Currently owe 50k++ in consumer debt

[jay1082]

33M - Single and the parents (not working no pensions) are staying with me.

I have maxed 5 credit cards (10500 limit each) and paying minimum of 525 on each card monthly. Total minimum paid is 2625/month. 3 of these cards are maxed out again each month to cover some of my living expenses below.

My net income is around 3.7k/month (new salary after 2024 adjustment)

Expenses:

1. Credit cards: 2625
2. Rent: 1200 (utilities and internet included / 1050 just house).
3. Groceries: 500.
4. Insurance: 300.
5. PTPTN: 170 (14k balance).
6. Petrol and toll: 200 (used car cash).
7. Personal: 150.
8. Post paid w device: 300 (18 months to go).

Balance = (1745) - this was higher before 2024 salary adjustment.

How do I get by if I have to spend more? Maxed the remaining cards and/or borrow people here pay people there, borrow people there pay people here.

No emergency fund
No investment except EPF

Massive gambling is the foundation of my 5 cards debts and I have nobody to blame but myself. My family does not know this and I managed to keep my financial situation hidden - well by maxing whatever left on the cards.

Has anyone been in this situation? I do not know what else to do because I am currently stuck in this cycle for almost 2 years.

 

[lucy23]

@jay1082 Go seek AKPK to restructure your CC payment to a lower monthly commitment. But prepare to lose all your CC after that.

 

[vivienne]

@lucy23 Also get help with your gambling addiction. You do not want to fall into gambling again after restructuring. Suddenly realising you have extra funds and then gatal2 wanna gamble

 

[conexa]

@lucy23 do this immediately. cuts the interest from 18% to around 5%

 

[headbanger]

@lucy23 Agreed on this course of action. Restructuring the debts from CC with high interest to a single lump sum at a lower interest.

 

[ewaldron1988]

@jay1082 Honest question how did u get 5 card with 10k limit with ur current salary. U better call ur bank for restructuring, paying the minimum payment won't even put a dent toward the intrest charge, assuming u keep this up within a few months u will see ur 50k debt turn into 100k.

 

[rad]

@ewaldron1988 I’m so curious as well, I kept getting rejected for credit cards when my salary was 3k basic and 2k monthly allowances. I only managed to get one when my salary is 6k basic.

 

[ewaldron1988]

@rad I got one at 3. 5k however the limit was 4k. OP salary is 5k and he got 5card for 10k, it's as if the banks don't even do background checks

 

[rad]

@ewaldron1988 Damn, my card’s limit was 2k when my salary was 6k.

 

[bipn_406]

@rad Must be CIMB.

 

[rad]

@bipn_406 Hah, you’re right!

 

[neobondjames]

@ewaldron1988 Curious as well.

 

[podlife]

@neobondjames There are very few limitations on CC personal debt risk in msia.

Banks know the failure rate, and set the interests accordingly.

The good payers, as in any banks, pay for the bad, risk wise.

The bad payers, getting squeezed into slow death spiral, provide liquidity they'll never get back.

The only risk is a sudden systemic change that radically increases the failure rate with no warning but if that happens, the bank probably has bigger fish to fry from its investment, B2B, and mortgate section.

In the meantime, the more cards out there, the more revolving credit lines fructifying the capital.

 

[neobondjames]

@podlife Which banks are these exactly? From the few posts I have seen, credit cards are hard to acquire even with 4-5k.

Incidentally, I am interested in a secured cash credit card to build some credit. Do you happen to know of any with about 3-5k deposit?

 

[thefirstoftheseconds]

@neobondjames 3k above salary can already apply for most credit card. Try checking out ringgitplus.

 

[vivienne]

@ewaldron1988 I got 2 cards with my 3k salary. CIMB and Maybank

 

[resjudicata]

@jay1082 At your salary with 50k credit card debt, it's not possible to get out of it even after you retire. You need to get AKPK and never ever use credit card anymore. You're not responsible enough at 30 years old to even own a credit card...

 

[debbieelaine]

@jay1082 You have to make a very huge decision.

1. Cut all night and social activities.
2. Cut all subscription plans.
3. You cannot afford luxuries now. So cut everything.

Your hole is deep but not deep enough to get out from.

50 debt to be repaid is 3 years min. All I can say is start to pay off only the essentials.

If rent is too high, move. Too bad, but you must make a decision.

If cannot afford car, sell it and get a bike. Tough decisions but so be it.

Stop shopee, tng, grab, and anything else that will eat up in small increments.

 

[truthseeker05]

@debbieelaine "Your hole is deep but not deep enough to get out from."

Sorry its unrelated but i dont get this TT

 

[mamac1]

@truthseeker05 He’s saying that OP’s troubles are very challenging to overcome, but it’s not impossible