Comments on: Case Study: Consolidating Personal Loan, Mortgage and Credit Card Debt

By: Ng

Ng — Tue, 08 May 2012 05:23:08 +0000

Hi, need advise to settle credit card debt. If let say CC debt is RM20k, adviseable to covert it to term loan or apply personal loan to settle it? I view opinion from difference source but both have it pros and cons also.

By: AskChong

AskChong — Fri, 10 Feb 2012 06:47:43 +0000

Beware of loan shark, even sometime it is look like the only solution.

By: AF

AF — Thu, 09 Feb 2012 01:24:56 +0000

Thanks KCLau,
But that’s the first thing I did before, been telling them that I do not have enough money to buy off the stock and need to finish the job here so that I can collect payment from customer and pay them.
Initially they agreed but now they(the supplier) said that they also in need of cash.. bla bla bla… which I think is their trick.
I even end up telling the supplier to come to Malaysia and see everything themselves to ensure I am genuine in everything. But as you know, it’s hard nowadays to gain personal trust in business dealing unless we deal for years.

By: KCLau

KCLau — Wed, 08 Feb 2012 22:58:20 +0000

Hi AF,
So sorry to hear that you are in a desperate position.
Maybe you can think of other way instead of having to get the extra money. Try negotiating with the manufacturer to see if they can give you some short term on the goods.
Wish you the best of luck.

By: AF

AF — Wed, 08 Feb 2012 17:36:29 +0000

Hi Chong,
Less than a month. Any advise? I got no more fund now but I need to pay off the manufacturer so that they can release the goods and I can finish off the job. Delay longer, my losses more.
Went to HSBC today but to no avail because our BNM change loan regulation this year. Whatever business loan, personal loan.. all no need to discuss because I do not have income tax now. Company new, 6 month old.
Hope someone can enlighten me.

By: John Kumar krishnan

John Kumar krishnan — Wed, 08 Feb 2012 14:56:14 +0000

Hi everyone,

If you need to pay off your credit cards faster and at a cheaper, I have the solution. Get to me…don’t wait till you get blacklisted or you dig in deep into your hard earned money in yr savings accounts.

By: AskChong

AskChong — Wed, 08 Feb 2012 12:58:37 +0000

Hi AF,

No way you can get the loan documentation done within one month or less. The process is lengthy.

How urgent is urgent?

By: AF

AF — Wed, 08 Feb 2012 12:30:47 +0000

anyone mind to advise on comment above? Urgently need to know how.
Thanks.

By: AF

AF — Fri, 03 Feb 2012 21:07:36 +0000

Hi KC,
I urgently need your advise here.
I’m doing my own business, sole proprietor. New company, 6 months old.
But my first 2 business deal, I already making loss. Now I need around 80k to turnover so that I can minimize my losses. My parent willing to refinance our house valued around 100k( house paid off few years ago). Problem now are, refinancing takes around 3-4 weeks and I can’t wait that long.
My option now is, can I change my company from sole proprietor to partnership and add my parent name into it? Then use the house as collateral to get some business loan or OD for the company(fyi, the house still my parent name)
Also, it take more than a month to transfer house ownership from my parent to my name.
Please advise me what can be done as I need to money urgently but only has a house as collateral which is under my parent name.My parent cannot take personal current account and use the house as collateral for OD as they do not have any job( no repayment ability) thus the bank not willing to give them any OD.
Hope to get your reply asap and let me know if i described the problem not clearly as it is quite complicated for me also to explain.
thanks.

By: Samk

Samk — Mon, 02 Jan 2012 15:19:16 +0000

Hi Mr Low, I need an advise, I own a house which value at 140k, I bought the house for 100k, I had serve the bank for 7 years tenure, my total settlement should be around 65k, I wanted to refinance the house for 140k, cos I badly need some cash to settle my credit card debts, mounted up to 30k and my name are blacklisted due to credit card pyt due… I just wanted to know is it possible to refinance the house? Since my name are blacklisted.

By: Jue Abdullah

Jue Abdullah — Mon, 25 Apr 2011 06:37:13 +0000

Hi KCLau,

My spouse and I took a joint government house loan for our house. Can we get refinance the house using commercial bank loan?

By: bagakshi

bagakshi — Thu, 10 Mar 2011 06:37:02 +0000

woow, so many experts commenting here…..
if one don know how finance & banking credit evaluation work. no matter how good suggestion is, if u don’t know what criteria banker is evaluating on u, u will always on try n Fail!! those with good criteria will get PASS by banker ! those already “sh*” in criteria will always get “sh*” back from ban….kkk. B…careful with ad….wise

By: AskChong

AskChong — Wed, 05 Jan 2011 11:21:37 +0000

@Eddie,

Not surprise that you are unable to get another credit card for balance transfer as well as personal loan.

Please check carefully why your ASB units are locked with the loan for 20 years, may be u hv overlook redemption clause. ASB loan RM17k, how much is the units worth? If different is significant, try to redeem the loan.

Personal loan on flat rate basis is second expensive (after loan shark or credit card) while mortgage always the cheapest (except loan from relative/parents)

Sorry to say that without insurance coverage, with debts, you are highly exposed to risk. Hope you may be some coverage once your debt consolidation is done.

Back to the solution, looks like you have no better option other than to refinance it, if look-in period is end of this year, it is really a waste to incur the RM10k+ penalty (penalty on balance or loan facility?)

Option:
Do you have a car free from loan?

By: Eddie

Eddie — Tue, 04 Jan 2011 14:23:24 +0000

Hi Chong,

1) Agreed. That’s why i’m looking at house loan as interest is cheaper. Hopefully, with the right investment from the additional cash, i may able to dump more to the housing loan thus reducing the loan amount.

2) Yes, I’m planning to take ZEC. Interest is slightly higher in long term.

3) Freehold. Need to recheck the lock-in period but i think it should be by end of this year.

4) Ok. will recheck.

5) Agreed. But i’ve tried balance transfer and still cannot pay the min. payment. Tried personal loan but got rejected.

6) Al-Rajhi has a personal loan rate at 7.5% flat. That translates to 15% effective rate. Still quite high isn’t it?

7) ASB units are locked until i’ve settled the ASB loan (20 years tenure). With the additional cash from refinancing, i plan to settle the ASB loan amount too.

No insurance policy. Stopped paying as i couldn’t commit to the monthly payment.

9) Don’t think banks wanna gimme a card now with 5 cards and RM50K outstanding balance.

Guess what i need is additional cash right now to settle my cards, ASB loan, save some for investment and business. That’s the main reason why i’m thinking of refinancing.

Please advice whether i’m still at the losing end after my rationale for refinancing and considering all other options available. Thanks!

By: Eddie

Eddie — Tue, 04 Jan 2011 13:59:42 +0000

Hi ronmahsih,

I’m not a govt servant, but i noe the loans are quite low. Tried an islamic bank before for personal loan but got rejected.

Yup, my ASB rate earlier was just an estimation.

By: AskChong

AskChong — Tue, 04 Jan 2011 03:08:02 +0000

My opinion:
1. Personal loan for government servant is never cheap (if compared to house loan)!
2. Cost of refinancing – have you include the legal fee+stamp duty? May cost you more…. even if you consider to take up an ZEC package, interest will be much higher in long term.
3. Property is freehold or leasehold? refinancing may take months…. how many month to the end of lock-in period?
4. Read carefully, lock in period end 5 years from date of first disbursement or full disbursement?
5. If you are in desperate condition for cash, refinancing may take months too.
6. Get a low amount of personal loan to meet the immediate needs (even at higher cost)
7. To consider to sell all ASB units to settle credit card
8. Any insurance policy with cash value? can get a policy loan at 7% p.a. only, no legal fee.
9. Can get NEW credit card for balance transfer @ 1% p.a. for 12 months? May ease your cash flow.

Many more options…. try to explore before refinance NOW.

By: ronmahsih

ronmahsih — Tue, 04 Jan 2011 02:52:49 +0000

Hi Eddie,
Are you a gov servant? Personal loan for gov servants are quite low now.
BSN just announced an even cheaper personal loan. Check the site.

Some banks have additional financing for home loans more than 6 months. I know Maybank does. You may check with your current bank.

FYI, ASB div is only 7.5%. The rest is bonus which is based on average monthly balance for the past 20 yrs.

By: Eddie

Eddie — Mon, 03 Jan 2011 13:34:11 +0000

Hi Chong,

Perhaps i can explore top=up loan, but i think its only for house reno, will check.

Yup, ASB dividends has been hovering around 8%-9% per annum for the last couple of years.

Thanks for your keen interest to assist me with my financial problems. What info do you require please?

By: Eddie

Eddie — Mon, 03 Jan 2011 13:27:27 +0000

Hi ronmansih,

Many thanks for your reply. The lock-in period should last till next year (5th year). The penalty is 3% of the outstanding loan amount (about RM334K). I’ve tried balance transfer before but i continue to default the min. payment as i’m running outta cash to survive (if i convert it to term loan, the int will be around 9-10% flat, which is still higher than my refinancing int). With RM50K credit card bills outstanding, i need some cash injections, hence the refinancing came to mind.

Hopefully, by settling my card bills and investing in stable financial products, i may able to make this move viable. I also plan to start off a business from the cash balance.

By: AskChong

AskChong — Mon, 03 Jan 2011 08:47:40 +0000

Hi Eddie,
Ronmahsih is right, go for balance transfer “if you can”. Staff loan 3.5% is very good, I assume you are staff to a bank, can you get top up loan instead of refinancing?

if you invest in unit trust, don’t count on the return (which may be up and down)
if you invest in ASB with almost guaranteed 8%p.a. why not (are you sure 8%??)

If you can give me all information, may do a simulation on cash flow.