Personal Finance

Too much creditcard balance,Need advice

  • Last Updated:
  • Jul 21st, 2017 1:49 am
Member
May 28, 2007
418 posts
46 upvotes
From those debt counselor ads I've seen on TV, there was a question posed if someone declared bankruptcy, does that mean they will also lose their house? The lady on TV said not necessarily, you can keep your home. So would it be possible for the OP to keep his home and declare bankruptcy to clear up the credit card debts, and at the same time he would be sticking it to those greedy banks which pushed the cards on him in a way.
Deal Fanatic
User avatar
Aug 8, 2012
9578 posts
3466 upvotes
BC
RCML27 wrote:
Jul 14th, 2017 6:06 pm
Remarks like this is just rubbing salt in an open wound. Have some empathy for his situation. Although he should have learned to be responsible after the first mortgage refinancing.

I don't see it written anywhere that his wife is taking any responsibility for her credit card debts. She's just blaming him.
Well what if she just buys groceries and clothing and pays for household expenses and expect hubby to pay the bills and instead of doing that he's been paying min. payments and hoarding hot deals?

She may be to blame for not monitoring, but she could possibly be not to blame for WHAT the spending was on her cards is all I'm saying. It might not be $50k of electronics ... it could be $50k of bills, food, clothing, etc. PLUS interest / fees thanks to only min. payments being paid.

e.g. I login to banking and pay bills for both of us ... if I funnelled money away from what was supposed to be payments to my wife's cards towards my hot-deal-abusing cards and only paid min. payments I could see her having hit $50k in a couple years :)
... although she doesn't have $50k of total limit probably :)
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
User avatar
Dec 28, 2007
3331 posts
547 upvotes
Alberta
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 .
So what did she buy to have $50K in debt on a $29K income? As others have mentioned, you need to get rid of your credit cards and go with cash budget only. If you don't have the money, you can't buy anything. I can't even imagine how much interest you are paying on your credit cards.
Newbie
Jan 8, 2017
56 posts
19 upvotes
Post history says car loan was 72 months @ 2.9% FYI. Surprised credit was good enough to get that with 59k HH gross income, but I guess car dealers wanna move inventory.

I second advice about seeking help around the impulse to buy. I have a relative with mental health issues (op: I am not saying you have, although you should admit there is something unhealthy driving this prolonged and unsustainable spending spree). He bought a LOT of expensive things (luxury clothes, watches, cars, etc.) while earning very little. All financed through debt. In his case, it obviously made him feel like "someone" to throw down cards/cash and buy expensive things. Momentary "happiness" but nothing fulfilling. Eventually of course it caught up. Bank of mom only goes so far. When you're (with your wife) the one anchoring your family here in Canada, you are the one who's responsible.

The current situation has many possible solutions that posters above have outlined. There is light. What is important is to understand why you did this. It is simply not rational to rack up $200k of debt on $59k HH income. Your post history suggests you like buying things you do not need. I don't think you bought them to sell. You just bought them in the same way a stamp collector buys stamps with no real world value. This is not a good thing to do because you have a family, including a child with complex needs beyond that of the typical child. They are the priority.

Your credit score is shot to hell at this point, so that will likely take care of you obtaining credit in the near future. But that doesn't stop you making poor spending decisions with a debit card. Paradoxically, you and your wife seem responsible in a way. You are paying the bills (minimally)? Both working, taking care of your kids, etc. Ensure that you can come out of this as better people. This post might come off as harsh or dramatic; it is not intended as such. I don't think you're trolling. I genuinely wish you well. One final piece of bluntness: I see very little introspection (insight, self awareness, self analysis, understanding of motives) in your posts in this thread. If you cannot yourself be introspective and figure out why you got into this situation, seek professional help. Counselling etc.

Good luck.
[OP]
Jr. Member
Aug 16, 2015
161 posts
18 upvotes
Toronto, ON
Djb990 wrote:
Jul 15th, 2017 12:37 am
Post history says car loan was 72 months @ 2.9% FYI. Surprised credit was good enough to get that with 59k HH gross income, but I guess car dealers wanna move inventory.

I second advice about seeking help around the impulse to buy. I have a relative with mental health issues (op: I am not saying you have, although you should admit there is something unhealthy driving this prolonged and unsustainable spending spree). He bought a LOT of expensive things (luxury clothes, watches, cars, etc.) while earning very little. All financed through debt. In his case, it obviously made him feel like "someone" to throw down cards/cash and buy expensive things. Momentary "happiness" but nothing fulfilling. Eventually of course it caught up. Bank of mom only goes so far. When you're (with your wife) the one anchoring your family here in Canada, you are the one who's responsible.

The current situation has many possible solutions that posters above have outlined. There is light. What is important is to understand why you did this. It is simply not rational to rack up $200k of debt on $59k HH income. Your post history suggests you like buying things you do not need. I don't think you bought them to sell. You just bought them in the same way a stamp collector buys stamps with no real world value. This is not a good thing to do because you have a family, including a child with complex needs beyond that of the typical child. They are the priority.

Your credit score is shot to hell at this point, so that will likely take care of you obtaining credit in the near future. But that doesn't stop you making poor spending decisions with a debit card. Paradoxically, you and your wife seem responsible in a way. You are paying the bills (minimally)? Both working, taking care of your kids, etc. Ensure that you can come out of this as better people. This post might come off as harsh or dramatic; it is not intended as such. I don't think you're trolling. I genuinely wish you well. One final piece of bluntness: I see very little introspection (insight, self awareness, self analysis, understanding of motives) in your posts in this thread. If you cannot yourself be introspective and figure out why you got into this situation, seek professional help. Counselling etc.

Good luck.
You right. I almost forgot how many months car loan. It's 72 months (not 84 months).Honda Dealer only checked my credit (not my spouse) and approved me.Honda dealer not strict about credit.Honda dealer just want to sell car.The car is only in my name.
[OP]
Jr. Member
Aug 16, 2015
161 posts
18 upvotes
Toronto, ON
Do you guys really want to see my all credit card balances and minimum payment? It's take my time.
I use my time to put add on kijiji to sell my items.
Deal Addict
Feb 10, 2013
3627 posts
468 upvotes
Richmond
And here I thought we Asians were a frugal bunch,good at scraping pennies. Maybe go take some penny pinching lessons and living on a shoestring budget lessons from your mom.
Sr. Member
User avatar
Mar 9, 2012
547 posts
173 upvotes
Sell your property, make a profit. Hide the money. Declare bankruptcy.
Hope you don't have any investments....

Good luck
Deal Addict
Dec 12, 2009
2151 posts
655 upvotes
Toronto
Avisnak wrote:
Jul 15th, 2017 1:47 am
Do you guys really want to see my all credit card balances and minimum payment? It's take my time.
I use my time to put add on kijiji to sell my items.
Posting is up to you.
You should be taking the time to put all your financials together.
You already admitted you have a problem, take the next step to see how good or bad it really is.
For example, a couple of posts up you admit you didn't know the term length of the car loan.

I don't think you have $200K of stuff to sell to make the problem go away. You are going to have to do this sooner or later. Make it your your choice rather than a creditors.
Deal Addict
User avatar
Jan 31, 2006
4195 posts
371 upvotes
Toronto
ROYinTO wrote:
Jul 15th, 2017 7:39 am
Posting is up to you.
You should be taking the time to put all your financials together.
You already admitted you have a problem, take the next step to see how good or bad it really is.
For example, a couple of posts up you admit you didn't know the term length of the car loan.

I don't think you have $200K of stuff to sell to make the problem go away. You are going to have to do this sooner or later. Make it your your choice rather than a creditors.
Avisnak wrote:
Jul 15th, 2017 1:47 am
Do you guys really want to see my all credit card balances and minimum payment? It's take my time.
I use my time to put add on kijiji to sell my items.
I agree with ROYinTO. You post the details of your credit card balances now or soon will not matter at all. You sell all your stuff in the basement even your car will not get your problem away.

As of today, you still have a debt escape route, sell your house, cut all your credit card. No headache, asset is ~$150K. Don't wait for the creditor to take over your future.
[OP]
Jr. Member
Aug 16, 2015
161 posts
18 upvotes
Toronto, ON
Can i try to consolidate my credit card balances into one mortgage with mortgage broker (B lender) before decide to sell house?
Deal Addict
Dec 12, 2009
2151 posts
655 upvotes
Toronto
bewiseman wrote:
Jul 15th, 2017 9:57 am
He has an 800K house,
There has been nothing to confirm the value. He thinks he has a house worth $800K.
Sr. Member
User avatar
Mar 9, 2012
547 posts
173 upvotes
Bankruptcy is your only option, your income is terrible for all your debts.

Refinance @ 571K @ 2.64% on 360 months would have been your only option but you won't qualify with your debt ratio.
$2,108.17/monthly would be your payment on 30 years. Can you support it? No you can't and you know it. You have other payments (tax, school tax, car payment, etc)
Even if your bank would give you cash-back at renewal, it still won't be enough to make a difference.

I repeat, bankruptcy is your only option.
Sr. Member
User avatar
Mar 9, 2012
547 posts
173 upvotes
bewiseman wrote:
Jul 15th, 2017 9:57 am
OK, what am I missing here, everybody?

He has 370K remaining balance. He wants to tag on 200K of credit card debt, so he can consolidate all debt into one mortgage. That's a 570K mortgage. He has an 800K house, so he has $230K of equity in the house.

Even with a B lender, on 60K of income, how does he qualify for a 570K mortgage?

OP, this idea sounds crazy to me.
With a 60K income, you can qualify max for around 300K mortgage I would say. But I'm not a mortgage broker.
Deal Addict
Jul 22, 2015
1143 posts
343 upvotes
Saint-Hubert, QC
Did we get a post detailing all the debts and income?
I do not understand how banks/creditors would give away that much money on such low income.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)