Drowning In Debt

Last Updated:
May 1st, 2015 1:12 pm

Tags:

None

SCORE
+2
2
0

Reply to ThreadReply

Search this thread

Search this thread

Feb 22nd, 2015 11:19 am

dtour [OP]: Jr. Member; Jan 9, 2011; 179 posts; 35 upvotes

Feb 22nd, 2015 11:19 am

Drowning In Debt

Need some advice. Over the years I've racked up a huge credit card debt. VISA and MC both nearly maxed. Tried calling both to lower the interest rates (around 19% atm) but denied.

I have no assets, used to own a condo, sold it and spent all the money. Currently live in an apartment and trying to pay off as much of the CC payments as I can. I've cut out everything. No frivolous spending at all
, just rent and food.

At this rate it will take years to pay off the CC and looking at how much interest I pay every month kills me.

Yeah I know I screwed up big time, I want to pay it off and working hard at it but is there anything else I can do to lighten the load a bit? I bank with ING. Used to have a Home equity line of credit with TD when I owned my condo but obviously don't qualify anymore.

89 replies

Feb 22nd, 2015 11:25 am

timach: Jr. Member; Oct 9, 2011; 139 posts; 47 upvotes

Feb 22nd, 2015 11:25 am

try getting a line of credit and pay off the credit cards with that?

+2

Feb 22nd, 2015 11:27 am

mpt: Deal Addict; Nov 9, 2003; 2689 posts; 282 upvotes

Feb 22nd, 2015 11:27 am

Try to consolidate the debt, you need to try every bank/credit union to get a loan at a cheaper rate, cut all expenses down to pretty much nothing for a year or so and committ yourself to getting out of this mess.

Sell anything of value you own to pay off the debt. Stay away from money loaning places like money tree.

+3

Feb 22nd, 2015 11:37 am

dtour [OP]: Jr. Member; Jan 9, 2011; 179 posts; 35 upvotes

Feb 22nd, 2015 11:37 am

Would I qualify for a Line of Credit? Been banking with ING for years, and still have an account with TD but have no money with them or used them in a long time. I do have a very good credit rating. I make around 40K and have 30K in CC debt. Definitely will stay away from those loan places. I'm really hoping to get something like a Line of credit, even if I have to pay 10% interest its better then the CC rates.

edit: Im self employed, I gross around 27-30K

Feb 22nd, 2015 11:45 am

Rosibal: Deal Addict; Jan 1, 2009; 4201 posts; 23424 upvotes; North York

Feb 22nd, 2015 11:45 am

Can you complement your income in some way? advertise yourself, your trade, etc -work a second job?

+3

Feb 22nd, 2015 11:45 am

mpt: Deal Addict; Nov 9, 2003; 2689 posts; 282 upvotes

Feb 22nd, 2015 11:45 am

Get a LoC, if you can't cut your spending to pretty much nothing for a year, sell anything of value to pay off the debt.

IE If you have a car, sell it and buy a beater until it's paid off, sell anything you can, you can always buy the stuff back later, right now your focus is to stop paying 20% interest

+3

Feb 22nd, 2015 11:53 am

masarwar: Deal Addict; Jan 13, 2014; 2557 posts; 1673 upvotes; Calgary

Feb 22nd, 2015 11:53 am

Hi, just to chip in I have helped people in your situation before. Please don't go and try to hit every bank and or credit Union . plan this out. You must first go to your own bank first. Who are your credit cards with? Also ING might be your best bet as well for a Loan. How much did you claim as income in your last two t1 general and NOA? And have you been in the same trade for the past two years. If you need further information please feel free to ask. Thanks

+1

Feb 22nd, 2015 12:08 pm

dtour [OP]: Jr. Member; Jan 9, 2011; 179 posts; 35 upvotes

Feb 22nd, 2015 12:08 pm

My VISA is with RBC and MC with Canadian Tire. My income was around 23K last few years. Since ING does not have any branches, can LofC application/approval all be done online? Wouldn't I have to speak to someone face to face?

Feb 22nd, 2015 12:13 pm

masarwar: Deal Addict; Jan 13, 2014; 2557 posts; 1673 upvotes; Calgary

Feb 22nd, 2015 12:13 pm

I would go with Scotia then as they are affiliates. Not sure how to contact ing. Maybe telephone banking? Are you in the taxi business? I would need your rent and other debt obligation to give you an idea for approval.

Please tell me how much you pay for rent? Debts you owe apart from credit cards? Income in 2012, 2013 and 2014? Tsorry about this question. It helps us determine what is your best course of action

+1

Feb 22nd, 2015 12:25 pm

2K6TSX: Deal Addict; Jan 9, 2011; 2142 posts; 620 upvotes; Toronto

Feb 22nd, 2015 12:25 pm

Depending on how much is owing to RBC, they are one of the first stops I would make. Ask them for a consolidation loan for both cards- worse case they will likely approved the loan for the RBC amount and not touch Cdn tire.

I don't think a LOC is the way to go- revolving credit will be harder to get approved. A consolidation loan gives you and the bank a fixed principle payment as well as a 'finish' date so your progress is visible

+2

Feb 22nd, 2015 12:26 pm

Mars2012: Moderator; May 28, 2012; 12121 posts; 4770 upvotes; Saskatoon

Feb 22nd, 2015 12:26 pm

dtour wrote: ↑Would I qualify for a Line of Credit? Been banking with ING for years, and still have an account with TD but have no money with them or used them in a long time. I do have a very good credit rating. I make around 40K and have 30K in CC debt. Definitely will stay away from those loan places. I'm really hoping to get something like a Line of credit, even if I have to pay 10% interest its better then the CC rates.

edit: Im self employed, I gross around 27-30K

dtour wrote: ↑My VISA is with RBC and MC with Canadian Tire. My income was around 23K last few years. Since ING does not have any branches, can LofC application/approval all be done online? Wouldn't I have to speak to someone face to face?

How much do you make? Are you qualified to do any other line of work? Self employment can be great, but sometimes a job with a regular pay check can be better. Good luck.

+2

Feb 22nd, 2015 12:41 pm

Wigglepuppy: Member; Mar 9, 2014; 457 posts; 215 upvotes

Feb 22nd, 2015 12:41 pm

ING/ Tangerine doesn't offer loans (minus RSP loans). Try TD, as you mentioned you still have an account there, though they say they aren't fans of doing "consolidation" loans.

Also consider PC Financial- they're usually more gracious than the big banks and may offer a term loan or LOC.

+1

Feb 22nd, 2015 12:48 pm

AhmadH: Newbie; Aug 15, 2011; 77 posts; 13 upvotes; Toronto, ON

Feb 22nd, 2015 12:48 pm

Just be careful of that trap that many people fall into. Moving your debt around may help with your interest rate, but if you continue to overspend you'll end up with an even bigger debt balance and maybe even more interest payments.

Interest Payment = Interest Rate x Debt Balance

The only way to get rid of debt is to significantly reduce spending. Cut your credit cards and get on a strict budget.

"I was broke until I discovered credit card rewards."
~ Nobody

+2

Feb 22nd, 2015 1:02 pm

dtour [OP]: Jr. Member; Jan 9, 2011; 179 posts; 35 upvotes

Feb 22nd, 2015 1:02 pm

Thank you everyone. I'm taking in all your advice and suggestions. Really appreciate the help. I'm going to see the banks Monday.

Feb 22nd, 2015 1:16 pm

mr_raider: Deal Expert; Feb 29, 2008; 29225 posts; 4846 upvotes; Montreal

Feb 22nd, 2015 1:16 pm

AhmadH wrote: ↑Just be careful of that trap that many people fall into. Moving your debt around may help with your interest rate, but if you continue to overspend you'll end up with an even bigger debt balance and maybe even more interest payments.

Once the debt is consolidated, cancel one credit card, and lower the limit on the other to 1000$ to avoid temptation.

+1

Feb 22nd, 2015 1:42 pm

gogoblender: Deal Addict; Oct 7, 2012; 1858 posts; 529 upvotes; Montreal

Feb 22nd, 2015 1:42 pm

dtour wrote: ↑Need some advice. Over the years I've racked up a huge credit card debt. VISA and MC both nearly maxed. Tried calling both to lower the interest rates (around 19% atm) but denied.

I have no assets, used to own a condo, sold it and spent all the money. Currently live in an apartment and trying to pay off as much of the CC payments as I can. I've cut out everything. No frivolous spending at all
, just rent and food.

At this rate it will take years to pay off the CC and looking at how much interest I pay every month kills me.

Yeah I know I screwed up big time, I want to pay it off and working hard at it but is there anything else I can do to lighten the load a bit? I bank with ING. Used to have a Home equity line of credit with TD when I owned my condo but obviously don't qualify anymore.

My cousin was in the same position as you, debt up to his eyeballs, with crazy interest rates
I lent him just five thousand dollars, a portion of the the total he owed, but he was dilligent in paying me back, 150.00 per month, a year and a half later, things went better for him, and he lumpsum'd it all back to me

Do you have any relatives that can maybe help you out like this, piecemeal? At least this way you can get a portion of the debt paid off at a much lower interest rate.

Keep up with your determination, you're posting here, looking for answers, stay positive
good luck!

+1

Feb 22nd, 2015 1:47 pm

Conquistador: Deal Fanatic; Feb 19, 2010; 6237 posts; 2986 upvotes

Feb 22nd, 2015 1:47 pm

dtour wrote: ↑Thank you everyone. I'm taking in all your advice and suggestions. Really appreciate the help. I'm going to see the banks Monday.

Good luck, dtour. It's nice to see one of these threads where somebody's being proactive in dealing with their debt rather than looking for a way to get out of it.

+2

Feb 22nd, 2015 2:08 pm

nik707: Sr. Member; Oct 10, 2010; 525 posts; 412 upvotes

Feb 22nd, 2015 2:08 pm

Talk with some credit card companies. I was in your situation making very little to even pay CCs. They suspended my payments for 6 months with 0 interest. After that, they paid some part of my minimum payments (1/3 rd) while I paid the rest.

They do have programs to help if you can't make full payments. In this way, you can try to pay off smaller ones or get enough cash to pay them off in 1 payments.

+1

Feb 22nd, 2015 2:59 pm

bbbc: Member; Aug 15, 2009; 320 posts; 98 upvotes; North America

Feb 22nd, 2015 2:59 pm

@dtour Forget all the nifty non-branch / Internet crap. I would start banking with a non-profit coop, aka a credit union which is member owned (meaning you own it). I don't know where you're based, but Ontario has DUCA and British Columbia has Coast Capital, both of which offer free chequing. Credit unions will work with you much better as a self-employed soul compared to the big banks. Vancity in BC really helps small businesses.

Credit card companies could give a rat's *** about working with you. They know you're in a bind and the interest rate will remain high since they see blood. I hope you keep requesting your credit reports (bimonthly) from the bureaus for free through the mail - http://www.cbc.ca/news/canada/how-to-ch ... -1.1185975 . Never pay for credit monitoring nor instant credit reports.

+2

Feb 22nd, 2015 3:40 pm

gogoblender: Deal Addict; Oct 7, 2012; 1858 posts; 529 upvotes; Montreal

Feb 22nd, 2015 3:40 pm

dtour wrote: ↑Need some advice. Over the years I've racked up a huge credit card debt. VISA and MC both nearly maxed. Tried calling both to lower the interest rates (around 19% atm) but denied.

I have no assets, used to own a condo, sold it and spent all the money. Currently live in an apartment and trying to pay off as much of the CC payments as I can. I've cut out everything. No frivolous spending at all
, just rent and food.

At this rate it will take years to pay off the CC and looking at how much interest I pay every month kills me.

Yeah I know I screwed up big time, I want to pay it off and working hard at it but is there anything else I can do to lighten the load a bit? I bank with ING. Used to have a Home equity line of credit with TD when I owned my condo but obviously don't qualify anymore.

This can help you as well, a bunch of us here at RFD all hooked into the offer when it came up, and it's still being offered till end of march. It'll give you your credit score, rating, credit history and keep you informed of changes as well as your continued progress over the next year, no charge ^^

Free Equifax monitoring for 1 yr as a result of Home Depot data breach

+1

Reply to Thread

Top

Thread Information

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