHuatHuat]

The consequence is quite disastrous, thenbank interest rate will become very high, so I don’t dare to try it.

Let say if TS failed to pay for one month, what's the consequences?

Sent from Xiaomi MI MAX using GAGT

 

[mummy1234]

It was my wife who passed the TDSR, not me.

Then she should pay for the MM unit. Afterall it is under her name right?

 

[BBCWatcher]

So I think my premier plus will stay with me for life.

What’s your base plan: PRUshield Premier or PRUshield Plus? If the latter, you’re in good shape from a value-for-money point of view.

It’s likely Prudential (and other carriers) are warning policyholders not to drop “zero dollar” riders because they’re afraid those riders will soon enter into a “death spiral.” Healthier people would tend to drop them, and sicker people would tend to keep them. Plus the usual interest in keeping policyholders from heading off to another carrier. You need to do what makes sense for you, whether or not it’s in your insurance carrier’s interest. Yes, if you drop a zero dollar rider it won’t be zero dollar any more, but “So what?” Maybe it makes financial sense to keep it, and maybe it doesn’t.

 

[OngHuatHuat]

Prushield premier.

What’s your base plan: PRUshield Premier or PRUshield Plus? If the latter, you’re in good shape from a value-for-money point of view.

 

[OngHuatHuat]

Coz I wanted to buy it, so I have to pay for it lor. Furthermore, she also not earning a lot

Then she should pay for the MM unit. Afterall it is under her name right?

 

[BBCWatcher]

Prushield premier.

OK. So, the reality is that coverage will be hit from about three sides in terms of premium escalation: higher private medical inflation, increases in premiums as you age, and possible “death spiral” problems with the grandfathered “zero dollar” rider. (Meaning, healthier policyholders will tend to flee to the lower cost riders over time, so the insurance company will be forced to spike premiums on the grandfathered rider.) If you’re prepared to face that triple whammy over the long haul, OK. But you’re not, not yet. You have to fix the core debt burden problems using some combination of the four methods I listed.

 

[OngHuatHuat]

OK. So, the reality is that coverage will be hit from about three sides in terms of premium escalation: higher private medical inflation, increases in premiums as you age, and possible “death spiral” problems with the grandfathered “zero dollar” rider. (Meaning, healthier policyholders will tend to flee to the lower cost riders over time, so the insurance company will be forced to spike premiums on the grandfathered rider.) If you’re prepared to face that triple whammy over the long haul, OK. But you’re not, not yet. You have to fix the core debt burden problems using some combination of the four methods I listed.

Actually from I see now, the difference in premium between these 2 products are not that big yet, not sure if i should change for my wife though.

 

[BBCWatcher]

Actually from I see now, the difference in premium between these 2 products are not that big yet, not sure if i should change for my wife though.

Yes, the big premium difference is coming.

 

[Buzy_bee]

Then she should pay for the MM unit. Afterall it is under her name right?

Just curious, what's MM unit?