Personal loan

[Fatcat89]

Would like to inquire how to go about getting a formal IOU for a personal loan from friend. Parents incurred huge CC debts up to 100k and need to find friends to loan to solve asap or interest is killing. Any options for loans too?

 

[Fatcat89]

Anyone? Also any good loans I could take up to replace some of these CC debts to incur lower losses to interests?

 

[lzydata]

Have you tried balance transfers?

 

[Fatcat89]

balance transfers not really good imo as its from CC to CC, bank loans are lower int rate < 20% which I feel is a better option + there is a min payment monthly that clears principle amt. CC min payment only clears interest which is total BS. Currently my parents have income around 100k annually, so if pay slowly can clear, its just the interest from CC that is making it even slower... and also my parents tend to pay just min. cant stand it..

 

[lzydata]

Actually the effective interest rate for balance transfers are not as high as for credit cards. For example, DBS's EIR is around 5% pa, in the form of a one-off admin fee. However, I don't know about the T&Cs so I am not sure if your parents will qualify.

Cashline Balance Transfer, Balance Transfer, Extra Cash, Low Interest Loans | DBS Bank Singapore

If you can arrange some kind of refinancing by balance transfer or something like that, that is the first step, but the next one will have to be: get them to pay as much as they can every month, not just the minimum. The lower interest rate will not apply forever.

 

[Mecisteus]

EIR for BT (6 months) are usually <3% pa
EIR for personal loans (1 to 2 years) <7% pa

just visit the credit cards section to learn more. if you read further, 0% pa (no joke) is also possible.

 

[Fatcat89]

Noted, Thanks for the info guys. So that means the balance of transfers uses up the credit limit on my current credit card?

 

[rza29]

................

 

[Dividends Warrior]

Wa......credit card debt is no joke

 

[chopra]

Wa......credit card debt is no joke

pls borrow from citibank. 27percent per annum. lol.


/vested lol

 

[hwmook]

prob with balance transfer is tat the other card also must have available funds. for me all my limit are maxed out...feel like dying already and banks dun really offer enuff secured overdraft against property...otherwise i can use property to secure a huge loan like your parents...it is not easy to get loan from friends...i have asked quite a number of people and most gave me reasons cant lend...some good friends were still able to lend a lil bit but can only pay them off slowly...

You are just asking for it by spending so much and not paying back.

 

[fire]

Best to send them to ccs... They need the counselling and help to work out a plan with the banks to waive interest n arrange monthly payment.

 

[Fatcat89]

CCS not an option as my mom holding a job handling company's finance, CCS expose situation to her company, she probably cant hold onto the job. Anyway currently negotiating to convert CC debts to loans, much lower int rates. but still nt enough monthly to cover all cards so need the loan from friend, til nw no one offer me advice hw to go about with the legal IOU statement, engage a law firm to do it or???

 

[archcherub]

CCS not an option as my mom holding a job handling company's finance, CCS expose situation to her company, she probably cant hold onto the job. Anyway currently negotiating to convert CC debts to loans, much lower int rates. but still nt enough monthly to cover all cards so need the loan from friend, til nw no one offer me advice hw to go about with the legal IOU statement, engage a law firm to do it or???

yeah go for a law firm, just call the small firms, but 1 IOU probably costs u a thousand plus
alternative, go for close friends and relatives that dont need IOU but u better pay them back.

meanwhile officially, better do balance transfer, or cash out ur stocks, fixed deposits, savings to pay the credit card debts. use ur savings to clear debt! dont just do the minimum payment.

credit card debts incur huge interests...

 

[Skypower]

If *close relative/frenzs, there is usually no need for IOU.

1st thing to do is to clear CC debt, get bank loan or other legal loan quickly.
2nd is Self reflection for those who create the problem.

 

[gobbyyy02]

Actually the effective interest rate for balance transfers are not as high as for credit cards. For example, DBS's EIR is around 5% pa, in the form of a one-off admin fee. However, I don't know about the T&Cs so I am not sure if your parents will qualify.

Cashline Balance Transfer, Balance Transfer, Extra Cash, Low Interest Loans | DBS Bank Singapore

If you can arrange some kind of refinancing by balance transfer or something like that, that is the first step, but the next one will have to be: get them to pay as much as they can every month, not just the minimum. The lower interest rate will not apply forever.

is getting a BT or personal loan better?

 

[lzydata]

Get a room, you two spammers!

 

[hwmook]

BT interest is sky high if you dun return within the given time frame. You interested to try in a small capital big return low risk investment? the amount is as little as 2k. text me at 9299-0208 if you are interested. I am not active online, just happen to see this post.

Get lost lah, scammer. If money is so easy to earn, you would not be here scamming.

 

[JustForFunn]

Heys.

Credit card charges around 24% interest per annum on unpaid amount, i.e. to say 2% per month, even if you made minimum payment for the month.

Balance transfer I agree charges very low interest, 1% or even free, but for only 3-6months period. After that, the amount goes back to the 24% p.a. I.e. to say, you delay your sufferings by 6 months that's all, it does not solve your problem.

People who utilizes credit card and does not attempt to clear it in full thinking the interest is very low per month, pls think again.

Take a small simple example of $5000 on credit card. At 2% per month, you incur $100 for interest. If you make a payment of $200 per month, $100 is use to clear the interest, $100 is use to clear the principal sum. $5000/$100 will take you 50 months to clear. And you are paying 24% for interest per annum!

Balance transfer may be cheap and allows minimum payment, but if you can't pay back the amount after 6 months you are back to square one. Think about can you save $5k in 6 months? If you can't, balance transfer is not going to help.

So how to save yourself from credit card debts? One way is to call up the bank, own up you can't pay and ask them to allow you to pay installment. The interest rate might be slightly lower than credit card, your card will be blocked and of course your credit bureau and credit score will be bad.

Another way would be mortgage but nobody will want to risk their roof over their head and it is too much of a hassle. (appraisals/ approvals/ documentations)

The best solution? Take up personal loan on whichever bank you have not utilize for the credit card. Personal loan highest interest it can go to 7-8%p.a. for a tenure of 4/5 years, still much lower than the 24%p.a. for credit cards. Repayment is installment and usually allows a one shot repayment flexibility with a small penalty but with interest waiver. Simply take the total amount of all your credit cards from all banks, sum the amount and that would be your require principal sum. If you need more than 2 banks so be it, the interest is still lower than each individual credit card. Divide the amount by the installment amount you are able to pay without defaulting that would be the tenure you should go for. If you are owing credit card debts, interest and processing fees does not matter as you are saving a sum of interest by taking personal loan.

I have 2 years of experience in the personal loan department from one of the bank in Singapore, I am still employed there. I have seen far too many credit card accounts as that is what I deal with everyday. Feel free to pm if you need to talk about how to solve your problem in detail.

Hi, can you please contact me @ 81014365? SMS me to discuss more. Thanks

 

[prostcode]

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