Personal Finance

Too much creditcard balance,Need advice

  • Last Updated:
  • Jul 21st, 2017 8:14 pm
Sr. Member
Jan 19, 2008
705 posts
173 upvotes
Avisnak wrote:
Jul 14th, 2017 8:26 am
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 .
Computers and electronic do not hold their value. You will be lucky to get 10% of their original value back
Deal Addict
User avatar
Jan 31, 2006
4198 posts
371 upvotes
Toronto
ROYinTO wrote:
Jul 15th, 2017 5:40 pm
Don't know.

Basement is supposed to be filled with recent multiple higher priced RFD Hot Deals.
If they hoard like they spend, there might be a glimmer of light at the end of the tunnel.
On Edit: I took the lead from an earlier post and looked up the OP's posting history. There are multiple computers, laptops, monitors, large screen TV's etc. It is hard to imagine a single person buying that much stuff. They would need to take inventory to deterimine a value for a clearance sale

They might get $20K for the car, but there are still 3+ years left to pay.
$188 x 6 x 26 biweekly payments = $29,328 - (2.5x26x$188) or $12,220 = $17,108 still owing
Net on vehicle if sold might be $5K
On Edit That $5K or so could be used to buy an older vehicle freeing up $376 a month in payments.

Things are doable, but it then becomes will it be enough, soon enough to meet that November deadline?
I don't see anything will change even if Op's is able to sell all stuffs in the basement even let say $20K. The best solution is sell the house and pay off the debt. But what I can see on Op's last post is he trying not to involved his house and finding a mortgage consolidator.
Deal Fanatic
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Aug 8, 2012
9609 posts
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BC
I believe OP's situation is totally possible. See my post a few up thread.

I think consolidation is not possible OP.

You do NOT qualify to borrow that much money on that low salary.

That debt load unsustainable at that salary even if it was at 2% which you would never get.

Even 30-yr 2.75% on $575k is $2,650/mo which is over 50% debt service ratio (WAY over limit)... and you won't qualify for that rate.
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...)
Deal Addict
Jul 18, 2016
1490 posts
501 upvotes
Did others suddenly get hit by an abusive down voter? I suddenly got 6 down votes in a period of 30 second, all on this thread. Somebody is having fun. :)
Sr. Member
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Mar 9, 2012
547 posts
173 upvotes
bewiseman wrote:
Jul 15th, 2017 10:57 pm
Did others suddenly get hit by an abusive down voter? I suddenly got 6 down votes in a period of 30 second, all on this thread. Somebody is having fun. :)
Same. My week end is ruined now. :(


Last 5 posts downvoted
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
Deal Addict
Jul 18, 2016
1490 posts
501 upvotes
skunkyjosh wrote:
Jul 15th, 2017 11:53 pm
Same. My week end is ruined now. :(


Last 5 posts downvoted
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
1Too much creditcard balance,Need advise1 hour ago
Mine too. I just drowned my sorrows, and now I'm ready for sleep. :)
[OP]
Jr. Member
Aug 16, 2015
162 posts
19 upvotes
Toronto, ON
I talked to a mortgage broker today over the phone. He said, he can help me consolidate my mortgage with credit card balance with B- lender with little high interest rate for one year and he said i can switch again after one year to A-lender with low rate when my credit score get better.
I have appointment with him tomorrow.He said, bring mortgage statement,pay stub,property tax statement.
I'm going to get weekend job and try to rent basement apartment to make more money.
Even we sell house and rent apartment, we have to pay ~ $2200 rent.

I think, i have 2 options:

1.Consolidate Mortgage with credit card balance with B-lender with little high interest rate for one year. Then switch to A-lender after one or two year after my credit score and income get better.
OR
2.Sell the house . $800K- $371K-$200K=~$150K my hand ( My neighbour sold same size house $900K on Jan.2017. I hear , house price little down now)
Deal Addict
Aug 3, 2014
3375 posts
1334 upvotes
If this is a troll post, OP is an expert. He's been getting his post history ready for this thread for months.
Newbie
User avatar
Feb 16, 2014
54 posts
12 upvotes
hvwozq wrote:
Jul 16th, 2017 1:38 am
If this is a troll post, OP is an expert. He's been getting his post history ready for this thread for months.
+1000

$60K income and carrying a $200K credit card debt is unlikely considering average cost of maintaining a house and ordinary basic living expenses (food,gas,insurance,ppty tax,utilities,etc)
Deal Addict
Dec 16, 2005
2475 posts
576 upvotes
b33zlebub wrote:
Jul 16th, 2017 1:49 am
+1000

$60K income and carrying a $200K credit card debt is unlikely considering average cost of maintaining a house and ordinary basic living expenses (food,gas,insurance,ppty tax,utilities,etc)
I think you missed the sarcasm...
Deal Addict
User avatar
Jan 31, 2006
4198 posts
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Toronto
Avisnak wrote:
Jul 16th, 2017 1:35 am
I talked to a mortgage broker today over the phone. He said, he can help me consolidate my mortgage with credit card balance with B- lender with little high interest rate for one year and he said i can switch again after one year to A-lender with low rate when my credit score get better.
I have appointment with him tomorrow.He said, bring mortgage statement,pay stub,property tax statement.
I'm going to get weekend job and try to rent basement apartment to make more money.
Even we sell house and rent apartment, we have to pay ~ $2200 rent.

I think, i have 2 options:

1.Consolidate Mortgage with credit card balance with B-lender with little high interest rate for one year. Then switch to A-lender after one or two year after my credit score and income get better.
OR
2.Sell the house . $800K- $371K-$200K=~$150K my hand ( My neighbour sold same size house $900K on Jan.2017. I hear , house price little down now)
If I were you, I just sell my house now and become debt free. Don't bother to consolidate your debt, renting out your basement might cause you more headache.
Deal Addict
Sep 23, 2009
3662 posts
959 upvotes
The real issue is that OP and their spouse (and family) is accustomed to living on $100K+ per year and have been doing so for quite some time.

Yes, the OP may have bought too much electronics, but they likely over spent in other areas - relative to income.

I mean, what if the OP and their spouse is used to going to restaurants 5 times a week?

We are not really talking about one or two bad years ..... they have been living beyond their means since at least 2001.

Changing habits held for that long will be difficult.

It may even cause the relationship between OP and their spouse to fail.

Yes, there is something called love. But when someone is used to a certain lifestyle ..... love may not be enough .... even if they have kids.
Deal Addict
Nov 22, 2015
1820 posts
918 upvotes
b33zlebub wrote:
Jul 16th, 2017 1:49 am
+1000

$60K income and carrying a $200K credit card debt is unlikely considering average cost of maintaining a house and ordinary basic living expenses (food,gas,insurance,ppty tax,utilities,etc)
I guess you didn't read the thread or actually look at OPs old threads and posts.....
Deal Addict
Dec 12, 2009
2152 posts
656 upvotes
Toronto
I guess I was lucky, only 3 downvotes @ ~ 10:45 PM last night.
Avisnak wrote:
Jul 16th, 2017 1:35 am
I think, i have 2 options:

1.Consolidate Mortgage with credit card balance with B-lender with little high interest rate for one year. Then switch to A-lender after one or two year after my credit score and income get better.
OR
2.Sell the house . $800K- $371K-$200K=~$150K my hand ( My neighbour sold same size house $900K on Jan.2017. I hear , house price little down now)
I have to agree with @ace604
ace604 wrote:
Jul 15th, 2017 9:29 pm
I think consolidation is not possible OP.
cgtlky wrote:
Jul 15th, 2017 8:56 pm
The best solution is sell the house and pay off the debt. But what I can see on Op's last post is he trying not to involved his house and finding a mortgage consolidator.
I don't know if this is the best solution, it appears to be the most logical. The OP would need to talk to people in the debt management field to see if a consumer proposal or bankruptcy are viable options.

If we consider selling the house, the OP might be debt free with $150K in the bank. Can that then be used as a down on cheaper housing? At this point, I don't think the banks would give another mortgage due to the current credit rating and past history. So it is off to the B lenders. The question then becomes how much would they qualify for?

Post 1 says they have a household income of $59K with $100 month coming from overseas.
Post 41 says they have ~ $1700/month from gov't sources.

If the OP was to sell the house & put $20K into savings/moving expenses/emergency funds that would leave $130K as a down payment. How much of a mortgage would they then qualify for with a B-lender? Is buying a property in the GTA within reach?

On edit: I looked @1 calculator (CIBC) 1 year @ 4% would allow a ~ $270K mortgage on base household income. Do $400K properties exist?

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