All Topics / The Treasure Chest / How to Get Loan in SYD with bad Credit card DEBT??

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  • Profile photo of SachSach
    Member
    @sach
    Join Date: 2003
    Post Count: 91

    Hi all, been so busy I haven’t been able to get
    onto pi.com for a while. I have a serious ques
    and I hope you all maybe able to help me out.
    What is the possiblity of someone buying their
    1st ever house in the SYD area, if they have
    $55k-$60k in credit card and personal loan Debt?
    and don’t have much of a savings, and are in
    their late 40’s to Mid 50’s? Combined income is
    bout $105k before tax. Any lenders you could
    recommend who will help them out? if not able
    to get a home loan, any hints on how someone
    like Liberty financial or similar company may help
    to reduce the Debt by taking it on and the couple
    paying to Liberty or equivilant? Really appreciate
    it. I’m only 22 so it not for me. I really want
    to help them as they are close family members.

    Profile photo of HomeLoanGuyHomeLoanGuy
    Member
    @homeloanguy
    Join Date: 2003
    Post Count: 26

    Hi,

    This is not going to be an easy one, but will involve some confidential discussion. Contact me on email [email protected].

    Cheers!!!

    Gary Young
    Home Loan Connexion
    Mobile 0407 64 66 32
    Fax +61 7 4636 4841
    email [email protected]

    Profile photo of SachSach
    Member
    @sach
    Join Date: 2003
    Post Count: 91

    HLGuy, thanks for the reply. Yeah i myself had a
    feeling this one would be a tougie but not that
    impossible to pull it off for the better.

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    Hi Sach,

    What about buying under wrap? this way they can buy their first house and another person can also get benefited I think looking at their income they can afford payment but CC and PL is a problem.

    Cheers
    Amit

    Profile photo of ajwansajwans
    Participant
    @ajwans
    Join Date: 2002
    Post Count: 45

    Sorry to be a negative nancy but some tough love
    is called for here…Before your friends go into
    any more debt (even good debt) they need to
    reevaluate their attitudes towards money and saving.

    I realise that they are paying rent but yields
    in Sydney are so low that they will have to fork
    out significantly more to get into their own home.

    I feel a mortgagee in possession auction coming in
    the future…I won’t say they can’t do it, just
    that there are other steps which should be
    accomplished first.

    andy

    Profile photo of SachSach
    Member
    @sach
    Join Date: 2003
    Post Count: 91

    ajawns, “mortgagee in possession auction”? I am not
    sure what you mean. Thanks a tonne for the advice it is
    noted and will be passed on. yeah the debt has been
    accumulated over the last 7 to 8 years. You know,
    buying on credit and getting lazy with repayments,
    buying a car, going on O/S trip with a personal loan
    not own savings etc. I guess having a good pen and paper
    budget would have been a good idea for them in 1995 or
    so. There is a simply saying “Spend less than
    what you Earn & if you get Debt make sure it is
    a Good Debt that puts money in your pocket”

    Profile photo of MiniMogulMiniMogul
    Participant
    @minimogul
    Join Date: 2002
    Post Count: 1,414

    hi sach

    I think ajwans means by “I feel a mortgagee in possession auction coming in
    the future…”

    if your friends get into their own home they might default and then the lender will sell it to recoup their debt”….kinda pessimistic….

    i would recommend them read ‘money secrets of the rich’ by john Burley.

    As far as buying in Sydney goes, I did the numbers on buying the house we live in. Firstly not only would we need over 100K for the deposit. Secondly interest only would be $1200 per week, more if interest rates rise or a fixed rate, but renting the house is only $400 pw……

    that’s why I’m still renting here but buying elsewhere.

    http://www.vocalbureau.com

    Profile photo of SachSach
    Member
    @sach
    Join Date: 2003
    Post Count: 91

    Thanks, Mini. Yes I will pass on all this golden
    info to them. Now I got what he meant, due to their
    track record the house may go under (if missed payments).

    Profile photo of picja1picja1
    Member
    @picja1
    Join Date: 2003
    Post Count: 144

    Mx Borrowing with Liberty is $270000, this is assuming they are only a couple with no children and the $60k monthly repayments are only 3%. Still need deposit, generally 10%.

    Best to get the debts down

    Profile photo of SachSach
    Member
    @sach
    Join Date: 2003
    Post Count: 91

    Great to see that there are so many alternative ways
    to curb and banish it. I guess you gotta know the right
    people who are willing to help you out. Thanks a heaps.

    Profile photo of SachSach
    Member
    @sach
    Join Date: 2003
    Post Count: 91

    Has anyone out there dealt with a specific debt
    consolidation agency (for credit card debt only)
    that is just being paid off as a minimum payment
    as shown on the monthly statement. Appreciate the
    feedback.

    Profile photo of crashycrashy
    Participant
    @crashy
    Join Date: 2003
    Post Count: 736

    My question is:

    If these people are in their late 40’s, earning $105k, why is it they dont own a home, and have such high debt? Seems they cant get by as it is, adding more debt to the mix will only make it worse.
    Banks wont touch them because they are high risk, and rightly so. The best way to help these people is to deny them any more debt. If they can stop spending money like they are and start paying off debt, then they deserve help. Everyone pays rent in one form or another. Its NOT dead money. They are not going to miss out on any capital gains, thats for sure, in fact NOT buying a house might well save them 100k.

    The best way to help these people is to give them a good slap around the ears. Tell em to read a book or 2 on BUDGETING.

    Profile photo of olorinsledgeolorinsledge
    Member
    @olorinsledge
    Join Date: 2003
    Post Count: 50

    Crashy is harsh, but he speaks the truth. [;)]

    Profile photo of SachSach
    Member
    @sach
    Join Date: 2003
    Post Count: 91

    yeah Crashy, well made point there. At least now
    they have woken up after a couple of verbal wakeup
    calls from the people who are close to them.
    the reason the debt got so big is that, from what
    i understand and know. They always didnt have a
    combined salary of $105k but they did want to act
    and show as if they did, hence used credit cards
    and personal loans to buy things like cars, go
    on O/S and Interstate trips (not that many though)
    over the 7 to 8 years. Children were going to High
    school and uni. and the thing is one of their kids
    also has a HECS debt and Centrelink loan debt to
    payback – and unfortunatly the person didnt even
    finish the degree (was forced into degree by parents
    to show off to others I am assuming). Sad to see
    but I am sure they will recover if it is meant to be.

    Profile photo of picja1picja1
    Member
    @picja1
    Join Date: 2003
    Post Count: 144

    Be very careful of debt consolidation companies.
    What they will do is place the ppeople in a Part 9 Agreement which is a form of bankruptcy. A lot of the companies don’t inform the people of this, they just say it is not bankruptcy, but you get to pay say $100 wk with no interest.

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