After years been through all the rough in my life, I finally managed settle half of my credit card debt. Perhaps I would like to share a litle bit of how I negotiate with the collector in reducing my interest fees.
By the way, I own 6 banks in Malaysia. This is due to credit cards bill which has gone up high with outstanding payment.
In 2006, I have quitted my work as travel consultant in one of travel agent in Kuala lumpur. Why? uncertainty in paying monthly salary. No Epf contribution. (lie in telling me they had)
I finally learn to run my own travel business but due to insufficient fund, and slow business I urge myself to find a job. 2006-2007 is year of another recessions in Malaysia. I struggle to pay those babies that includes cars, room rent and food for myself. I foresee that is not easy for me to feed them all therefore, I let go one after another.
1. I write an official letter of
termination of my credit card account for all of them and distribute it to them. This to help me avoid spending more using card when I have no job.
To my surprise, is not easy for me to find a proper job at the moment. Perhaps all the company is not hiring or I am just having a bad luck, i donno.
I started having high level of stress when those bank collector chasing me day and night asking for money. The court summon arrived one after another but yet I just ignored. Why? well I cant do much about it can i? I am poor!
I finally got a contract job in Oil and gas industry. Quite interesting pay and the salary goes to maybank via svg - giro. My first salary got frozen and I can withdraw at all. Why? becuase I have not yet pay them.
2.
Negotiation to settle the outstanding balance. This way, you would be able to enjoy your daily lifesytle back to normal. Let me see, 3 years I have no job and never paid any single cent to those bank and my name has already in CTOS and CRISS and in Bank Negara Malaysia for being irresponsible debtor.
3.
Installment payment is one of the method of settling the debt. Well, through my experiences, not all the banks having similar approach of getting the debtor to pay. They enforce their hired agent to distrurb your life. I could just have a heart attack when arguing with those collector agent, trust me their heart are cold as stone.
4. Full settlement after a year of payment where I have to sacrifice my bonuses to pay them off. Well not all of them being settle but that how I did settle 3 of the banks in 1 year time and get my release letter from them telling me off from their list. hahah but yet I have another 3 more banks to go. I target maybe early next year? Insya Allah...
Well, but remember once you agreed with the negotiation, you cannot breach your contract, or else...
In your negotiation you try to get as much discount as possible. Some bank will agree to even allow you to pay only your principle amount with little less interest fee rather that you have to pay 18% a year.
And now I am spending within my budget but still using a debit card. hahah
Hope that would help.
damn! merely get into the paradise but realised it was only a dream.