Personal Finance

Too much creditcard balance,Need advice

  • Last Updated:
  • Sep 30th, 2017 2:29 pm
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON

Too much creditcard balance,Need advice

I have about 10 credit cards and carry balance about $150,000 and spouse have about 4 credit card and carry balance $50,000.Total credit card balance me and spouse about $200,000.
Car loan: I pay $188 bi weekely for my 2015 honda ( i bought it dec.2014)

Too much credit card balance because our expenses more than our income.

My anual income $30,000 and spouse anual income $29,000
My relative send me money from overseas every month about $100
Me and spouse make like minimum wage from work.
we have 3 kids.( 1 kid born with autism,i take care of him when i'm home, thats why i didn't do 2nd work)

Our detached house value about $800,000
Our mortgage balance now $371,000
Our mortgage renewal date nov.2017

we are sinking in debt now.
My spouse complain me about bought too much junk .Too many desktop, too many laptops, too many electronics ....
I will sell my items on kijiii

So far, i didn't miss any payment.

I just keep paying minimum payment all credit cards. I didn't miss any mortgage payment.

I did transunion credit score check today, My credit score 598 , my spouse credit score 577

I already talked to a bank, they say , our income low, they can't combine credit cards balance to mortgage.But they will consider give loan with one payment and cancell all credit card. Bank say, minimum credit score 650 and higher income need to combine to mortgage.

My bank mortgage renewal date is Nov. 2017
I hope, Bank renew my mortgage.

My question :

Can i get a weekend job and extra afternoon job and keep pay the credit card balance slowly?

or

sell the house and buy a condo?

or

Can i refinance (consolidate) my mortgage and credit card balance with high interest rate with mortgage broker (B lender) ? ( i guess bank won't help us because low income, low credit score).

(Note: We bought this house year 2001 , For $247,000 . We got mortgage from td bank and my down payment $80,000.
Then, after few years we had credit card balance problem , then we switched (refinance) mortgage with rbc $280,000
Then after few years , credit card balance problem again, refinance mortgage with rbc $400,00 (now balance 371,00)
Now, we have credit card balance problem again, Now house value about 800.00)
Last edited by Avisnak on Jul 14th, 2017 3:33 am, edited 2 times in total.
260 replies
Deal Guru
User avatar
Aug 8, 2012
10198 posts
3803 upvotes
BC
Avisnak wrote:
Jul 14th, 2017 3:33 am
I have about 10 credit cards and carry balance about $150,000 and spouse have about 4 credit card and carry balance $50,000.Total credit card balance me and spouse about $200,000.
Car loan: I pay $188 bi weekely for my 2015 honda ( i bought it dec.2014)

Too much credit card balance because our expenses more than our income.

My anual income $30,000 and spouse anual income $29,000
My relative send me money from overseas every month about $100
Me and spouse make like minimum wage from work.
we have 3 kids.( 1 kid born with autism,i take care of him when i'm home, thats why i didn't do 2nd work)

Our detached house value about $800,000
Our mortgage balance now $371,000
Our mortgage renewal date nov.2017

we are sinking in debt now.
My spouse complain me about bought too much junk .Too many desktop, too many laptops, too many electronics ....
I will sell some of my items on kijiii

So far, i didn't miss any payment.

I just keep paying minimum payment all credit cards. I didn't miss any mortgage payment.

I did transunion credit score check today, My credit score 598 , my spouse credit score 577

I already talked to a bank, they say , our income low, they can't combine credit cards balance to mortgage.But they will consider give loan with one payment and cancell all credit card. Bank say, minimum credit score 650 and higher income need to combine to mortgage.

My bank mortgage renewal date is Nov. 2017
I hope, Bank renew my mortgage.

My question :

Can i get a weekend job and extra afternoon job and keep pay the credit card balance slowly?

or

sell the house and buy a condo?

or

Can i refinance (consolidate) my mortgage and credit card balance with high interest rate with mortgage broker (private lender) ? ( i guess bank won't help us because low income, low credit score).

(Note: We bought this house year 2001 , For $247,000 . We got mortgage from td bank and my down payment $80,000.
Then, after few years we had credit card balance problem , then we switched (refinance) mortgage with rbc $280,000
Then after few years , credit card balance problem again, refinance mortgage with rbc $400,00 (now balance 371,00)
Now, we have credit card balance problem again, Now house value about 800.00)
There is a recurring theme here.

I would advise that after you figure it out, you get rid of all the credit cards. you need to switch to a cash budget and don't spend more than you make. Otherwise it will just repeat again and next time the house might have gone down instead of up and equity won't be there to bail you out.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
ace604 wrote:
Jul 14th, 2017 4:43 am
There is a recurring theme here.

I would advise that after you figure it out, you get rid of all the credit cards. you need to switch to a cash budget and don't spend more than you make. Otherwise it will just repeat again and next time the house might have gone down instead of up and equity won't be there to bail you out.
Thank you for your advise.

I'm going to cancel all credit cards and try to consolidate to mortgage or one loan with one payment.
But, i don't know, bank going to help us this time.
Deal Addict
Jul 18, 2016
1695 posts
617 upvotes
ace604 wrote:
Jul 14th, 2017 4:43 am
There is a recurring theme here.

I would advise that after you figure it out, you get rid of all the credit cards. you need to switch to a cash budget and don't spend more than you make. Otherwise it will just repeat again and next time the house might have gone down instead of up and equity won't be there to bail you out.
Exactly right.

OP, you bought the house for $247K, and your non-mortgage debt was presumably close to zero. 16 years later your mortgage debt is 371K and you have 200K of non mortgage debt.

Having said that, having a kid with Autism must be tough, and would put a lot of financial/time/career pressure on you. I can really sympathize on this issue.

1) There is no way you're going to pay off all that debt on your current income. Its impossible in this lifetime.
2) I think you will be forced to sell, and fortunately for you, you'll be forced to sell after a significant capital gain in your house.
3) Don't delay. Take action now with the sale while you're still in control and have time to control the sale price.
4) After selling, cut up all credit cards except for one. Reduce that one credit card's limit to a very modest limit - just enough to keep your credit profile active and allow you to have a credit card in cases where one is almost always needed ( car rental, hotel etc.).
Deal Addict
Sep 23, 2009
3827 posts
1025 upvotes
OP is used to living the lifestyle of a couple making $80-85K. That is what needs to change.

In roughly 16 years, they have built up $324,000 in debt.
Deal Addict
Apr 19, 2010
1430 posts
386 upvotes
Sudbury
Avisnak wrote:
Jul 14th, 2017 3:33 am
I have about 10 credit cards and carry balance about $150,000 and spouse have about 4 credit card and carry balance $50,000.Total credit card balance me and spouse about $200,000.
Car loan: I pay $188 bi weekely for my 2015 honda ( i bought it dec.2014)

Too much credit card balance because our expenses more than our income.

My anual income $30,000 and spouse anual income $29,000
My relative send me money from overseas every month about $100
Me and spouse make like minimum wage from work.
we have 3 kids.( 1 kid born with autism,i take care of him when i'm home, thats why i didn't do 2nd work)

Our detached house value about $800,000
Our mortgage balance now $371,000
Our mortgage renewal date nov.2017

we are sinking in debt now.
My spouse complain me about bought too much junk .Too many desktop, too many laptops, too many electronics ....
I will sell my items on kijiii

So far, i didn't miss any payment.

I just keep paying minimum payment all credit cards. I didn't miss any mortgage payment.

I did transunion credit score check today, My credit score 598 , my spouse credit score 577

I already talked to a bank, they say , our income low, they can't combine credit cards balance to mortgage.But they will consider give loan with one payment and cancell all credit card. Bank say, minimum credit score 650 and higher income need to combine to mortgage.

My bank mortgage renewal date is Nov. 2017
I hope, Bank renew my mortgage.

My question :

Can i get a weekend job and extra afternoon job and keep pay the credit card balance slowly?

or

sell the house and buy a condo?

or

Can i refinance (consolidate) my mortgage and credit card balance with high interest rate with mortgage broker (B lender) ? ( i guess bank won't help us because low income, low credit score).

(Note: We bought this house year 2001 , For $247,000 . We got mortgage from td bank and my down payment $80,000.
Then, after few years we had credit card balance problem , then we switched (refinance) mortgage with rbc $280,000
Then after few years , credit card balance problem again, refinance mortgage with rbc $400,00 (now balance 371,00)
Now, we have credit card balance problem again, Now house value about 800.00)
Not sure if Troll Post or....

$59k annual salary........$200k in CC debt???

How does this even make sense.

10 Credit Cards??
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
renoldman wrote:
Jul 14th, 2017 7:56 am
OP is used to living the lifestyle of a couple making $80-85K. That is what needs to change.

In roughly 16 years, they have built up $324,000 in debt.
You are right, I spend too much money and bought so many items and stored in my basement.
That's what my spouse complain
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
No Troll post.
This is our current situation.
Deal Addict
Aug 24, 2016
1948 posts
959 upvotes
kanewtz wrote:
Jul 14th, 2017 7:58 am
Not sure if Troll Post or....

$59k annual salary........$200k in CC debt???

How does this even make sense.

10 Credit Cards??
Exactly what I was going to post, word for word.
What the heck was purchased all those years to accumulate all that debt?
And for this to happen again and again, OP should never use credit again, ever. They're clearly too irresponsible for it.
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
My spouse complain that i bought so many computers and electronics and stored in my basement . I'm going to sell all the item on kijiii .
Deal Addict
Sep 23, 2009
3827 posts
1025 upvotes
I think what people want to know is this:

Did you qualify for $200K in credit card debt under different circumstances?

Like, before your autistic child was born, was family income much higher than now?

If yes, did you tell them of your change in circumstances?
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
bewiseman wrote:
Jul 14th, 2017 8:09 am
How did he manage to secure a loan on a 2015 Honda with such a low income and so much debt??! Was all of this credit card debt accumulated since the car was bought in 2014? Perhaps, his income dropped considerably over the last three years.
Honda finance approved me for $188 bi weekly payment on Dec.2014.( i guess 84 months plan). I trade in my old car for $10,000
Last edited by Avisnak on Jul 14th, 2017 8:31 am, edited 1 time in total.
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
renoldman wrote:
Jul 14th, 2017 8:29 am
I think what people want to know is this:

Did you qualify for $200K in credit card debt under different circumstances?

Like, before your autistic child was born, was family income much higher than now?

If yes, did you tell them of your change in circumstances?
Yes, different cirrcumstances.
Every time , i refinanced mortgage, bank told me to cancel all credit cards my self. But i didn't cancel and keep get new credit cards.
Yes, family income little higher before.
Last edited by Avisnak on Jul 14th, 2017 8:43 am, edited 1 time in total.
Deal Addict
Apr 11, 2006
4679 posts
883 upvotes
Mississauga
Avisnak wrote:
Jul 14th, 2017 8:31 am
Honda finance approved me for $188 bi weekly payment on Dec.2014.( i guess 84 months plan). I trade in my old car for $10,000
What? You don't know how long the financing is? You traded in an old car for $10K and still have to pay $188 bi-weekly for 7 years?
So $10K + $188 x 26 x 7 = $44,216 for the Honda Civic?

Am I understanding that? Or the $10K you got was separate?

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