Like Tree10Likes

DEBT SETTLEMENT (I need ur help)

Closed Thread
Page 1 of 3 1 2 3 LastLast
  1. #1

    Join Date
    Aug 2010
    Posts
    9

    DEBT SETTLEMENT (I need ur help)

    Hi All,

    I need your help, don't worry I am not gonna ask you for money.

    I am ready to settle 2 credit card debts. They are from few years ago and now I have the cash to settle them. They are not more than six years old, otherwise I won't be asking for any advise, cos as far as I know debt older than 6 years old can no longer be "negotiated" but can certainly be settled.

    So the questions are:
    1) How do i approach the offending banks, who put me under debt.

    2) my goal is to only pay them the very final principal amount before which I no longer could afford to pay. that principal amount also was accumulated also over few years period, so it already includes lots of interest anyone. total principal debt to my knowledge before I stopped paying is less than 40K Hk$.

    so if anyone has experience in negotiating, can you kindly and please guide me on
    how to approach these 2 banks and
    what kind of amount would they be pushing me to pay
    and how can I pay the minimum and only that i owe
    and usually these kind of matters how long do they take?

    thanks for your comments/ suggestions specially from those guys/gals who have gotten themselves out of debt.


  2. #2

    hello:
    first of all. what is reason for u to pay back the money now? did the banks still trace you during these few years? normally the bank can only sue you if the debt is less than 6 years old. after 6 years passed, the court won't accept the application from the bank. why don't u talk to a lawyer about your debt issue? they can help you in the debt consolidation process.

    harmon likes this.

  3. #3

    Join Date
    Feb 2009
    Location
    Gulf Region, ex Mid-Levels
    Posts
    1,933

    Not quite I don't think, it is six years from the last action not from when you took out the debt, otherwise people would be running away from their mortgages all over the place.

    LIMITATION ORDINANCE - SECT 4 Limitation of actions of contract and tort, and certain other actions

    Speak to a lawyer

    harmon likes this.

  4. #4

    Join Date
    Aug 2010
    Posts
    9

    thanks for the reply and suggestion. anymore comments and suggestions ? much appreciated.

    I don't mind going to lawyer, but for such small amount less than HK$35 K, they would charge me few thousand to settle it, so it is not a very viable option for me. Unless someone here knows someone who can help in settling the whole thing cheaply?


  5. #5

    Join Date
    Mar 2007
    Location
    Gold Coast Marina
    Posts
    17,934

    I'm confused. You got into debt on your credit cards and ran up alot of interest. Now you pay the balance - presumably they have been sending you statements every month? You must know how much this is. I get the impression you are trying to duck out of your obligations and don't have much sympathy, considering it's well nigh impossible to go from 'dead broke' to 'i have 40k and i call it a small amount of money' without some intervening period when, frankly, you should have been repaying the debt.


  6. #6

    Join Date
    May 2006
    Location
    Siu Sai Wan
    Posts
    1,660

    To clarify:
    - Debt was about $35k, two years ago when you stopped paying?
    - You have moved address, so they haven't been able to track you down?
    - You want to pay $40k to clear all the debts?

    If the above it true, you will be out of luck, I believe.
    The compound interest (20%+?) on the $35k over two years will be more than this.
    The banks will, rightly, want you to pay the interest.

    I am not aware of non-profit people who can help you in Hong Kong (I know of other places like this in other countries), there must be someone that can help you a bit.

    You could call them up and see how you go over the phone - pleading that you are poor, but want to clear the debt if they could see fit to reduce some of the interest and charges accrued. Don't like your chances though - have heard that debt collectors in Hong Kong are pretty unhelpful.

    harmon likes this.

  7. #7

    Join Date
    Oct 2006
    Location
    Sarcasm - because beating the crap out of people is illegal
    Posts
    14,622

    The only place I know of in Hong Kong for debt counselling is the TWGHs Healthy Budgeting Family Debt Counselling Centre. The website is all in Chinese so I don't know whether it helps in this kind of situation.

    harmon likes this.

  8. #8

    Join Date
    Aug 2010
    Posts
    9

    Yes. Crocodile, you got it right.

    I owed about HK$35K.
    Moved house a few times, even moved out of HK for job elsewhere.
    so the boogeymen have not been in contact.
    I hopefully wish to just pay HK$35k only, or a few grands more, if I can get them to clear my books.
    I don't care if they don't issue me new cards anymore or my credit record is spoilt since do not wish to be in debt ever again.

    I have been meaning to pay the debt:

    1) for moral reason, yes I am afraid of God, and I was young and stupid and couldn't pay of my debt on time and then I lost my job.
    (so do not wish for any further lecturing from moving07, as i thought this is an advise taking / giving forum, not a class on morals).

    2) immigration has asked me to declare if I owe anyone any money, (i am acting as a sponsor for a family member) so I don't want to lie to them and say i don't, or tell them that I owed $35K few years ago, which they will also calculate and say your unpaid debt should now be this much and the money you have in your account which is about 100K is not sufficient for you to sponsor someone into HK)

    Now the clear advise I need is on the following:
    1) I thought debts gets sold to debt collections agencies after 6 months of being outstanding and the interest stops getting calculated any further. Not for 6 YEARS.
    Please confirm this kindly if someone has knowledge.

    (If above is the case then my 35K debt after 4 years will now be around 85K. And if I don't pay it now, after completing 6 years, it will be 134K. I am calculating it on 25% yearly basis where the base gets bigger with the interest amount added after every year. I don't have that much money and will only be willing to pay it, if I become a millionaire, chances of which are slim.)

    Should I just declare my debt to immigration and say, I owe 35K to 2 credit card companies, whereas I currently have around 100K in account enough to sponsor someone to be my dependant?

    do they have the power to make me settle my debts?

    of course I know they have the power to refuse my sponsor's visa.

    but I am wondering, if I should just not declare any debts at all.
    and then after 2 more years find out what is the amount they want me to pay and then negotiate it with them. by then hopefully I will have more money to pay them even with more interest if necessary.

    thanks again everyone and sorry my message got a little long again.

    thanks Claire ex-ax. will check out your suggestion.


  9. #9

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    Declaring $35K would be knowingly making a false declaration - your debt, by your own calculation, is approximately $85K. You can't retrospectively change the terms of the agreement that you made with the credit card company when you used their card. If you didn't agree with the terms you shouldn't have used the card.

    But then again with statements like this:

    for moral reason, yes I am afraid of God,
    we can't expect much in the way of rational thought, can we?

  10. #10

    Join Date
    Oct 2006
    Location
    Sarcasm - because beating the crap out of people is illegal
    Posts
    14,622

    Have you checked with Trans Union as to the status of these debts?


Closed Thread
Page 1 of 3 1 2 3 LastLast