Please advise me. I seriously need help

[chokie]

Hi people. Please advise me. I seriously need help on which directions i need to go down.

It is about debts. I am self employed. Currently i have a Bank mortgage loan and unsecured debts of $68k. Due to my own folly, i snowballed my unsecured loans to about $68k. i cannot blame anyone but me for not working hard.
I need really good advise where and help i can at least reduce my debts.
1) my business got no sales for December 2015 since. no income for me and my wife
2) My wife is unable to work due to depression for pass few years
3) I have intention to work as a security guard or supervisor in Jan 2016 -Salary basic $1100 to $1500 (they say gross 1900 to 2400)

My questions are ;
1) My bank mortgage loan is around $680 month. I have used cash payment since i took up. -remaining $190k to bank.
if i work now. my CPF is only around $310 per month contribution or so. can i direct my CPF contribution to bank? how may the remaining balance of $370 to $380 to them ? top up to CPF or transfer to the Mortgage Bank account number ?
2) My unsecured debts from
Standard charted Credit card -$16k
Maybank credit card -$15k
HSBC credit line -$16k
UOB credit line $9.4k
DBS credit line $5k
Citibank Credit line $6.4k

Please advise how to reduce those debt by not paying so high interest
I have crashed everything and my wife suffered tremendously. blaming herself even more and even felt depress further
I have no where to seek advise already as i am self employed currently.
My concerns are
1) as my 4 Room hdb house is due to MOP on this year June 2016, i have intention to sell off.
However it is under bank loan. My HDB is under Bank Mortgage Loan. I will still continue to make monthly payments to my Secured Mortgage Loan till my MOP in June ?

Can they seize my HDB if I am unable to make payment for my UNsecured Credit cards/credit line loans? although i still my payments to my mortgage loan ?

I am seeking real help and advise. My Wife stood by me for some many years and i cannot afford her to be depressed year on year -ill treated by my mother for 8 years and we bought this 4 room HDB.I have already cause her to lose everything for her career since
Please advise me further, I really need help

 

[koxinga]

Your immediate issue is the credit card debts because of the high interest rates and cumulative effect. It sounds bad but have you considered borrowing from family? If not go to CCS for help.

That is short term to stop it from getting worst. Next step is having inflows. You did not say what business are you doing and why it is going wrong. Is it a fixable problem?

What is your skillset/experience/education? Can you leverage on those?

 

[microtek]

What is your educational level?

Here are your options
- Call the banks and tell them you have trouble making the payments and negotiate a more manageable installment plan.
- Consult CCS, a Social Welfare Centre or your MP for help.
- There are jobs out there that pay about $2K+ which is higher pay than being a security guard.
- Take up a part time job during the weekends to bring in more income.
- Give up your business as your immediate concern is to bring in income to clear your huge debts.
- As you said, downgrade to a smaller flat when it hits the MOP period so you can pay off some of your debts.

If I am not wrong, if you are still promptly paying your home loan installments, the bank cannot seize your HDB flat for your credit card debts. But best is to call HDB to double confirm. Once you have cleared your debts, cut up your credit cards and switch to using debit cards so you won't be tempted to spend on credit again.

Hope you will be able to pull through this tough time of yours.

 

[chokie]

I have no one to turn to for help. No other family. My business is for recruitment solution service, the conditions are such that we faced many competitions and other factors like companies not recruiting or using us. Even i have sales going through, i am not sure for this year 2016. Another issues are the company cost factors also like company phone bills internet and accounting firm yearly payments
For my education i have O levels with 9 years of recruitment exposures

 

[chokie]

"If I am not wrong, if you are still promptly paying your home loan installments, the bank cannot seize your HDB flat for your credit card debts. But best is to call HDB to double confirm. Once you have cleared your debts, cut up your credit cards and switch to using debit cards so you won't be tempted to spend on credit again."

-But Mine is a Bank Mortgage loan and use cash to may payments it not under HDB loan as i cannot get one when i applied.
Any idea on this ?

 

[microtek]

"If I am not wrong, if you are still promptly paying your home loan installments, the bank cannot seize your HDB flat for your credit card debts. But best is to call HDB to double confirm. Once you have cleared your debts, cut up your credit cards and switch to using debit cards so you won't be tempted to spend on credit again."

-But Mine is a Bank Mortgage loan and use cash to may payments it not under HDB loan as i cannot get one when i applied.
Any idea on this ?

Yes, as I know, even if it is a bank mortgage loan & you are regularly paying your loan installments they can't seize your flat for your outstanding credit card debts. But like I said, best is to call HDB to double confirm with them.

 

[oceanicmanta]

Can you drive ? Ever considered Uber as an option ?

 

[chokie]

Thanks Microtek, will check with HDB on this. any other advise pls, i really need it

 

[kazejin]

Can you drive ? Ever considered Uber as an option ?

yes, thats potentially a good idea.
i chatted with some grabcar drivers, they said the takings is good if willing to work hard. definitely more money than security guard.

 

[chokie]

I dont have license

 

[koxinga]

If you see no way to turn the business around, then sell it. Given your recruiting experience, have you consider working in the recruitment/executive search?

 

[chokie]

If you see no way to turn the business around, then sell it. Given your recruiting experience, have you consider working in the recruitment/executive search?

They wont hire me as i tried before.
I am now worried for my wife and my 4 room HDB. I am afraid because of my Unsecured Debts, The bank seize my HDB. My wife cant even do her daily chores and upkeep of the house ever since she has depression for 8 yrs.
Very worried for my wife and very worried for my HDB and debts

 

[NewInvestor]

Hi Chokie. My view is as follows :


First of all, only the bank lending you the housing loan can seize your HDB flat - please see section 51 of the Housing and Development Act. No other creditor can do that. As long as you keep paying your mortgage loan, I do not think that the housing loan bank will seize your HDB flat. HDB flats are special in that way. This rule do not apply to private properties. Please call the HDB to confirm.

Due to the special nature of HDB flats, my view is that you should not let go your HDB flat. If you are able to stay with your parents or someone else, please apply for permission to rent out your HDB flat. Explain to the HDB that you need extra income.

Since your business is not doing well, you should certainly obtain a job ASAP to ensure that you pay your housing loan promptly. That is paramount. Also, that will ensure that you are able to pay for household expenses. Take up the security guard position if it is immediately available; you can look for a higher paying job whilst already been employed as a security guard.

Once you have settled all these (which should take less than a week), you then turn to solve your credit card problems. Hopefully, by then, you will have income from your HDB flat rental as well as a paying job.

WRT the credit cards banks that you owe money to, my advice is to go to each of them and tell them about all of the other credit card debts. The chances are that they already know about it anyway because there is some information sharing among banks at the credit bureau. Pls try to negotiate a discount (yeah, it is possible) and tell them your plan to pay all of the banks. Try to sign an agreed plan with each of the banks. Please do not borrow any money from any friend or relative to pay credit card banks until you already have a signed payment plan agreement with them. In other words, save your bullets where it will do the most good.

Good luck.

 

[dowzkeh]

(1) i think you can call CCS to help with your CC loans - and to get it to a manageable interest rates. Do not let the interest snowball for CC, it is very very high

(2) Call HDB/MP to help with the MOP, and sell of the HDB if you can consider this option. then downgrade to a 3 room. It might help with the cash flow.

 

[chokie]

Hi Chokie. My view is as follows :


First of all, only the bank lending you the housing loan can seize your HDB flat - please see section 51 of the Housing and Development Act. No other creditor can do that. As long as you keep paying your mortgage loan, I do not think that the housing loan bank will seize your HDB flat. HDB flats are special in that way. This rule do not apply to private properties. Please call the HDB to confirm.


Due to the special nature of HDB flats, my view is that you should not let go your HDB flat. If you are able to stay with your parents or someone else, please apply for permission to rent out your HDB flat. Explain to the HDB that you need extra income.

Since your business is not doing well, you should certainly obtain a job ASAP to ensure that you pay your housing loan promptly. That is paramount. Also, that will ensure that you are able to pay for household expenses. Take up the security guard position if it is immediately available; you can look for a higher paying job whilst already been employed as a security guard.

Once you have settled all these (which should take less than a week), you then turn to solve your credit card problems. Hopefully, by then, you will have income from your HDB flat rental as well as a paying job.

WRT the credit cards banks that you owe money to, my advice is to go to each of them and tell them about all of the other credit card debts. The chances are that they already know about it anyway because there is some information sharing among banks at the credit bureau. Pls try to negotiate a discount (yeah, it is possible) and tell them your plan to pay all of the banks. Try to sign an agreed plan with each of the banks. Please do not borrow any money from any friend or relative to pay credit card banks until you already have a signed payment plan agreement with them. In other words, save your bullets where it will do the most good.

Good luck.

Sadly i do not have hard cash now to make partial payment. to what i know credit card and credit line banks requires you to pay cash outfront right then they will talk to you on repayments
I got no family as well as my wife, we are on our own since we got this 4 room

 

[microtek]

Also forgot to say this, since you are staying in a 4 room flat and your MOP is only in June, you can rent out 2 of your bedrooms. You can easily get $500/mth per room so that is an easy $1,000/mth+ for you.

 

[starfish.starfish]

TS sorry to hear that. I agree with microtek on rental.

 

[oceanicmanta]

all sound advice given below ... go discuss with HDB on the various options possible : keep & rent, sell before MOP, rent from HDB, rent out a room etc

also consider other flats in your estate will also achieve MOP same time in 6 mths ?

Before speaking to MP, do find out what HDB can or cannot help with, is it just some protocol ? Then you can better ask MP for specific request to the HDB.

for part time work, there are delivery business that offer ad-hoc hand delivery jobs, no harm signing up for those ...

 

[oceanicmanta]

Sadly i do not have hard cash now to make partial payment. to what i know credit card and credit line banks requires you to pay cash outfront right then they will talk to you on repayments
I got no family as well as my wife, we are on our own since we got this 4 room

dont focus on what u cannot do, dont have now or what u think others cannot do ...

no harm just asking

天无决人之路

All the best !

 

[NewInvestor]

Sadly i do not have hard cash now to make partial payment. to what i know credit card and credit line banks requires you to pay cash outfront right then they will talk to you on repayments
I got no family as well as my wife, we are on our own since we got this 4 room

Credit card collectors cant do much to you in your situation. They hv no choice but to accept a payment plan.