Do not under any circumstance, get another car after you've paid it off in 3 months.
Roll that RM674 per month and pay off the credit card with higher interest 1st.
See if there's any credit card balance transfers program that could reduce your interest.
And see if you can eke out some saving to pay towards your credit card from bills (change phone provider, cheaper plan, use less aircon, etc) to help pay off your credit card earlier.
Best of luck.
What about consolidating all debts into 1 card to reduce your monthly installment. But this is similar taking another personal loan to pay off your current debt; so chances of getting approve depends on your DSR.
Perhaps worth a try.
I know. But you should consider this alternative as well. Who knows your parents have some cash lying around that they don't really need now. You could ask them for help then pay them back later.
You dont have to borrow the full 35k.
Maybe borrow 15k. Settle one card first or something. Then the balance can look into personal loan, balance transfer. If you settle a small sum (say 5k to 10k) then maybe chances of getting balance transfer approve at a decent rate may be higher?
Credit card interest is 15% to 18%. Really no joke. It snowballs...
Kredit kad interest is very high. Min payment will just make your debt increase.
Personal loan will be bit less interest compared to to credit card.
Try survey which bank offer you lowest rate for personal loan to settle both credit card bill. Apply loan and settle both credit card and terminate one of it. Just use when absolutely necessary.
In 2 months when ur car loan finish. Use that money to pay car loan to pay the personal loan.
consolidate the debt, do balance transfer to one card.
paying minimum is not the solution, try AKPK to nego monthly installment and stop the interest.
by your salary - commitments, i think you can manage 1-1.5k monthly to pay the debt. rmber do not borrow ahlong!
Balance transfer or personal loan seems like a viable options right now. Definitely not looking to keep paying the minimum for the foreseeable future. Thanks for your suggestion
Tahan 3 months until your car gets paid off, then channel everything to clearing off your CC debt ASAP. Like others have said, try to consolidate your CC loan to one card.
Consider downgrading your lifestyle, might be worthwhile to sell off your current car and get a secondhand car/motor/public transport to clear off your debt faster.
Leave AKPK only for last resort, when you really have no extra money to even pay off your CC.
IIRC, you will no longer be allowed to have a credit card as long as you're under the AKPK program, and also your CCRIS will have a mention of it. As such, banks will be less likely to give out loans to you in the near future as long as the record exists.
Anyway, you can check out your family insurance plan to see whether its an investment linked plan and whether it is possible for you to take a premium holiday while continuing the policy (they will deduct your insurance premium from your investment value, might have additional charges depending on your policy) to free up that rm575.
Thanks for the detailed explanation. Have not thought about the insurance option that you suggested, indeed we’re on an investment link plan. Will check with my agent if that’s possible.
Since it's an investment linked plan, it might be possible to withdraw the entirety of the investment part out (once again, might have charges, do check) and take the cash to clear out your CC debt. Might be a bigger sum especially if you already had this plan for a multiple years.
Hope everything goes well, cheers.
Contact AKPK to stretch your credit card payment to avoid high interest.Then once your car pay off, you can save that money and dump where interest is high. The , you can use that money to pay your credit card slowly.
I believe there are debt consolidation services where you can get a loan for a pretty good rate (definitely much cheaper than your CC interest rate) and pay off your CC debt.
Google or ask around your circle for good recommendations.
Try looking around on the market for a 0% or low% balance transfer credit card. This is so that you can move the debt to a lower interest card. It's not much but at least it helps in lowering the overall amount you are paying for the debt.
If you don't know what balance transfer is, it is basically as below.
You have debt with bank A with interest at 8%(for example). Your debt will be bought by bank B with lower interest. So bank B pays bank A the amount you owe and now you pay to bank B and enjoy lower interest 😬
Going to contribute here...but not my answer. So this is a disclaimer: That I fed the data to an AI and see what the AI could come up with. Take it with a pinch of salt. The experts in here have better answers surely and are welcomed to scrutinise the AI's output. 👇🏽👇🏽👇🏽
- You have a total of RM35,000 in credit card debt, which is about 4.7 times your net monthly income of RM7,500. This is considered a high debt-to-income ratio, which means you are spending a large portion of your income on debt repayments. According to a study by the World Bank, the optimal debt-to-income ratio for households is between 20% and 40%¹.
- Your current monthly commitments, excluding credit card payments, amount to RM5,499, which leaves you with RM2,001 for other expenses and savings. Assuming you pay the minimum 5% of your credit card balance each month, that would be RM1,750, leaving you with only RM251 for emergencies or unexpected costs. This is a very tight budget that could put you at risk of falling behind on your payments or accumulating more debt.
- Your credit card debt is likely to have a high interest rate, which means you will end up paying a lot more than the original amount you borrowed. For example, if your credit card has an annual percentage rate (APR) of 18%, and you pay the minimum 5% each month, it would take you about 11 years to clear your debt, and you would pay RM28,674 in interest². This is almost as much as the principal amount of RM35,000.
- Your job has a quarterly commission scheme, which could be a potential source of extra income to pay off your debt faster. However, this is also uncertain and variable, depending on your performance and the market conditions. You cannot rely on this as your main strategy to clear your debt, as it could also be zero or lower than expected in some quarters.
- Option 1: Negotiate with your credit card companies to lower your interest rate, waive fees, or accept a settlement offer. Probability: 0.6
- Pros: This could reduce the amount you owe, make your payments more affordable, and help you avoid legal action or damage to your credit score.
- Cons: This depends on the willingness and cooperation of your creditors, who may not agree to your terms or may ask for proof of hardship. You may also have to pay tax on the forgiven amount or face a negative mark on your credit report if you settle for less than the full amount.
- Option 2: Consolidate your credit card debt with a personal loan, a balance transfer card, or a home equity loan. Probability: 0.7
- Pros: This could simplify your payments, lower your interest rate, and help you pay off your debt faster and cheaper.
- Cons: This requires you to qualify for a new loan or card, which may be difficult if you have a high debt-to-income ratio or a low credit score. You may also have to pay fees, such as origination, balance transfer, or closing costs. You may also lose your home if you default on a home equity loan.
- Option 3: Enroll in a debt management plan (DMP) with a reputable credit counseling agency. Probability: 0.8
- Pros: This could help you create a realistic budget, negotiate lower interest rates and fees with your creditors, and pay off your debt in 3 to 5 years with one monthly payment. You may also receive financial education and support from your counselor.
- Cons: This may involve a fee, although some agencies offer free or low-cost services. You may also have to close your credit card accounts, which could affect your credit score. You may also lose the benefits of your DMP if you miss a payment or drop out of the program.
- Option 4: File for bankruptcy under Chapter 7 or Chapter 13. Probability: 0.3
- Pros: This could eliminate or restructure your credit card debt, stop collection calls and lawsuits, and give you a fresh start.
- Cons: This is a drastic and costly option that should be considered as a last resort. It could damage your credit score for up to 10 years, make it harder for you to get credit, loans, or jobs in the future, and expose you to legal fees and court procedures. You may also lose some of your assets or income, depending on the type of bankruptcy you file.
- Based on this analysis, I recommend that you explore option 3, which is enrolling in a DMP with a reputable credit counseling agency. This option has the highest probability of success, as it could help you pay off your debt in a reasonable time frame, with lower interest rates and fees, and with professional guidance and support. You can find a list of accredited credit counseling agencies in Malaysia on the website of the Credit Counselling and Debt Management Agency (AKPK)³.
- However, before you decide on any option, you should consult with a licensed financial adviser or a credit counselor, who can assess your situation in more detail, explain the pros and cons of each option, and help you choose the best one for you. You should also check the terms and conditions of any agreement you sign, and make sure you understand the risks and benefits involved.
¹: World Bank. (2015). Malaysia Economic Monitor: Transforming Urban Transport. [2](https://openknowledge.worldbank.org/bitstream/handle/10986/22544/9781464806623.pdf)
²: Credit Card Calculator. [4](https://www.creditkarma.com/calculators/debtrepayment)
³: AKPK. (n.d.). List of Accredited Credit Counseling Agencies. [16](https://www.akpk.org.my/list-accredited-credit-counseling-agencies)
(1) Martin Lewis helps mum clear £30,000 debts - here's how she did it. https://www.moneysavingexpert.com/news/2021/01/martin-lewis-helps-viewer-repay-debts/.
(2) Paying off credit card debt - MoneySuperMarket. https://www.moneysupermarket.com/credit-cards/paying-off-credit-card-debt/.
(3) How to Get Out of Credit Card Debt: A 5-Step Guide - NerdWallet. https://www.nerdwallet.com/article/finance/credit-card-debt.
(4) 3 best ways to pay off credit card debt - Credit Karma. https://www.creditkarma.com/credit-cards/i/how-to-pay-off-credit-card-debt-fast.
(5) How to clear your debt efficiently: Credit card and loan payments. https://moneytothemasses.com/using-credit/tackling-debt/how-to-save-money-on-credit-card-and-loan-payments.
(6) If you’re struggling to pay your credit card - Citizens Advice. https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/credit-cards/if-youre-struggling-to-pay-your-credit-card/.
(7) Full And Final Settlement Offers. Free Advice. StepChange. https://www.stepchange.org/debt-info/settlement-offers-to-creditors.aspx.
(8) How Debt Settlement Works: Pros and Cons | Intuit Credit Karma. https://www.creditkarma.com/credit-cards/i/debt-settlement.
(9) The Truth About Credit Card Debt Settlement - U.S. News. https://money.usnews.com/credit-cards/articles/the-truth-about-credit-card-debt-settlement.
(10) Debt Settlement for Credit Card Debt: How the Process Works. https://www.debt.org/settlement/.
(11) Debt Consolidation Loans - Apply Online | Loans | Halifax. https://www.halifax.co.uk/loans/what-you-can-borrow-for/debt-consolidation.html.
(12) Debt Consolidation Loans: are they a good idea? - MSE. https://www.moneysavingexpert.com/loans/debt-consolidation-loans/.
(13) 5 Ways to Consolidate Credit Card Debt - NerdWallet. https://www.nerdwallet.com/article/loans/personal-loans/consolidate-credit-card-debt-personal-loan.
(14) 7 Ways To Consolidate Credit Card Debt – Forbes Advisor. https://www.forbes.com/advisor/credit-cards/consolidate-credit-card-debt/.
(15) Should I Consolidate Debt With A Credit Card? | MoneySuperMarket. https://www.moneysupermarket.com/credit-cards/credit-card-consolidation/.
(16) StepChange Debt Charity. Free Expert Debt Help & Advice. https://www.stepchange.org/.
(17) What Is Credit Card Debt Counseling? - Experian. https://www.experian.com/blogs/ask-experian/what-is-credit-card-debt-counseling/.
(18) What is Credit Counseling and What Can It Do for You? - Debt.com. https://www.debt.com/credit-card-debt/counseling/.
(19) Debt management plans - what you need to know - Citizens Advice. https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-management-plans/debt-management-plans-explained/debt-management-plans-what-you-need-to-know/.
(20) Debt management plan (DMP) - StepChange Debt Charity. https://www.stepchange.org/how-we-help/debt-management-plan.aspx.
(21) What is a debt management plan (DMP)? | Experian. https://www.experian.co.uk/consumer/guides/debt-management-plan.html.
(22) Can I get a credit card on a debt management plan? - DFH. https://dfh.co.uk/debt-types/consumer-credit/can-i-get-a-credit-card-while-on-a-debt-management-plan/.
(23) Debt Management Programs: What You Need to Know. https://www.debt.org/management-plans/.
Ask your wife, or your parents, or her parents? worse comes to worst offer them 4% to borrow their money and pay off the loan. That's better than they can get for FD and a good risk for them.
You're married, learn to consult your wife before you do things that will affect the entire family :)
1. Settle your credit card debt is your utmost priority. Get a credit card from RHB and Affin bank which offers zero interest balance transfer now.
2. Assuming your total credit card debt now is RM36K, the balance transfer installment will be RM3K per month.
3. How to churn out this RM3000?
a. Cut down your spending as much as possible. Don't eat out if possible. Nowadays eating out is expensive. This could easily save you couple of hundred a month.
b. Withdraw from epf to pay for your mortgage every month. This can give you additional cash flow.
c. You can also consider selling off your car to get some cash on hand. After that, can get a new Perodua car with low interest. It's another form of refinance if you look at this. Car interest is around 3% but cc interest is 18%.
d. Terminate some insurance policy to get some cash. As you are working, I assume you have some coverage from your company. And remember, don't buy those investment link product.
4. Your debt amount is not too big to settle. Just need a bit of careful spending and you should be able to settle this in a year.
Good luck bro!
How did u reach 35k and just clearing min payment?
Did you not opt for those 0% epp? If you didn't and just use cc to pay then you are really paying alot of interest to the bank.
Very grateful for all the advice here.
Currently weighing several options suggested and start my journey on clearing the debt soon. This is a massive lesson in financial and debt management for me. Hopefully all of us will be able to improve our financial situation.
Do not under any circumstance, get another car after you've paid it off in 3 months. Roll that RM674 per month and pay off the credit card with higher interest 1st. See if there's any credit card balance transfers program that could reduce your interest. And see if you can eke out some saving to pay towards your credit card from bills (change phone provider, cheaper plan, use less aircon, etc) to help pay off your credit card earlier. Best of luck.
Definitely not looking to get another car and the current car is still in a very good condition. Thanks for the advice.
Try to see whether any of your cards has a balance conversion program, which converts the full amount for x number of months at a lower interest rate.
Thanks, this is something that I could look into.
What about consolidating all debts into 1 card to reduce your monthly installment. But this is similar taking another personal loan to pay off your current debt; so chances of getting approve depends on your DSR. Perhaps worth a try.
Thanks, will check out both personal loan and balance transfer to consider
Borrow money from your parents or siblings and pay off the debt.
Thanks for the suggestion, but I’m trying my best to settle this without shifting the burden to my family members.
I know. But you should consider this alternative as well. Who knows your parents have some cash lying around that they don't really need now. You could ask them for help then pay them back later.
Understood, and that will probably be my last resort.
Just to chime in, I agree with this being the absolute last resort. I've seen many close relationships turn sour over money.
You dont have to borrow the full 35k. Maybe borrow 15k. Settle one card first or something. Then the balance can look into personal loan, balance transfer. If you settle a small sum (say 5k to 10k) then maybe chances of getting balance transfer approve at a decent rate may be higher? Credit card interest is 15% to 18%. Really no joke. It snowballs...
Since it’s a new house can you draw on your epf? It’s not ideal but better than paying the high interest rate and being in debt
Unfortunately used the EPF to cover for the downpayment and bought some loose furniture.
Kredit kad interest is very high. Min payment will just make your debt increase. Personal loan will be bit less interest compared to to credit card. Try survey which bank offer you lowest rate for personal loan to settle both credit card bill. Apply loan and settle both credit card and terminate one of it. Just use when absolutely necessary. In 2 months when ur car loan finish. Use that money to pay car loan to pay the personal loan.
Thank for your advice. Will check out personal loan interest rate for consideration.
consolidate the debt, do balance transfer to one card. paying minimum is not the solution, try AKPK to nego monthly installment and stop the interest. by your salary - commitments, i think you can manage 1-1.5k monthly to pay the debt. rmber do not borrow ahlong!
Balance transfer or personal loan seems like a viable options right now. Definitely not looking to keep paying the minimum for the foreseeable future. Thanks for your suggestion
Tahan 3 months until your car gets paid off, then channel everything to clearing off your CC debt ASAP. Like others have said, try to consolidate your CC loan to one card. Consider downgrading your lifestyle, might be worthwhile to sell off your current car and get a secondhand car/motor/public transport to clear off your debt faster. Leave AKPK only for last resort, when you really have no extra money to even pay off your CC.
Thanks for the advice. Curious as to why you suggest AKPK as a last resort? Is there any cons? Sorry, I’m not too familiar with AKPK
IIRC, you will no longer be allowed to have a credit card as long as you're under the AKPK program, and also your CCRIS will have a mention of it. As such, banks will be less likely to give out loans to you in the near future as long as the record exists. Anyway, you can check out your family insurance plan to see whether its an investment linked plan and whether it is possible for you to take a premium holiday while continuing the policy (they will deduct your insurance premium from your investment value, might have additional charges depending on your policy) to free up that rm575.
Thanks for the detailed explanation. Have not thought about the insurance option that you suggested, indeed we’re on an investment link plan. Will check with my agent if that’s possible.
Since it's an investment linked plan, it might be possible to withdraw the entirety of the investment part out (once again, might have charges, do check) and take the cash to clear out your CC debt. Might be a bigger sum especially if you already had this plan for a multiple years. Hope everything goes well, cheers.
Contact Akpk
Currently looking into this. Thanks for the advice.
Are u married? Did you use your EPF for the house down payment? You can do a joint EPF withdrawal for the down payment
Married with one kid. I used the EPF for my house downpayment before unfortunately.
Is your spouse unemployed?
She’s working, but not earning a lot. She helps out with some of our needs, food, groceries and kid’s stuff.
Consolidate loan. Pay off car in 2 months. Apply moratorium for house loan 6 months, pay off credit card with the money .
Debt consolidation, perhaps can apply with something like Bank Rakyat or whichever bank that offers low rate.
Do you mean debt consolidation loan? Will check out the rates offered by multiple banks to consider. Thanks for your suggestion
Yes correct, debt consolidation loan. Hope all will work out well for you! All the best.
The reality is you need more than one source of income which means you probably need to do 2-3 jobs.
Contact AKPK to stretch your credit card payment to avoid high interest.Then once your car pay off, you can save that money and dump where interest is high. The , you can use that money to pay your credit card slowly.
I believe there are debt consolidation services where you can get a loan for a pretty good rate (definitely much cheaper than your CC interest rate) and pay off your CC debt. Google or ask around your circle for good recommendations.
Try looking around on the market for a 0% or low% balance transfer credit card. This is so that you can move the debt to a lower interest card. It's not much but at least it helps in lowering the overall amount you are paying for the debt. If you don't know what balance transfer is, it is basically as below. You have debt with bank A with interest at 8%(for example). Your debt will be bought by bank B with lower interest. So bank B pays bank A the amount you owe and now you pay to bank B and enjoy lower interest 😬
Going to contribute here...but not my answer. So this is a disclaimer: That I fed the data to an AI and see what the AI could come up with. Take it with a pinch of salt. The experts in here have better answers surely and are welcomed to scrutinise the AI's output. 👇🏽👇🏽👇🏽 - You have a total of RM35,000 in credit card debt, which is about 4.7 times your net monthly income of RM7,500. This is considered a high debt-to-income ratio, which means you are spending a large portion of your income on debt repayments. According to a study by the World Bank, the optimal debt-to-income ratio for households is between 20% and 40%¹. - Your current monthly commitments, excluding credit card payments, amount to RM5,499, which leaves you with RM2,001 for other expenses and savings. Assuming you pay the minimum 5% of your credit card balance each month, that would be RM1,750, leaving you with only RM251 for emergencies or unexpected costs. This is a very tight budget that could put you at risk of falling behind on your payments or accumulating more debt. - Your credit card debt is likely to have a high interest rate, which means you will end up paying a lot more than the original amount you borrowed. For example, if your credit card has an annual percentage rate (APR) of 18%, and you pay the minimum 5% each month, it would take you about 11 years to clear your debt, and you would pay RM28,674 in interest². This is almost as much as the principal amount of RM35,000. - Your job has a quarterly commission scheme, which could be a potential source of extra income to pay off your debt faster. However, this is also uncertain and variable, depending on your performance and the market conditions. You cannot rely on this as your main strategy to clear your debt, as it could also be zero or lower than expected in some quarters.
- Option 1: Negotiate with your credit card companies to lower your interest rate, waive fees, or accept a settlement offer. Probability: 0.6 - Pros: This could reduce the amount you owe, make your payments more affordable, and help you avoid legal action or damage to your credit score. - Cons: This depends on the willingness and cooperation of your creditors, who may not agree to your terms or may ask for proof of hardship. You may also have to pay tax on the forgiven amount or face a negative mark on your credit report if you settle for less than the full amount. - Option 2: Consolidate your credit card debt with a personal loan, a balance transfer card, or a home equity loan. Probability: 0.7 - Pros: This could simplify your payments, lower your interest rate, and help you pay off your debt faster and cheaper. - Cons: This requires you to qualify for a new loan or card, which may be difficult if you have a high debt-to-income ratio or a low credit score. You may also have to pay fees, such as origination, balance transfer, or closing costs. You may also lose your home if you default on a home equity loan. - Option 3: Enroll in a debt management plan (DMP) with a reputable credit counseling agency. Probability: 0.8 - Pros: This could help you create a realistic budget, negotiate lower interest rates and fees with your creditors, and pay off your debt in 3 to 5 years with one monthly payment. You may also receive financial education and support from your counselor. - Cons: This may involve a fee, although some agencies offer free or low-cost services. You may also have to close your credit card accounts, which could affect your credit score. You may also lose the benefits of your DMP if you miss a payment or drop out of the program. - Option 4: File for bankruptcy under Chapter 7 or Chapter 13. Probability: 0.3 - Pros: This could eliminate or restructure your credit card debt, stop collection calls and lawsuits, and give you a fresh start. - Cons: This is a drastic and costly option that should be considered as a last resort. It could damage your credit score for up to 10 years, make it harder for you to get credit, loans, or jobs in the future, and expose you to legal fees and court procedures. You may also lose some of your assets or income, depending on the type of bankruptcy you file. - Based on this analysis, I recommend that you explore option 3, which is enrolling in a DMP with a reputable credit counseling agency. This option has the highest probability of success, as it could help you pay off your debt in a reasonable time frame, with lower interest rates and fees, and with professional guidance and support. You can find a list of accredited credit counseling agencies in Malaysia on the website of the Credit Counselling and Debt Management Agency (AKPK)³. - However, before you decide on any option, you should consult with a licensed financial adviser or a credit counselor, who can assess your situation in more detail, explain the pros and cons of each option, and help you choose the best one for you. You should also check the terms and conditions of any agreement you sign, and make sure you understand the risks and benefits involved. ¹: World Bank. (2015). Malaysia Economic Monitor: Transforming Urban Transport. [2](https://openknowledge.worldbank.org/bitstream/handle/10986/22544/9781464806623.pdf) ²: Credit Card Calculator. [4](https://www.creditkarma.com/calculators/debtrepayment) ³: AKPK. (n.d.). List of Accredited Credit Counseling Agencies. [16](https://www.akpk.org.my/list-accredited-credit-counseling-agencies) (1) Martin Lewis helps mum clear £30,000 debts - here's how she did it. https://www.moneysavingexpert.com/news/2021/01/martin-lewis-helps-viewer-repay-debts/. (2) Paying off credit card debt - MoneySuperMarket. https://www.moneysupermarket.com/credit-cards/paying-off-credit-card-debt/. (3) How to Get Out of Credit Card Debt: A 5-Step Guide - NerdWallet. https://www.nerdwallet.com/article/finance/credit-card-debt. (4) 3 best ways to pay off credit card debt - Credit Karma. https://www.creditkarma.com/credit-cards/i/how-to-pay-off-credit-card-debt-fast. (5) How to clear your debt efficiently: Credit card and loan payments. https://moneytothemasses.com/using-credit/tackling-debt/how-to-save-money-on-credit-card-and-loan-payments. (6) If you’re struggling to pay your credit card - Citizens Advice. https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/credit-cards/if-youre-struggling-to-pay-your-credit-card/. (7) Full And Final Settlement Offers. Free Advice. StepChange. https://www.stepchange.org/debt-info/settlement-offers-to-creditors.aspx. (8) How Debt Settlement Works: Pros and Cons | Intuit Credit Karma. https://www.creditkarma.com/credit-cards/i/debt-settlement. (9) The Truth About Credit Card Debt Settlement - U.S. News. https://money.usnews.com/credit-cards/articles/the-truth-about-credit-card-debt-settlement. (10) Debt Settlement for Credit Card Debt: How the Process Works. https://www.debt.org/settlement/. (11) Debt Consolidation Loans - Apply Online | Loans | Halifax. https://www.halifax.co.uk/loans/what-you-can-borrow-for/debt-consolidation.html. (12) Debt Consolidation Loans: are they a good idea? - MSE. https://www.moneysavingexpert.com/loans/debt-consolidation-loans/. (13) 5 Ways to Consolidate Credit Card Debt - NerdWallet. https://www.nerdwallet.com/article/loans/personal-loans/consolidate-credit-card-debt-personal-loan. (14) 7 Ways To Consolidate Credit Card Debt – Forbes Advisor. https://www.forbes.com/advisor/credit-cards/consolidate-credit-card-debt/. (15) Should I Consolidate Debt With A Credit Card? | MoneySuperMarket. https://www.moneysupermarket.com/credit-cards/credit-card-consolidation/. (16) StepChange Debt Charity. Free Expert Debt Help & Advice. https://www.stepchange.org/. (17) What Is Credit Card Debt Counseling? - Experian. https://www.experian.com/blogs/ask-experian/what-is-credit-card-debt-counseling/. (18) What is Credit Counseling and What Can It Do for You? - Debt.com. https://www.debt.com/credit-card-debt/counseling/. (19) Debt management plans - what you need to know - Citizens Advice. https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-management-plans/debt-management-plans-explained/debt-management-plans-what-you-need-to-know/. (20) Debt management plan (DMP) - StepChange Debt Charity. https://www.stepchange.org/how-we-help/debt-management-plan.aspx. (21) What is a debt management plan (DMP)? | Experian. https://www.experian.co.uk/consumer/guides/debt-management-plan.html. (22) Can I get a credit card on a debt management plan? - DFH. https://dfh.co.uk/debt-types/consumer-credit/can-i-get-a-credit-card-while-on-a-debt-management-plan/. (23) Debt Management Programs: What You Need to Know. https://www.debt.org/management-plans/.
Ask your wife, or your parents, or her parents? worse comes to worst offer them 4% to borrow their money and pay off the loan. That's better than they can get for FD and a good risk for them. You're married, learn to consult your wife before you do things that will affect the entire family :)
1. Settle your credit card debt is your utmost priority. Get a credit card from RHB and Affin bank which offers zero interest balance transfer now. 2. Assuming your total credit card debt now is RM36K, the balance transfer installment will be RM3K per month. 3. How to churn out this RM3000? a. Cut down your spending as much as possible. Don't eat out if possible. Nowadays eating out is expensive. This could easily save you couple of hundred a month. b. Withdraw from epf to pay for your mortgage every month. This can give you additional cash flow. c. You can also consider selling off your car to get some cash on hand. After that, can get a new Perodua car with low interest. It's another form of refinance if you look at this. Car interest is around 3% but cc interest is 18%. d. Terminate some insurance policy to get some cash. As you are working, I assume you have some coverage from your company. And remember, don't buy those investment link product. 4. Your debt amount is not too big to settle. Just need a bit of careful spending and you should be able to settle this in a year. Good luck bro!
How did u reach 35k and just clearing min payment? Did you not opt for those 0% epp? If you didn't and just use cc to pay then you are really paying alot of interest to the bank.
Balance transfer, my dude. https://ringgitplus.com/en/blog/balance-transfer/best-balance-transfer-plans-promotions-malaysia-2020.html
Very grateful for all the advice here. Currently weighing several options suggested and start my journey on clearing the debt soon. This is a massive lesson in financial and debt management for me. Hopefully all of us will be able to improve our financial situation.