My mum has 30k PAJAK GADAI debt. Ideas on how to solve it

[charley18]

Sooo i recently found out that my mum has pajak gadai debt amounting to 30k. She put the golds which she inherited from my grandmum and the ones she bought when she was younger. Each of these pajak are made over a period of time and each pajak has a 2% interest per month.

No Amount

1 1,350.00

2 1,400.00

3 2,500.00

4 2,600.00

5 3,000.00

7 380

8 650

9 380

10 800

11 1,000.00

12 1,200.00

13 300

14 1,650.00

15 1,000.00

16 1,600.00

17 1,000.00

18 1,000.00

19 1,800.00

20 450

21 2,000.00

22 5,000.00

Total 31,060.00 (excluding interest)

2% per month times 12 is 24% p.a for each gadai. That is alot of money. Why she put all this at pajak? Investment scam. stupid. ik.

So I intend to chip in RM 7,500 so the total amount can be reduced to RM 23,560 excluding interest.

Each month I can chip in Rm250, my sister RM 250, and my mum can chip in RM 500. So monthly we can pay RM 1,000.

My plan is to pay off all the gadai in one shot and avoid paying anymore interest. To do so, i need RM 23,560 in cash.

Should i

1) Take personal loan ie CIMB Cash Plus Personal Loan. But i feel like personal loan is a big no no with high interest rates also.

2) Apply for credit card cash advance and pay off the debt in 24 months. some CC has 0% interest provided you pay on time.

These ideas does seem stupid to me. So i hope you guys give me a better idea.

for context, I earn RM 3500 with zero commitments and live in my parents house. No plans to get married anytime soon.

Those golds are too valuable to let it go just like that. After we take those golds back, my sister and I will split it among us. we wont give any of those gold to my mum (she agreed to the terms).

Thanks in advance.

 

[nativepride]

@charley18 With the money you have, settle the smallest amounts first. Sell the gold, use the money to settle the smallest amount again. Then recalculate what is left. From the looks of it, you may have enough to clear everything or at least only have to topup the difference a little bit more only. The final gold amount you get, split it in half.

The faster you sort it out, the less interest to pay. Make sure sell at market value.

Dont take credit card or personal loan for this. Would be worse to end up in more debt than what is already there.

 

[cecila]

@nativepride Im sorry, i dont understand how this is an investment scam as described by OP. E.g. i pawn the gold to the pawn shop for a sum of money, then every month i hv to pay back 2% until the expiry date, which if i dont pay back what i owe then i lose the gold. Sounds like a loan with my gold as collateral. Where is the “investment” part?

 

[dsamfire21]

@cecila Pretty sure OP's mom pawned the gold then took the money to join some investment scam

 

[cecila]

@dsamfire21 That makes sense. Thanks

 

[charley18]

@dsamfire21 i believe this is the story. i havent dig deeper yet.

 

[chadmc]

@cecila Maybe pawn gold and use that money to buy & pawn and repeat, then wait for the gold to increase in value while every month only need small amount to hold the gold type of investment?

Similar to how compress loan work. But mak cik didnt calculate thoroughly, she had the experienced of gold kept increased in price instead?

 

[cecila]

@chadmc That’s a great angle. Thanks for sharing.

 

[nativepride]

@chadmc Makcik would have probably done better doing that with eth /s

 

[chebles]

@nativepride Flashback to LUNA-UST

 

[kate1989]

@nativepride Yeah this is a good idea. Then you'll know how much you actually have left after all the trade, and that's the amount to split.

 

[charley18]

@kate1989 alright!

 

[charley18]

@nativepride sounds like a plan. thanks!

 

[juniebug46]

@charley18 Might be unpopular opinion, but I would rather not have the gold than live in debt.

 

[mattmanticus]

@juniebug46 gold would be worth alot more than the 30k debt.

 

[new_2_this_b_kind]

@mattmanticus The amount OP listed is excluding the 2% interest (that has been accumulating

That, added with the interest from the loan/debt OP wanting to acquire

The gold themselves might not be worth that

 

[tims]

@new_2_this_b_kind Without having full information it is hard to judge.. my sister was in similar situation, with about 25k debt, but the gold was actually worth more than 50k!! of course her total debt didn't reflect the gold price because she have been making some payment, so there is the difference here.

How we solved it, we chipped in with close family members, redeemed the pawned stuff, and sister repaid the debt to us without interest over time. Gladly she is in much better place now financially

 

[charley18]

@tims this is why im dont why to let it go

 

[uniquenatural88]

@juniebug46 Let's be objective about the value of the gold? Also to be fair, maybe some of the gold has sentimental/keepsake?

OP can you share much gold (in weight) have been pawn? Might not know the actual weight, but we trying to ascertain whether it is even worth it.

 

[charley18]

@uniquenatural88 okay i will get this info and get back to you