Credit Card Debt

allenskhuang · 15-05-2009, 04:48 PM

Hi,

I've been out of work for 4 months...and haven't been able to pay my credit card debt. I have been looking for work and will be starting next month. Now's the bad part...

I haven't been paying my minimum as I did not have any revenue. I owe a total of $100,000 HKD. Last week, HSBC called me and told me that my debt has been transferred to a collections agency. I called HSBC up and told them I can start paying next month.

HSBC came back and told me the debt is now $150,000 HKD, and they want me to pay $45,000 HKD right away and then $10,000 HKD every month.

What should I do? My new job only pays $12,000 HKD / month.

I can finally pay the minimum...but now they jacked up the debt by 50% for no reason and they require a $45,000 HKD initial payment and $10,000 HKD monthly.

Anyone have advice on this? I definitly don't need the collections agency harrassing me as I'm stressed about the economy and just starting a new job soon.

Thanks.

A

Sigga · 15-05-2009, 05:11 PM

1 Find out why they increased the debt. What fees were these exactly? Get it in writing and try to dispute some of them. Ultimately they want you to pay their money back and may agree.

2 Negotiate a repayment plan. Explain your situation clearly, provide evidence of your job offer, make a plan showing your income and outgoings, then make them a reasonable offer. It's in their interest to accept. Ask them to freeze the interest or give you a better rate. You have to convince them that you want to repay and that you are making the offer in good faith.

3 Consider getting a loan to pay off the CC debt if they don't agree. It will be much cheaper to service.

Get some professional advice. I can't find anything specifically for HK, but here is a UK site.

MrMoo · 15-05-2009, 05:20 PM

Go to the bank and speak with the manager, you should be able to come to some amicable arrangement.

Claire ex-ax · 15-05-2009, 05:23 PM

You need to speak to a supervisor or manager. Explain you will pay off the debt but need to work out a repayment schedule.

There is also the Healthy Budgeting Family Debt Counselling Centre, but it may only be for Cantonese speakers. Hotline: 2548-0803
http://fdcc.tungwahcsd.org/main.html

allenskhuang · 15-05-2009, 05:56 PM

I called HSBC and they transferred me to the Account Rep who handles my case.

She yelled at me and told me I must pay $45,000 HKD tonight. She also told me to not call her again if I cannot come up with $45,000 HKD tonight. She then hung up on me.

I tried calling HSBC back a second time and they transfered me to the same Account Rep. She yelled at me again and told me if I cannot pay $45,000 upfront and $10,000 monthly....to not call and bother her again.

I'm very depressed. Not sure what to do...she won't even let me talk to the manager or supervisor.

Is it all fun and games for these Account Reps? Don't they know I want to pay back...but at a more realistic schedule?

A

PDLM · 15-05-2009, 06:35 PM

You could declare personal bankruptcy or go for a legally binding "Individual Voluntary Arrangement" (IVA).

Details here: Official Receiver's Office - Simple Guide on Bankruptcy

er2 · 15-05-2009, 06:51 PM

if that was indeed her reaction, record it and put it on youtube. Nothing banks like less than bad word-of-mouth...
On the serious side- get all the help you can get. Try to find someone who can sort out what you really owe, that might be much less than what they want. And maybe provide a bit of further information, like - where are you from? Could you reasonably threaten then to run off overseas/ declare bankruptcy? It might help people here assess your situation. Best of luck...
Posted via Mobile Device

bookblogger · 15-05-2009, 06:52 PM

Originally Posted by allenskhuang:

I called HSBC and they transferred me to the Account Rep who handles my case.

She yelled at me and told me I must pay $45,000 HKD tonight. She also told me to not call her again if I cannot come up with $45,000 HKD tonight. She then hung up on me.

I tried calling HSBC back a second time and they transfered me to the same Account Rep. She yelled at me again and told me if I cannot pay $45,000 upfront and $10,000 monthly....to not call and bother her again.

I'm very depressed. Not sure what to do...she won't even let me talk to the manager or supervisor.

Call her again. Don't let yourself be treated like this.

PDLM · 15-05-2009, 06:58 PM

Having said that, since the OP let it get to the stage of HSBC handing it off to debt collectors then the OP has clearly been ignoring a whole heap of correspondence from HSBC before it got to this point, so they have some justification for being a bit annoyed.

MovingIn07 · 15-05-2009, 07:51 PM

True but if the OP has no money there is really no point in yelling at them and telling them to pay money they don't have!

I would complain about the treatment received by HSBC staff, to be honest, and ask for a new account rep. I would also go into a branch personally (perhaps with a friend so if they are mean you have evidence later) and try and sort this out one-on-one with your job offer and plan.

Although, I have to add, your job is 12k per month but you racked up 100k in debt? That is really poor financial planning! (And my sister did worse in the UK, so I know it's possible). But you really need more help than just this debt - you need some help to understand why it occurred and help you to manage in the future so it does not reoccur. Don't ignore this - you need to get back on track asap.