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Managing credit card debt

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  1. #11

    Join Date
    Dec 2016
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    278
    Quote Originally Posted by Beanieskis:
    Call HSBC and ask to agree a repayment plan.
    Should he default on a month payment first before approaching to show he can’t pay back. Because he can perfectly pay 10-15% over minimum payment even now. He is just not happy paying a lot of interest. He would have paid back 60% of the owed amount in the last year if it weren’t for interest

  2. #12

    Join Date
    Dec 2013
    Location
    Hong Kong
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    12,323

    Get a loan to pay off the credit card - I agree this is the right strategy. Keep trying until you can find one.
    Cut up the credit card.
    I think you are doing all the right things - I wouldn't try and get a repayment plan until you are certain nobody will give your friend a loan, it's probably still higher interest rate than a loan.
    Like MandM, I do despair at how people can be so stupid as to get themselves into this kind of a mess, but I've seen it first hand in my own family so I know it happens to the best of us. good luck. You are a good friend. Just don't lend him/her your own money.


  3. #13

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    Dec 2008
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    If your friend gets an extra parttime job he could pay off the debt even faster.

    gigglinggal and Pidaras like this.

  4. #14

    Join Date
    Mar 2008
    Posts
    992
    Quote Originally Posted by Srashes:
    Perfect. Will look into tax loan. As for the UA Finances, are they well-known? They have this “no-show” lending where no document of proof is needed. Doesn’t this sound fishy?
    UA is owned by Sun Hung Kai.

  5. #15

    Join Date
    Dec 2016
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    Quote Originally Posted by Drunken Master:
    If your friend gets an extra parttime job he could pay off the debt even faster.
    He does it already. Except that’s used for his mortgage payment.
    gigglinggal likes this.

  6. #16

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    Dec 2016
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    Is it difficult to get a loan if you don’t have an auto payroll? Since my friend gets a cheque at the end of every month (No consistent date but last week of month), does this suffice in terms of income proof?


  7. #17

    Join Date
    Mar 2008
    Posts
    992
    Quote Originally Posted by Srashes:
    He does it already. Except that’s used for his mortgage payment.
    If he has a mortgage, why doesnt he refinance and get some money out of his property. Problem solved?
    HK_Katherine likes this.

  8. #18

    Join Date
    Mar 2010
    Posts
    238

    If he cannot get loans from the banks, then the money-lenders (UA, Public Bank etc) are the next best option. The money lenders are relatively expensive but still cheaper than making minimum payments on the credit card. Once he gets the loan, make sure he cuts the credit card otherwise he will be in a worse situation down the road.


  9. #19

    Join Date
    Dec 2016
    Posts
    278

    Thanks guys. Will let him know of his options.


  10. #20

    Join Date
    Mar 2016
    Location
    Malaysia
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    401
    Quote Originally Posted by Srashes:
    He does it already. Except that’s used for his mortgage payment.
    I assume that the interest rate on the mortgage is lower than on the credit card loan? In that case would it be best to increase the mortgage and use the extra money to pay off the credit card loan.