Need help (Bank Loan)

[firefox92]

Hi all, I really need help. I have an outstanding bank credit balance of $5869.60. Applied this 5 years ago. And also, today I received an SMS from bank telling me to pay an amount of $331.77 for overlimit.

The snowballing interest rate is giving me headache. My solution is to get another bank and apply for a cashline and repay these amounts at one go, and then repay this new cashline at a monthly rate. Basically like starting anew but at a comfortable rate.

I am very tired. Can anyone give me an advice what should I do? Will my solution help?

 

[BabyTurkey]

This is the wrong forum. But anyway I would suggest first thing to do is to contact your bank to ask about debt restructuring options. They can work out a repayment scheme based on your financial situation. Google for "debt relief schemes in Singapore"

Borrowing from another bank does not solve your problem, particularly since interest rates are rising. You'll probably end up paying even more.

 

[jaloon]

Refer to this forum instead.

 

[hclee01]

Hi all, I really need help. I have an outstanding bank credit balance of $5869.60. Applied this 5 years ago. And also, today I received an SMS from bank telling me to pay an amount of $331.77 for overlimit.

The snowballing interest rate is giving me headache. My solution is to get another bank and apply for a cashline and repay these amounts at one go, and then repay this new cashline at a monthly rate. Basically like starting anew but at a comfortable rate.

I am very tired. Can anyone give me an advice what should I do? Will my solution help?

You can refer to the following modules to understand the options available for you to do debt free:

a) Debt Consolidation Plan:
https://forums.hardwarezone.com.sg/threads/debt-consolidation-plan-part-2.6035250/
b) Debt Management Plan:
https://forums.hardwarezone.com.sg/...-by-credit-counselling-singapore-ccs.5821687/
c) Debt Repayment Scheme:
https://forums.hardwarezone.com.sg/threads/debt-repayment-scheme-drs-official-assignee.5981024/

 

[a4973]

Inclusive of the over limit fee it's $6.2k. why not borrow from a family member to pay it off once and for all rather than prolong the issue by looking for other schemes ?

 

[wira]

normal bank unsecured loan cashline will still charge around 20%-30% p.a.

Not advisable esp if you cant repay within short period

 

[Fishdim]

Hi,
Do you have credit cards that you do not use often? You can do balance transfers of your unused credits, most banks offer 0% interest + X% processing fees OR X% interest + 0% processing fees. The interest / processing fees are charged 1 time upfront and you have up to 6 mths / 12mths (depending on what repayment plan you choose) to pay off the balance transfer amount. Idea of this method is to lock-in the low interest / processing fees so that you don't get recurring interest charged. You may want to call up banks to check if there are any promos. A CSO ever told me usually they don't publish the promos, must call to check.

Just for ref. I am offered by Maybank 6mth balance transfer for 9K at interest 2.5% p.a (0% processing fees) which amount to $112.50 charged upfront.That's it, no other charges.