clearing loan

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  1. #1

    Join Date
    Apr 2005
    Posts
    12

    clearing loan

    hai everyone,
    this is the first time i am posting a thread.
    my friend is in debts already overdue since couple of months (credit card) she wants to pay it off but no bank is willing to give her loan as she could not pay min balance (i think total o/s is hkd100k). how can i help her. her interest amount is increasing day by day she wants to put an end to all this by taking a loan etc., with less interest as compared to credit card.
    i would appreciate if anybody can advise.


  2. #2

    Join Date
    Apr 2003
    Location
    Hong Kong
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    Any loan (except another credit card) would be much cheaper than the credit card interest rate. Bank interest rate is approx. 6% - compared to approx 30% for credit cards. Even finance companies rates are "cheap" by comparision just now.

    However, to secure a loan in Hong Kong you need collateral e.g. an apartment, car or cash in a time lock deposit account.

    I guess the only option is selling everything she owns to pay down the principal asap.


  3. #3

    Join Date
    Apr 2003
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    Extremely difficult to get a loan in HK once you've got into the bad-credit lists that the banks maintain.

    Best bets are for her to tear up her cards and start talking to the banks involved.

    If they're larger banks like Citibank, HSBC, there is a chance that they may have some flexibility, specially if she has her payroll with them.

    Unfortunately, not many easy ways out of this ...


  4. #4

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    Apr 2003
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    If this friend is local and has family, they can help.

    If the friend is an expat on a work visa... the banks are going to be VERY tough. Given that they frequently get burnt by expats who err .. leave town.


  5. #5

    Join Date
    May 2005
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    Hong Kong
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    I always believed that credit card is a mess though it i very convenient if used for office work and when u travel for office. It actually makes u feel that u have a lot of money when u do not actually have them. It makes u an impulse buyer...I stopped using Credit card and switched to Visa debit card for apst 3 yrs


  6. #6

    Join Date
    Apr 2005
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    12

    My friend does not have any property or anything. does anybody know who to contract in HSBC regarding the credit card re-payment advise with out adding to interest further.


  7. #7

    Join Date
    Apr 2003
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    12,383

    Mahindu, the best approach would be to go to a bank and seek out a branch manager. Or use their internet banking "Contact Us" form within the internet banking account.