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  1. #11

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    Quote Originally Posted by samsinclair View Post
    No, I dont know how
    Well what's the loan amount and interest rate? I can do the calculation. PM me if you don't want to post it

  2. #12

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    Yeah, but I don't have energy to fight. This debt sometimes set me into depression

  3. #13
    Join Date
    Oct 2013
    Posts
    1,617

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    Then get help! Or give up and declare bankruptcy. Let me tell you with certainty, the former is a much better option.

    If you've got the energy to post on the forums here, you've got the energy to write letters to the various people you need to.

    But if you've no intention of taking actionable suggestions on board, perhaps best not to ask for them.
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.

  4. #14

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    Sure, I will take actions based on suggestions am getting. I have seen my accountant who advised me to try bank I have mortgage with for consolidation again since I have some equity now. But am still exploring options. Thanks again

  5. #15
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,305

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    samsinclair, thank you for posting your story. All we normally hear about is someone who has bought like 10 properties in 2 years, is now a multi-millionaire and has left their job to become a mentor. Not mentioning any names
    But of course there will be many people (I have a good friend in this category) who have lost it all, or even worse, in debt. I hope you can sort this out asap. You need to be able to have peace in your life. This is the sort of thing that splits marriages up.

    I want to focus on this bit:

    Wanted to sell the rental house but no luck yet or at the price we were looking (looking to be able to pay off the debt and have deposit to buy another house to live in) but unfortunately the property price has jumped by more than 30% in Hamilton since Dec 2014. No bank was ready to listen as I tried to consolidate the loans into my mortgage or personal loan at a lower rate, not even the bankA that we have the rental property with; no mortgage broker thought there was any chance.
    Ok, so:

    1) You obviously have a lot of debt if no one will consolidate it into one mortgage.

    2) The sale price of the rental property has nothing to do with how much you need to buy another property. The price you can get is the market price, regardless of your financial position.

    3) Does the rent from the rental property fully pay the mortgage on it? Does it leave any money left over? Or are you having to put money in to pay the mortgage? If it is costing you money each week, then you need to sell it.

    4) This sale should pay off the mortgage and hopefully leave you will a little bit of cash to pay down the credit cards. Is this the case, or will you be even more in debt if you sell?

    5) If you can sell the rental property, then I'd try and consolidate the CC debt into one personal loan, and pay it down as quickly as possible.
    Squadly dinky do!

  6. #16

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    Davo36, thanks for the comment. To answer your questions

    I agree the sale price has nothing to do with my financial position, it depends mainly on market though some buyers can look for distressed buyers and they bargain hard. I have been managing to pay the mortgage though at the expense of my kiwisaver and feel good that we didn't sell it despite the fanancial situation because the rise in property price has increased our equity in the property as well.

    The rent from the property doesn't cover the mortgage
    So the property is on the market but not going to sell cheap as long as we can meet mortgage payment without going into more debt.

    I met with the bank last week and pleaded for refinancing the mortgage in order to have lower interest rate, the bank considered it but few minutes ago told me the 40% equity wlet me down. So they are looking at consolidating into personal loan with about 12% interest rate and I agreed they have tried. That's looks like the way forward and my forward. My plan now is to kill the debt as advised by Anthonycat in the first comment above. Really appreciate everyone's comments. I also find the comment by MonkeyBoy helpful as it made me to ask the bank why punishing me by taking away from me even the credit card with 8k limit, zero fees and balance transfer interest of 2%. They said because I didn't check with them when I saw the facility on my account. They said 99.9% of people will ask them. So they thought I spent the money that was mistakenly loaded into my account. I managed to convince them that I thought they knew what they were doing as they must have seen my income goes to paying bills and more than half to paying card debts. Moreso, I let them know I knew what the facility was. It is a credit facility. I checked their interest rate and knew it is a facility to repay, not a money into my account just like that. So they were convinced I thought it was a miracle and they became lenient with me.

  7. #17
    Join Date
    Aug 2013
    Posts
    1,509

    Default

    In general - When it comes to bank errors in your favor - say nothing.

    The only exception to this is money turning up in your account which is not intended for you. In that instance you should contact them.

    In your particular case I would strongly advise you to see a lawyer or at minimum do not sign or agree to the loan

    At 18% they are f***ing with you and you presently have the upper hand and should take advantage of it. Once you have agreed to their terms you have lost your negotiating advantage.

    Quote Originally Posted by samsinclair View Post
    The branch manager insisted no, that I must come and sign the personal loan within next 3 days as the only option they can offer.
    I suggest calling their bluff. They are putting pressure on because they are desperate to create a paper trail which they can later use to screw you in ways you are clearly naive to at present.

    Keep in mind you will have to move your banking elsewhere and pronto.
    Last edited by PTWhatAGreatForum; 02-02-2017 at 05:12 PM.

  8. #18

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    thanks MichaelNZ, the problem if have now is i dont have money to engage a lawyer to cover for my naivity which I admit

  9. #19
    Join Date
    Aug 2013
    Posts
    1,509

    Default

    I have had a 3rd read of your original post to try and get my head around it. Here is what I suggest. I am not a lawyer and nothing I say should be construed as legal advice. Having said that, you are paying me nothing and you are in the **** anyway so....

    1. Who is bank B? This has no effect on the advice - I am just interested for my own knowledge as to who is throwing around money at present... I have my suspicions who it is, lol. If you are willing to share and PM me the info, I will keep it private unless you wish otherwise.

    2. They have loaned you the money unsecured and you have spent it. To this extent you are in a better position. Do not move your mortgage to them. Do I need to explain why?

    3. You owe them the money but they have given you an ass offer. I'd say no to their 18% and tell them you want 5 years at 5.7% personal loan.

    4. You should probably move your banking or at least be ready to. Potentially, they could grab everything in there.

    5. In this situation I'd suggest you consider playing hard ball. Banks are well practiced at intimidation, but you don't have to take the 1st offer.

    6. You probably already know this - but I'd suggest you have a good think about how you got into this position. $10's of thousands of consumer debt is a pretty crap position.

  10. #20

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    thanks for your advice


 

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