Hi All,
So I have a mate who's in a pile of credit card debt… like $40k. Paying 22% interest, cant get a personal loan (credit issues) but I was thinking to balance transfer to a zero rate card instead ? Anyone suggest one with a low fee and a long balance transfer interest free period ?
haha well played sir
Ha ha ha, no, I'm happily not in debt. Not that kind of "friend"
If he has credit Issue then will have same issue with credit card.
Has credit issues, wants to get try and get another credit card, needs a 40k limit.
If your "friends" Credit Score sucks expect Balance Transfer options to be rejected by banks: https://www.getcreditscore.com.au/
You'll also find a balance transfer will cover approx 70% of your debt, with a minimum monthly repayment, for a maximum 15 months.
Consider:
1) If responsible: Asking their parents for a loan
2) If irresponsible: Going bankrupt
Nothing irresponsible about bankruptcy. Don't put moral values on financial decisions.
The lenders gave him $40k and are hitting him for 22%, knowing he had bankruptcy as an option.
I think it would be immoral to keep paying those usurious rates.
By presenting it as somehow shameful you are supporting the high interest rate lenders.
As for advice, how about contacting his creditors and advising he would like a reasonable payment plan or he will be forced into bankruptcy.
He might suddenly find more reasonable credit terms are available.
contacting his creditors
this. get him to contact them and advise he won't be able to continue with the current arrangements, you'll be surprised how quickly they will pause interest, or halve the rates. they want their money back so will bend over backwards to achieve that outcome even if it means they don't make quite as much profit.
Nothing irresponsible about bankruptcy.
Apologies - I meant "irresponsible" with repaying debt to a family or friend. In this case, I recommend bankruptcy too.
Thanks for this. He's in his 40's so parents not an option, also doesnt need to go bankrupt, he can meet his debts… just the interest in huge !
Hi All,
He's servicing his debts, paying them all off slowly. I'm purely trying to help him pay it off quicker. Debt came from over leveraging to buy a family house. Just trying to help, he's a nice guy but utterly useless with money :)
Good chances that since he can't manage his existing credit card, transferring his debt to another will just continue his bad habits.
I suggest he talk to his bank and see if a debt consolidation loan is a good alternative.
No point going bankrupt because in 7 years time they will just place that old debt on him again!
he has to call his credit card issuer and negotiate a plan under financial hardship and he has to make different choice in life, a new life etc.
No point going bankrupt because in 7 years time they will just place that old debt on him again!
Link/source?
I understand some credit collection companies try to recover expired debt, but they have no obligation to pay it after bankruptcy.
Chingy, that's simply not true! The basic laws regarding personal finance are available to one and all.
Mate. seriously DO NOT GET INVOLVED! You will cop the blame and lose a mate when he gets into more debt or the bank takes him to the cleaners. Let your mate sort out his own problems. If he has debt issues no bank will take him on anyway. You will only depress him by suggesting so. STAY AWAY! DONT GET INVOLVED!
lolitsyou and not your friend, correct?