Consolidation - The Way to Go...

Keeping your discipline when shopping is never easy. A friend of mine just don’t have enough of it. I got a phone call early yesterday morning from J. She sounded frantic and she was talking in circles. Once I calmed her down she told me that her finances are in chaos and her debtors are out to get her. It seemed my dear friend has multiple credit cards and had gone on a shopping spree last Christmas and now she can’t afford to even pay the monthly minimum.

Hmm.. time for some serious intervention. I advised her to get a personal loan immediately so that she can pay whatever amount is outstanding on all her cards to avoid any unnecessary interest. This way she now need to pay only one creditor and as personal loan carries a lower interest rate, she can save from that as well. I then advise her on the evil of credit cards! ( me older than her, so lots of experience in that department..lolz). I also told her to use caution the next time she uses any credit card and make sure she always pays the amount immediately. It’s just too bad that once you are declared a bankrupt here and has bad credit rating, no one will offer you any loan whatsoever unlike if you are in the States and are able to secure a loan even with bad credit. They even have a website that list down financial institutions that offers such individual bad credit loans!

Oh well.. I hope she heeds my advice and take this experience seriously before splurging again. You hear me J???

Cheerio…