I currently have the bank hounding me for payments on my credit card. This cc is $12,000. Maxed out. Its been to its limit for 4+ years and between then and now I have only been able to keep paying the interest.
I am unable to keep paying this. Just interest is $250/month, I will never get this card paid off as I cannot afford any more towards it.
I am not working, currently pregnant, and our household only just scrapes by now.
I have looked into bankruptcy, is this an option that is "good"? I mean its obviously not that great of an option but I feel I have no other way to get away from this. I cannot go onto the banks hardship any longer. I feel I'm stuck. I dont have anything to lose? Nothing in my name, not working, only renting.
Someone please send me advice.
Possibility of Bankruptcy?
Tuesday, 30 May 2017 - 15:33
Possibility of Bankruptcy?
Posted in:
Money
8 Replies
I would seek immediate advice from a broker at minimum. If you declare bankruptcy you pretty much black-list completely for 3 years, you're put on a national list (which may affect you in future), you can't travel overseas for some time, you may not even be free of the debts as such if you begin to work. Have a look at this site: https://www.afsa.gov.au/insolvency
I would use it as a VERY very VERY last option. Do you have a car? If it's worth more than I **think** $7500 or so they'll take it off of you and they can take other possessions in the meantime. I'd try and seek external help from family first if you can.
Speak to centrelink to see if you qualify for early access to your super.
Get advice from a financial counsellor. Going bankrupt is a big deal and you may still end up paying the debt.
If there is anyway to downsize your expenses I'd be looking at that first.
I wouldn't go bankrupt for $12000. Can you transfer to an interest free cars for 12 months. Then transfer again after that. (Be aware of full terms) .
Your situation is temporary. Youll be not pregnant and able to work within months - one year max if finances are that desperate, and once working, you can pay it off within a year. bankruptcy will affect you for much longer.
When you have your baby youll get increased ftb or payments, and that will help.
Look at personal loans for longer length but lower payments - you could just continue on your $100 a fortnight but without the stress and actually getting it paid.
Speak to the bank about your circumstance and what they can do.
Speak with your credit card's financial institution about a personal loan for the exact amount spaced to the maximum lending length. It will reduce the amount dramatically. I just received a demand for payment on a 40k loan and now we are financially stable to get back on track with the loan payments, they agreed to us paying an extra 150 per fn (we will pay more when we can) but they have removed it from the line for the collection agency so that we don't suffer financially by bankrupting ourselves. They would hopefully be more likely to refinance it as a personal loan and recoup their payments faster than to lose it through bankruptcy. Good luck!
Talk to the bank I have a $7500 credit card debt and because the account has been closed it's not gaining any interest on it so I'm able to just pay back what is owing on the card this was an option they gave me so i took it
Don't pay a cent from now on and and ignore phone calls. 5 years from the date bebt was lodged they will stop chasing you. Then it's off your credit reference.
Wow great advice..... some people!