Personal Finance

Too much creditcard balance,Need advice

  • Last Updated:
  • Sep 30th, 2017 2:29 pm
Deal Addict
Sep 28, 2006
1872 posts
124 upvotes
Downtown Toronto
damn this thread makes me sad... I hope you learn from this and things work out for you. Take the advice in here seriously, This community all though cheap bootys know what they are talking about, for the most part.
Member
Jul 22, 2015
264 posts
46 upvotes
Kitchener, ON
OP said he accumulated this debt after his Dec 2014 car purchase so, how do you spend $200,000 in 2.5 years, plus your incomes and child benefits of approx $77,000?? That's close to $400,000 that you spent in 2.5 years (assuming you paid very little in income taxes)!!!!!! Or close to $160,000 per year for 2.5 years!!

Note: I realize part of the $200,000 owing is also interest.
Member
User avatar
Aug 28, 2005
294 posts
47 upvotes
OP, here in Alberta there is a government-sponsored organization (Money Mentors) that gives your first meeting free to assess your personal finance situation and can help give you guidance in tackling your debt (I think they can even help you get setup with proper debt consolidation). If you don't have any one else you trust to advise you on this matter that you are already talking to, it might be worth looking to see if Ontario has a similar program to get you started.

One thing I've heard before is that if you are talking to a financial planner or a broker and you are not paying them, then they aren't really working for you (i.e. they may just be trying to sell you their credit/investment products under the guise of being helpful). Not saying that everyone is like this, but just be mindful of who you're getting advice from and what their end goal is when you're out and about.
Jr. Member
Mar 30, 2010
101 posts
36 upvotes
Calgary
Do not sell your house until you speak to a credit counselor. Find a credit counseling place immediately. (I'm in Alberta and don't know what options are available where you live).

If you need to declare bankruptcy, I believe you should be able to keep the house as your need a primary residence. Moving your credit card debt to your mortgage/home line is the worst thing you can do because you are turning unsecured debt into secured debt. It only makes sense to do that if you will not rack up the credit cards again, and we know that is not the way you roll.

This place is free and looks like it may belegit based on a quick Google: http://www.creditcanada.com/
Member
Aug 18, 2014
265 posts
122 upvotes
Markham, ON
This is weird...
OP post was so clearly written and organized....very unlike people who get themselves in these sort of debt problems... (e.g. messy ppl who have no clue how much they make and how much they spend, they waste their money without thinking...and usually they can't even explain their own financial situation clearly)

Did you talk to the bank about actually refinancing your house? Or perhaps get a LOC that's 20% lower interest than your house...
Tell them you need the money for renovation lol. I don't think they check as long as your mortgage is in good standing with them and your property is worth a lot more than the mortgage amount.
Deal Addict
User avatar
Mar 23, 2008
4422 posts
2056 upvotes
Edmonton
pinkdonut wrote:
Jul 18th, 2017 4:49 pm
This is weird...
OP post was so clearly written and organized....very unlike people who get themselves in these sort of debt problems... (e.g. messy ppl who have no clue how much they make and how much they spend, they waste their money without thinking...and usually they can't even explain their own financial situation clearly)

Did you talk to the bank about actually refinancing your house? Or perhaps get a LOC that's 20% lower interest than your house...
Tell them you need the money for renovation lol. I don't think they check as long as your mortgage is in good standing with them and your property is worth a lot more than the mortgage amount.
They don't have the income to support an LOC on top of their mortgage and credit cards. And LOC's are usually at a higher interest rate than a mortgage.

Plus given the OP's past history... They'd transfer all the credit card balances over to the LOC, and then run their credit cards up again anyway... Since they've done that already in the past.

C
Deal Addict
User avatar
Jan 31, 2006
4324 posts
403 upvotes
Toronto
pinkdonut wrote:
Jul 18th, 2017 4:49 pm
This is weird...
OP post was so clearly written and organized....very unlike people who get themselves in these sort of debt problems... (e.g. messy ppl who have no clue how much they make and how much they spend, they waste their money without thinking...and usually they can't even explain their own financial situation clearly)

Did you talk to the bank about actually refinancing your house? Or perhaps get a LOC that's 20% lower interest than your house...
Tell them you need the money for renovation lol. I don't think they check as long as your mortgage is in good standing with them and your property is worth a lot more than the mortgage amount.
Read Op's post #1, he mention the house was refinance twice already. On the second time, the bank asked him to cancelled all his credit card but he did not do it.
Deal Addict
User avatar
Jan 31, 2006
4324 posts
403 upvotes
Toronto
gingersb wrote:
Jul 18th, 2017 2:53 pm
Do not sell your house until you speak to a credit counselor. Find a credit counseling place immediately. (I'm in Alberta and don't know what options are available where you live).

If you need to declare bankruptcy, I believe you should be able to keep the house as your need a primary residence. Moving your credit card debt to your mortgage/home line is the worst thing you can do because you are turning unsecured debt into secured debt. It only makes sense to do that if you will not rack up the credit cards again, and we know that is not the way you roll.

This place is free and looks like it may belegit based on a quick Google: http://www.creditcanada.com/
Since he still owed the bank $371K so the house is not considered his. He already roll his credit card balance to his mortgage twice already.
Jr. Member
Mar 30, 2010
101 posts
36 upvotes
Calgary
cgtlky wrote:
Jul 18th, 2017 8:37 pm
Since he still owed the bank $371K so the house is not considered his. He already roll his credit card balance to his mortgage twice already.
Well I don't know for sure - which is why he needs to talk to a reputable credit counsellor. Do you have specific bankruptcy expertise?


Under Canadian bankruptcy law a secured lender, like a mortgage holder, is not permitted to cancel their loan simply because you have declared bankruptcy. If you are up to date with your payments, you can continue to pay your mortgage, even while you are bankrupt.

https://bankruptcy-canada.com/bankruptc ... ankruptcy/
Deal Addict
Dec 16, 2005
2605 posts
652 upvotes
gingersb wrote:
Jul 18th, 2017 9:49 pm
Well I don't know for sure - which is why he needs to talk to a reputable credit counsellor. Do you have specific bankruptcy expertise?


Under Canadian bankruptcy law a secured lender, like a mortgage holder, is not permitted to cancel their loan simply because you have declared bankruptcy. If you are up to date with your payments, you can continue to pay your mortgage, even while you are bankrupt.

https://bankruptcy-canada.com/bankruptc ... ankruptcy/
I believe your house can be sold if you declare bankruptcy. It depends on how much you owe and how much equity is in your house.

In this case, the house has more than enough equity to pay off all debts. It isn't fair to the lenders to allow you to keep all the equity.

I believe the limit is quite low. The bankruptcy exemption provides for stuff like clothes, car (depending on value), etc. But the house is only exempt if there is minimal equity.
[OP]
Jr. Member
Aug 16, 2015
164 posts
32 upvotes
Toronto, ON
I talked to a guy who work in my bank, yesterday. He said, i can try to apply to consolidate my credit card balances to mortgage through their B-lender service.
He said, he will tell the head office that i keep paying minimum payment.If the bank approve me, he going to cancel all our credit cards.He said, if the bank not approve me, then i can't get approve everywhere i try, even mortgage broker.
He adviced me 2 options:

1. try to apply to consolidate my credit card balance into mortgage through their B-lender service.
2. If not approved, then sell the house.

I talked to a Mortgage broker, He said, he can try to consolidate credit card balance into mortgage , but i have to pay ~ $18000 fees

I think, i will try to do what the bank guy said.
Deal Addict
User avatar
Jan 31, 2006
4324 posts
403 upvotes
Toronto
Avisnak wrote:
Jul 18th, 2017 11:38 pm
I talked to a guy who work in my bank, yesterday. He said, i can try to apply to consolidate my credit card balances to mortgage through their B-lender service.
He said, he will tell the head office that i keep paying minimum payment.If the bank approve me, he going to cancel all our credit cards.He said, if the bank not approve me, then i can't get approve everywhere i try, even mortgage broker.
He adviced me 2 options:

1. try to apply to consolidate my credit card balance into mortgage through their B-lender service.
2. If not approved, then sell the house.

I talked to a Mortgage broker, He said, he can try to consolidate credit card balance into mortgage , but i have to pay ~ $18000 fees

I think, i will try to do what the bank guy said.
The bank already give you their answer.

So, how much have you earned back from selling the stuff at your basement thru kijiji? Is it enough to payoff 25% of the cc balance?
Jr. Member
User avatar
Jun 23, 2017
197 posts
44 upvotes
Toronto, ON
OP, it is encouraging that you have sought professional financial advice to review your situation. That is a great start and very necessary.
Deal Addict
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Jun 8, 2008
3563 posts
1008 upvotes
Toronto
905P4N6 wrote:
Jul 19th, 2017 9:06 am
OP, it is encouraging that you have sought professional financial advice to review your situation. That is a great start and very necessary.
I'm not so sure. He's gone to his bank and appears to just be consolidating loans, and paying an $18000 (!) penalty to do so. Basically, he's back to one of his own suggestions in his original post and hasn't actually *done* anything else. OP wants an easy out and despite his assurances that he's learned and changed, he's heading down the same road as before. OP needs to stop, go seek some professional help about his debt (NOT by the bank he's hoping will bail him out) and only THEN make a decision. OP keeps running to the bank to help him out, they do, and every time, he ends up in worse shape.

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