Defaulted Personal Loan

[jjason_ngbs]

hi all, i would like to know the consequences on defaulted personal loan of $9.5k since 2008 from ezy cash (Now under SCB). Last time ignored all letters n after that move hse. Now i decided to pay in full. Last year i checked on my credit report, still $9.5k. Got a fews questions:

1. Any interest will be charge since 2008?
2. After full settlement, will it effect my hdb loan?

All advice welcome. Thank you very much.

 

[Perisher]

hi all, i would like to know the consequences on defaulted personal loan of $9.5k since 2008 from ezy cash (Now under SCB). Last time ignored all letters n after that move hse. Now i decided to pay in full. Last year i checked on my credit report, still $9.5k. Got a fews questions:

1. Any interest will be charge since 2008?
2. After full settlement, will it effect my hdb loan?

All advice welcome. Thank you very much.

1.Interest is very highly likely charged but only the bank can answer you this question. Strange that they never call you up to repay or froze your account...

2. Yes, it would linger for a long time and thus affect your HDB loan due to the credit rating. As for the exact length, wait for others to confirm.

Here's a link that might help
http://blog.moneysmart.sg/loans/long-take-credit-score-looks-good/
The link says it would last 12 month for a late repayment record to be clear, other more serious ones may never be cleared.

 

[chuanz]

Of course interest will be charged. If not then everybody would be doing it. Free money!!

This is from CBS report:
DEFAULT RECORDS Records of payment default as reported by lenders which are members of CBS. Default records with the status of Negotiated Settlement or Full Settlement will be displayed for 3 years from status date. For default records with the status of Outstanding, Partial Payment and Sold Off, the records will be displayed indefinitely on the report. The definition of Negotiated Settlement, Full Settlement, Outstanding, Partial Payment and Sold Off statuses are subjected to individual financial institutions’ classification.

 

[bigpelican]

the bank will not forget your debt. they will keep on sending you legal letters to you, so that they will not lose the right to claim the debt from you.

And definitely it will incur interest and legal/admin charges.

However, if you decide to repay the debt, you should be able to negotiate to waive off some of the charges.

 

[wahkao3]

dont defaultttt

 

[NewInvestor]

hi all, i would like to know the consequences on defaulted personal loan of $9.5k since 2008 from ezy cash (Now under SCB). Last time ignored all letters n after that move hse. Now i decided to pay in full. Last year i checked on my credit report, still $9.5k. Got a fews questions:

1. Any interest will be charge since 2008?
2. After full settlement, will it effect my hdb loan?

All advice welcome. Thank you very much.

Hmm. This is interesting.

First of all, the bank only has 6 years to sue you for a loan that is due (Statute of Limitations). From the day that the loan it is due, count 6 years. If it is correct that your loan was due in 2008, the bank cannot now sue you for that loan. If that is the case, you, effectively, don't have to pay the loan.

The 6 years limitation may be extended if you sign any subsequent document now to repay the loan. Therefore, before approaching the bank, it is best that you try to find out as much as you can as to whether the bank had, in the past, sued you and obtained judgement.

I know that lawyers can do such searches for you. I am not sure whether you can do that yourself. If you get a lawyer to do such a search, you might as well ask them to do a bankruptcy search to find out whether the bank had taken bankruptcy action against you. This is possible but unlikely because had you been made bankrupt, any institute providing you with a loan (for eg, HDB) would have probably notified you.

 

[jjason_ngbs]

Hmm. This is interesting.

First of all, the bank only has 6 years to sue you for a loan that is due (Statute of Limitations). From the day that the loan it is due, count 6 years. If it is correct that your loan was due in 2008, the bank cannot now sue you for that loan. If that is the case, you, effectively, don't have to pay the loan.

The 6 years limitation may be extended if you sign any subsequent document now to repay the loan. Therefore, before approaching the bank, it is best that you try to find out as much as you can as to whether the bank had, in the past, sued you and obtained judgement.

I know that lawyers can do such searches for you. I am not sure whether you can do that yourself. If you get a lawyer to do such a search, you might as well ask them to do a bankruptcy search to find out whether the bank had taken bankruptcy action against you. This is possible but unlikely because had you been made bankrupt, any institute providing you with a loan (for eg, HDB) would have probably notified you.

Tks for the advice.
I moved out of the hse n change hp which register with ezy cash. That's why i wont know what letters have been sending to me nor any bankruptcy have been filed. I also understand that yearly interest will be charge. 8yrs of interest....... cannot imagine the amounts.

 

[chuanz]

Tks for the advice.
I moved out of the hse n change hp which register with ezy cash. That's why i wont know what letters have been sending to me nor any bankruptcy have been filed. I also understand that yearly interest will be charge. 8yrs of interest....... cannot imagine the amounts.

why don't you go and get a copy of your credit report (cost a few bucks) via http://www.creditbureau.com.sg/ ?

 

[jjason_ngbs]

why don't you go and get a copy of your credit report (cost a few bucks) via/[/url] ?

Gd idea. Will do it n share.

 

[jjason_ngbs]

Default Records
Product Client Date Loaded Original Amt at Load Date Balance Status Status Date
Unsecured Peronal Loan SCB 25/07/2009 7010.34 7010.34 Outstanding 10/09/2009

Credit Score
CX

No bankruptcy proceeding

 

[chuanz]

CX: Insufficient Credit Activity

This means there is ‘very limited’ information such as Credit Applications and/or Accounts Status History as such, unable to derive a Score.

You cash is king wan issit?

 

[jjason_ngbs]

You cash is king wan issit?

Haha. Not settle. Everything must use cash liao.

Will try settle it next yr lor.

 

[kevinlaikf]

I would need some advice on my loans.
I got personal loan from banks and max-out credit cards, total outstanding 15k.

Is there any paid service which I could secure a one loan of 15k which I could payoff all and close all these service and make just one single monthly repayment for 2 years with interest.

I need a breather, I had struggled with these loan burden for over 5 years.

PS: I believe my credit history would be bad, with many late payments, it really difficult to get a proper loan.

 

[NewInvestor]

Haha. Not settle. Everything must use cash liao.

Will try settle it next yr lor.

Interesting. I suspect that you don't have to pay the main bulk of the loan if you don't want to. Or at the very least you can reach a very favourable settlement with the bank.

The fact is it is now more than 6 years since 25 July 2009.

These situations are not common but sometimes happen. Bank A buys Bank B's loan portfolio at some good price. Bank A then tries to collect what it can. They don't want to spend too much money trying to collecting small debts. Whatever they can't collect is an acceptable loss.

You should count yourself lucky.

 

[chuanz]

I would need some advice on my loans.
I got personal loan from banks and max-out credit cards, total outstanding $15k.

Is there any paid service which I could secure a one loan of 15k which I could payoff all and close all these service and make just one single monthly repayment for 2 years with interest.

I need a breather, I had struggled with these loan burden for over 5 years.

PS: I believe my credit history would be bad, with many late payments, it really difficult to get a proper loan.

I think rolling debt with debt is a really bad idea (as you have probably found out). Maybe this? http://www.ccs.org.sg/services/page/debt-management-programme

And probably attend one of their talks first http://www.ccs.org.sg/services/page/information-talk

I'm not vouching for CCS or their DMP program... but it should be something that you can consider, unless you can find somebody who would lend you $15k...

 

[Perisher]

I would need some advice on my loans.
I got personal loan from banks and max-out credit cards, total outstanding 15k.

Is there any paid service which I could secure a one loan of 15k which I could payoff all and close all these service and make just one single monthly repayment for 2 years with interest.

I need a breather, I had struggled with these loan burden for over 5 years.

PS: I believe my credit history would be bad, with many late payments, it really difficult to get a proper loan.

Have you try this ?
http://www.ccs.org.sg/

Or this
http://tcc.org.sg/loans.aspx?m=5

 

[Perisher]

best way is to talk to the banks. See what they can offer you. If not, u can approach CCS. They will look at ur debts and everything and they will come out with a solution for u and present the offer to the banks. But once the offer goes through, u have to be very diligent in making all e payments. Cos if anything breaks down along the way, usually the banks will not offer a second chance.

I used to have debts as below totalling to about 22k+

HSBC(1 card) - 4k+
Stan Chart (4 cards) - 5k+
POSB/DBS (2 cards) - 8k+
UOB - (3 cards) - 3k+
AMEX (1 card) - 2k+

Every mth, using abt 1.2k to clear. I can barely see the effect cos every mth, I am just clearing the basic with interest. In the end, what I did was, i took out a 10k loan with OCBC at a 5 year term. I used tht 10k, I clear away Stan Chart + UOB + Amex. My aim was to clear away the banks with the most cards. My loan with OCBC is abt 200+/mth at a 5year term.

In the end, I am left with HSBC, POSB/DBS. Every mth, I am able to pay these 2 banks at a higher amt which far exceeds the min+interest. After 1yr++ of payments, I am now CC Debt free.

Although I have the loan ongoing, I m definately happier nw. Cos I have extra cash in the pocket every mth and I can actually save. If i didnt take up the loan, I can tell u, till now, I will still be paying min+interest. And tht was about 1yr ago.

Firstly, u have to tell us, how much are u setting aside a mth to pay ur debts. bank + friends. next, u also have to tell us how many credit cards and with which banks. and base on ur salary, what is the max loan u can get from the banks u do no owe CC money. Only then can we go to the next step

You can find similar threads in HWZ. Most of them should give you the advise you seek.
Basically, you need to be discipline for a few years, have a stable job and income, eat,sleep,work routine should be maintain as much as possible because you must stay healthy.

 

[NewInvestor]

I would need some advice on my loans.
I got personal loan from banks and max-out credit cards, total outstanding 15k.

Is there any paid service which I could secure a one loan of 15k which I could payoff all and close all these service and make just one single monthly repayment for 2 years with interest.

I need a breather, I had struggled with these loan burden for over 5 years.

PS: I believe my credit history would be bad, with many late payments, it really difficult to get a proper loan.

First of all, I don't think any decent institution will lend you any money given your credit history. So, you will have to struggle on with these banks.

Each of the banks probably know that you owe other banks (via the credit bureau) and are trying to squeeze as much as they can out of you in case you go under. Its a stressful time for you and understandably so. But sometimes the stress comes from the fear of the unknown. What can they do to you if you don't pay at all? Well, that depends on what you have and don't have.

If you think it will be useful to you, you can PM me and ask specific questions.

 

[Perisher]

First of all, I don't think any decent institution will lend you any money given your credit history. So, you will have to struggle on with these banks.

Each of the banks probably know that you owe other banks (via the credit bureau) and are trying to squeeze as much as they can out of you in case you go under. Its a stressful time for you and understandably so. But sometimes the stress comes from the fear of the unknown. What can they do to you if you don't pay at all? Well, that depends on what you have and don't have.

If you think it will be useful to you, you can PM me and ask specific questions.

I do hope you are trying to help. Going the pm route means the majority of us here can't tell if it helps or warn kevinlaikf what you advises on.

 

[NewInvestor]

I do hope you are trying to help. Going the pm route means the majority of us here can't tell if it helps or warn TS what you advises on.

I m happy to answer TS here as well. But I don't check these threads all the time.

TS doesn't have to PM me. I was just trying to help.