Personal Finance

Too much creditcard balance,Need advice

  • Last Updated:
  • Sep 30th, 2017 2:29 pm
Deal Addict
Dec 12, 2009
2256 posts
692 upvotes
Toronto
It is a shame that we cannot have a voluntary credit limiting mechanism through our credit reports.
If a problem gambler wants to they can register with the casino's not to allow them to gamble. Why can't we do the same for credit?

For example, in the case of the OP, the bank could have stated we will give you this mortgage consolidating up your past debts if you register for the voluntary credit limiting program. That way the debtor could not go credit seeking. Time limits could be set up, such as the term of the current mortgage. Limits could be set. Requirements of credit counseling or taking courses before further credit being granted.

The way it works now is the person has to screw up to lose access to credit. Wouldn't it be better if we could turn that around?
Sr. Member
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Mar 9, 2012
581 posts
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ROYinTO wrote:
Jul 16th, 2017 10:20 am
It is a shame that we cannot have a voluntary credit limiting mechanism through our credit reports.
If a problem gambler wants to they can register with the casino's not to allow them to gamble. Why can't we do the same for credit?

For example, in the case of the OP, the bank could have stated we will give you this mortgage consolidating up your past debts if you register for the voluntary credit limiting program. That way the debtor could not go credit seeking. Time limits could be set up, such as the term of the current mortgage. Limits could be set. Requirements of credit counseling or taking courses before further credit being granted.

The way it works now is the person has to screw up to lose access to credit. Wouldn't it be better if we could turn that around?
Getting banned from a casino barely work, and the problem gambler can just sign up to all-kind of online casino only so that doesn't work or drive to another city. Same for "banking" as the problem gambler could just apply with one of these pay-day loan companies or other casino shark loans. Self-control with always be the only option for all money problems since we live in a capitalism system.
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Dec 12, 2009
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skunkyjosh wrote:
Jul 16th, 2017 11:02 am
Same for "banking" as the problem gambler could just apply with one of these pay-day loan companies or other casino shark loans. Self-control with always be the only option for all money problems since we live in a capitalism system.
I hear you. I did think about the pay-day loan companies. Forcing them to check with the reporting agencies might limit their abuse of their customers.

Then again, the reason they have not been banned yet, is they are providing a "legal" source of funds. Take them out of the picture and you are left with the underworld. They are the lesser of 2 evils.
Deal Guru
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Aug 8, 2012
10198 posts
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BC
ROYinTO wrote:
Jul 16th, 2017 8:45 am
I guess I was lucky, only 3 downvotes @ ~ 10:45 PM last night.


I have to agree with @ace604



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?
LOL, only 3? I got 4. 7:45pm PT. heh heh. Someone went down vote happy.
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Member
Sep 22, 2014
244 posts
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Ottawa, ON
How did you get approved for so many credit cards and credit limit?

I think youre going to have to sell the home and repay the debt. Judging by your income, it's not going to be possible to repay the debt especially with the killer rates credit cards have. If you're in the gta area, might be a good idea to sell asap.
Member
May 28, 2007
452 posts
50 upvotes
I think sell the home and pay off the debt also. At least you'll have some money left over after all the debt is repaid. With high credit card interest rates and mortgage rates will probably go up too since rates are starting to rise. And there's no guarantee that when it comes time to renew your mortgage that anybody will want to lend you the money, and if they do, it will be at a high interest rate. Better to take what you can get back and have no stress in your life about the debt. And learn to control your spending.

I was in a similar situation when I was younger. It only involved about $25-30K in credit card debt because of all those gold digging fake girlfriends. And that's not counting all the other money I spent on them from my savings and paychecks. Hey, when your young, the wrong head does the thinking. Lucky for me, my brother helped me out by lending me the money to pay off the credit card debt and I repaid him over several years.
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Jan 27, 2004
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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. :)
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
renoldman wrote:
Jul 16th, 2017 7:46 am
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.
Same here. But no worries... Upvote Police are on the way!

But seriously... Why hasn't the OP asked for any budgeting advice?

I think the downvotes are from the OP... He doesn't want to hear what we are saying.
What does he want to hear? He wants a quick fix band aid solution so he doesn't have to downgrade his life style spending. He is hoping someone will tell him a great solution/loop hole that will consolidate all his debts... so he can stay in his house and continue on with his life.

The reality? OP can try to qualify for 2nd mortgage from a private mortgager or B lender @ 12%-19%... Which will set him back a few thousands worth of legal & admin fees. If his situation is that bad... he can opt for interest only payments. And renew his agreement every year costing a few more g's in admin fees.

That solution can work in a situation like OP... if he has a bunch of retail credit cards @ 20-30%... that 12-20% is like a life line.
Member
May 13, 2014
384 posts
56 upvotes
Vancouver, BC
Well, there is indeed a quick fix solution that will not require the OP to downgrade his lifestyle - on Monday, he can go and get a job that pays 5x as much as his current one does.

But putting the... fantasy elements... aside for a sec, I have a feeling that even if the OP succeeded in doing so, he and his family would just use the extra money to further upgrade their lifestyle to how someone making $1M per year would live, and in a couple more years this problem would come back again, just on a larger scale next time.
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Mar 9, 2012
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UrbanPoet wrote:
Jul 16th, 2017 9:53 pm
Same here. But no worries... Upvote Police are on the way!

But seriously... Why hasn't the OP asked for any budgeting advice?

I think the downvotes are from the OP... He doesn't want to hear what we are saying.
What does he want to hear? He wants a quick fix band aid solution so he doesn't have to downgrade his life style spending. He is hoping someone will tell him a great solution/loop hole that will consolidate all his debts... so he can stay in his house and continue on with his life.

The reality? OP can try to qualify for 2nd mortgage from a private mortgager or B lender @ 12%-19%... Which will set him back a few thousands worth of legal & admin fees. If his situation is that bad... he can opt for interest only payments. And renew his agreement every year costing a few more g's in admin fees.

That solution can work in a situation like OP... if he has a bunch of retail credit cards @ 20-30%... that 12-20% is like a life line.

He's asking for advices when it's too late. What is he expecting from us?

It's been mention several time what his options are:
1) Sell his property and pay off debts
2) Sell his property and pay off debts

HE DOES NOT QUALIFY ON REFINANCE. I don't even believe him he says he could qualify with a B- lender. He's a troll or a liar.
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
UrbanPoet wrote:
Jul 16th, 2017 9:53 pm
Same here. But no worries... Upvote Police are on the way!

But seriously... Why hasn't the OP asked for any budgeting advice?

I think the downvotes are from the OP... He doesn't want to hear what we are saying.
What does he want to hear? He wants a quick fix band aid solution so he doesn't have to downgrade his life style spending. He is hoping someone will tell him a great solution/loop hole that will consolidate all his debts... so he can stay in his house and continue on with his life.

The reality? OP can try to qualify for 2nd mortgage from a private mortgager or B lender @ 12%-19%... Which will set him back a few thousands worth of legal & admin fees. If his situation is that bad... he can opt for interest only payments. And renew his agreement every year costing a few more g's in admin fees.

That solution can work in a situation like OP... if he has a bunch of retail credit cards @ 20-30%... that 12-20% is like a life line.
I DIDN'T downvotes .

I don't have retail store credit card carrying balance.

Yeah, I didn't budgeting.
I didn't even do calculate my monthly income and expenses before.

I used excel and did my monthly income and my monthly expenses yesterday. But i never did that before.But, it's too late now.
I used excel ,my and my spouse total monthly minimum payment for all credit cards yesterday.

It's very tough to live with a autism kid. I spend more money to him too. It's going to be more tough to move to apartment with autism kid, because he going to disturb neighbours in apartment.He really like our house. I told him, we are going to move. He said, "No,No, I want to live here."

What will happen on my mortgage renewal date (Nov.2017) ,if i not sell house or not refinance beffore nov.17?
Is the bank going to renew my mortgage automatically or the bank do credit check on renewal date? is the bank to force me to sell the house or the bank going to sell the house?
Last edited by Avisnak on Jul 16th, 2017 11:24 pm, edited 10 times in total.
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skunkyjosh wrote:
Jul 16th, 2017 11:17 pm
He's asking for advices when it's too late. What is he expecting from us?

It's been mention several time what his options are:
1) Sell his property and pay off debts
2) Sell his property and pay off debts

HE DOES NOT QUALIFY ON REFINANCE. I don't even believe him he says he could qualify with a B- lender. He's a troll or a liar.
What about those really predatory ones that specialize in people about to lose their house?
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Mar 9, 2012
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UrbanPoet wrote:
Jul 16th, 2017 11:27 pm
What about those really predatory ones that specialize in people about to lose their house?
Let's remember the order if client default on his mortgage payments, with several lateness payments. 1- the government (income tax issues), 2- the city (city tax issues), 3- condo fees (n/a in this situation, 4- the banks (mortgage default payment). IMO is about to have lateness on either (2) or (4), it's only a matter of time. Are you asking if one of these predatory could give them a 200K loan and register 2nd on the collateral? That would only relieve him temporary because he would default on one of these 2 agreements if not both soon enough. The main issue is his income that cannot support anything, at all and it's TOO LATE anyway.
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Jan 31, 2006
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Avisnak wrote:
Jul 16th, 2017 11:24 pm
I DIDN'T downvotes .

I don't have retail store credit card carrying balance.

Yeah, I didn't budgeting.
I didn't even do calculate my monthly income and expenses before.

I used excel and did my monthly income and my monthly expenses yesterday. But i never did that before.But, it's too late now.
I used excel ,my and my spouse total monthly minimum payment for all credit cards yesterday.

It's very tough to live with a autism kid. I spend more money to him too. It's going to be more tough to move to apartment with autism kid, because he going to disturb neighbours in apartment.He really like our house. I told him, we are going to move. He said, "No,No, I want to live here."

What will happen on my mortgage renewal date (Nov.2017) ,if i not sell house or not refinance beffore nov.17?
Is the bank going to renew my mortgage automatically or the bank do credit check on renewal date? is the bank to force me to sell the house or the bank going to sell the house?
Either of the one can happen. The bank will auto renew your mortgage at a higher interest rate or refuse to renew your mortgage. This early you should start shopping around for a mortgage provider.
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Jul 18, 2016
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Avisnak wrote:
Jul 16th, 2017 11:24 pm
It's very tough to live with a autism kid. I spend more money to him too. It's going to be more tough to move to apartment with autism kid, because he going to disturb neighbours in apartment.He really like our house. I told him, we are going to move. He said, "No,No, I want to live here."
You don't need to move to an apartment. You can move to a house. Yes, you'll have a higher rent payment, but you will have also cleared all of your debt, and realized the equity in your house.

You have total income of about 80K with the government contributions. Look for a house with a rent of between $2000 and $2500. Spend the next couple of years looking for another job that gives you higher income. Cut up most of your credit cards, but NOT ALL ( to qualify for a future new mortgage, your credit report needs to have active open trade lines showing up.) Discipline yourself to spend within your means!

Here's a list of houses in Toronto area in that price range. There are TONS of units available for you. You can even rent out the basement to another tenant in your new rental house.

http://www.kijiji.ca/b-house-rental/gta ... 2000__2500

Get creative, buddy. Your position does not need to be a disaster. However, it will be a disaster if you continue down your current path!
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Dec 12, 2009
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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.
skunkyjosh wrote:
Jul 16th, 2017 11:17 pm
I don't even believe him he says he could qualify with a B- lender.
He has not qualified yet. The broker has him on his hook and is reeling him in. There is a predatory circle waiting at the other end of the line.
I'm sort of expecting the OP will hear something like "Sorry you don't qualify but we will buy your house. You can save the real estate fees." .

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