Debt Management Problem

[Toni90]

Another thing is forcing your wife to work harder. Train her hard loh.

 

[lifeislonggamma]

We can't be certain that rentals will not fall and fail to cover mortgage costs.

We can't be certain that trading stocks will always be profitable (else no one will be working liow).

Treat one's wife as an economic machine long enough and one will not have a wife.

 

[OngHuatHuat]

Yes, rental cannot cover installments now for my scenario.

My wife earns very little, so cannot rely on her.

Think the best way is for me to work harder from now on.

We can't be certain that rentals will not fall and fail to cover mortgage costs.

We can't be certain that trading stocks will always be profitable (else no one will be working liow).

Treat one's wife as an economic machine long enough and one will not have a wife.

 

[OngHuatHuat]

Can only offset partially.

Currently living on dividend but dividend may not be consistent also.

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.

 

[lifeislonggamma]

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.

 

[OngHuatHuat]

Normally they will sell if the stock value keep decreasing till it is below margin level.

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.

 

[luei74]

How's your rental rate/yield per month? Yes rental yield not as good as few years back I'm afraid...

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[antonpoh]

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

Cut this first. Never loan any amount to buy stocks.

 

[OngHuatHuat]

Currently I think it is around 2.5 % only.
Sigh....
I stay in one of the Sg condos, then another condo left vacant.

How's your rental rate/yield per month? Yes rental yield not as good as few years back I'm afraid...

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[OngHuatHuat]

Still waiting to further reduce this part of debt.

Cut this first. Never loan any amount to buy stocks.

 

[antonpoh]

How much CC debt are you holding right now?

A lot of people don't understand how credit card interest are calculated. If you buy an item in Jan and charge $1001 to your credit card. Feb you pay off $1000, March the cc interest will still be base on the $1001 just because you did not pay off that $1.

 

[OngHuatHuat]

Around 150 k sgd.

How much CC debt are you holding right now?

A lot of people don't understand how credit card interest are calculated. If you buy an item in Jan and charge $1001 to your credit card. Feb you pay off $1000, March the cc interest will still be base on the $1001 just because you did not pay off that $1.

 

[BBCWatcher]

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 might sound like a broken record, but I’ll say it anyway: you’re in deeper trouble if you were to become unable to work due to a disability that isn’t severe enough to qualify for Total and Permanent Disability (TPD) life insurance payouts. Disability Income Insurance (DII) solves that problem.

I’d take a look to see what you can save if you were to decrease the medical insurance all around. As one example, if you’re both on private hospital Integrated Shield plans with “zero dollar” riders, then look at public hospital A or B1 ward Integrated Shield plans with corresponding “Lite” or “Saver” riders. (Or skip the rider completely, especially if you have ample Medisave funds already.)

To get out of a debt problem, and excluding “rain from heaven” stuff (e.g. a bequest or gift from a loved one), you’ve got four basic options, preferably in combination:

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.

 

[BBCWatcher]

Around 150 k sgd.

Ouch. So that’s on the order of $30K+/year in credit card interest ($2,500+/month), and growing?

 

[Tiger9119]

How much CC debt are you holding right now?

A lot of people don't understand how credit card interest are calculated. If you buy an item in Jan and charge $1001 to your credit card. Feb you pay off $1000, March the cc interest will still be base on the $1001 just because you did not pay off that $1.

If I am not wrong and also not so sure, the interest may start from the day you swiped the card and may also include whatever you signed after the statement date.

I overlooked a credit card statement of about $450, the interest and penalty charge were about $220. I paid within 1 week after the due date, luckily for me, the interest and penalty was waived.

 

[sg_investor]

This is a rich guy.

Monthly commitment : 12200 SGD


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

 

[limster]

This is a rich guy.

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

 

[Mecisteus]

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

Should be 15k and above.

Everyone should become a tutor.

Another show off thread in disguise.

 

[luei74]

TS should be at least Director or Senior Director rank

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[havetheveryfun]

Should be 15k and above.

Everyone should become a tutor.

Another show off thread in disguise.

he looking for ways to cut debt but yet do not wish to cut anything as per other posters' advice.. what other ways are there to cut debt ?