docjames
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AMEX going broke ???
- Thread starter Rick93
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medhead
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Ok GORDO, my misunderstanding, sorry. You weren't that clear (to my reading
) when talking about no one letting you combine CC into your mortgage. I assumed (wrongly) that you asked about doing the refinance for the reason of combining CC debt. hence I thought I suggest using a different reason that might be more acceptable but then "changing your mind" and using the money for the other reason to pay the CC. I'm truly sorry for not understanding you properly.Of course, like the lotto, I still think anything is worth a try and personally I would still approach one of the big four banks.
Anyway, I'm sure you have some strategies for sorting it out as best possible. So I won't tell you how to suck eggs (again
) Sorry again for not following properly.Thanks also for you experience, because now I will definitely make sure I cancel my couple of BT option once the cheap interest period is over.
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Dave Noble
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Before posting, I did do further research to verify that that is the amount of ongoing balance on which interest charges are being accrued; there are other articles which do indicate that that is the interest bearing amount of debt
Dave
medhead
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Well then that adds to my constantly amazement at the number of people carrying over CC debt.
Maybe, I'm just as bad, as I use a line of credit type mortgage account to smooth out my cash flow (i.e. pay the CC even month). But at least I'm paying less than 10% interest.
Maybe, I'm just as bad, as I use a line of credit type mortgage account to smooth out my cash flow (i.e. pay the CC even month). But at least I'm paying less than 10% interest.
Soundguy
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As the saying goes Lotteries are a tax on people that failed maths!
I have been listening to these series of no-holds-barred messages on personal finances, found them very helpful.
I have been listening to these series of no-holds-barred messages on personal finances, found them very helpful.
Yeah, I could see myself sharing $30 million with nine others, even ninety others.... but anyway....
RE: ' The Big Four '...
I recently had a 'chat' to Westpac. Oh, yes, they were going to 'consolidate' my CCs for me, over to a personal loan..... at 16.75 % pa. but only for a max. of $25,000.
That wasn't going to really help.
What I did do, was drop my Platinum card back to an ordinary card, at a lesser rate of 12 point something %, as an interim measure, while I look at other options.
When I say " unstable " employment, that's AMEX's terminology. I have worked as a registered nurse in the NSW Public Hospital system for 17 years. However, most of that time, I moved from one hospital to the next, as I changed rental properties ( before the mortgage ). I also moved from full time to casual, and back again several times, as circumstances change.
Bankers just don't seem to live in 'the real world'.... they just didn't get it !!
I remember telling one guy over the phone, that for the last five years straight, I've earned over $100,000. pa. Here's my accountant's number...
" Sorry, you are a 'casual'..... we can't offer you anything as a casual ".
I've been told so many times, by almost all financial inst.s, that unless I work for the one employer for at least 12 months continuously, I will not be considered for any credit... even if I already have an account in good standing.
I even spoke with a so called 'debt consolidator', who still couldn't offer anything, because we didn't own enough of the house, and, would you believe..... because we have four kids !!!
So, I need to go and find one of my little white tablets now.....
thanks,
GORDO
RE: ' The Big Four '...
I recently had a 'chat' to Westpac. Oh, yes, they were going to 'consolidate' my CCs for me, over to a personal loan..... at 16.75 % pa. but only for a max. of $25,000.
That wasn't going to really help.
What I did do, was drop my Platinum card back to an ordinary card, at a lesser rate of 12 point something %, as an interim measure, while I look at other options.
When I say " unstable " employment, that's AMEX's terminology. I have worked as a registered nurse in the NSW Public Hospital system for 17 years. However, most of that time, I moved from one hospital to the next, as I changed rental properties ( before the mortgage ). I also moved from full time to casual, and back again several times, as circumstances change.
Bankers just don't seem to live in 'the real world'.... they just didn't get it !!
I remember telling one guy over the phone, that for the last five years straight, I've earned over $100,000. pa. Here's my accountant's number...
" Sorry, you are a 'casual'..... we can't offer you anything as a casual ".
I've been told so many times, by almost all financial inst.s, that unless I work for the one employer for at least 12 months continuously, I will not be considered for any credit... even if I already have an account in good standing.
I even spoke with a so called 'debt consolidator', who still couldn't offer anything, because we didn't own enough of the house, and, would you believe..... because we have four kids !!!
So, I need to go and find one of my little white tablets now.....
thanks,
GORDO
Gordon,
I can understand some of your situation about there definition of stable employment, i was in a similar situation as a contractor some years ago, they didn't to talk.
As for the banks and morgages, well i opted for a low doc loan with 30% paid in to get my loan, otherwise it would have been too difficult. All ok now though, i earn a lot less but have a 'stable' job. Still thats a lifestyle choice for me, no other reason.
E
I can understand some of your situation about there definition of stable employment, i was in a similar situation as a contractor some years ago, they didn't to talk.
As for the banks and morgages, well i opted for a low doc loan with 30% paid in to get my loan, otherwise it would have been too difficult. All ok now though, i earn a lot less but have a 'stable' job. Still thats a lifestyle choice for me, no other reason.
E
Diesellife
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Hi Gordon,
I recognized you through the other post (The one from : Any Advice?......), I hope you have since then found a financial planner for yourself as your current situation is rather critical.
Even tho I've done financial planning before, I'm by no mean in here to give you any advise in any ways but to give you a clear snap shot of your current finance.
For your privacy, I will not post any figures in here and will only illustrate in percentage. You are more than welcome to PM me should you need the figures.
Here is the snap shot:
Your current debt level is way over responsible lending. I don't know how you got all those credit cards with that maximum amount. Your current credit card monthly repayment alone is around 54.5% of your cleared income. On top of that you have another 35% of your total income for other loans including mortgage. That leaves you only a little over 10% of your income to support the whole household of 6.
Under my analysis, it only seems that you are surviving off the balance transfer which the interest represents 30% of your income. Without it, you are more likely to incur a series of cash flow problems and have a monthly deficit.
Here is my opinion:
More credit and refinance is out of the question at the moment as no one will accept that kind of risk on the paper. As other suggested, a financial planner may be able to advise you on different options (Mainly bankruptcy to be honest). And hopefully you can get it all organised before too late and disrupted the life of your children.
I recognized you through the other post (The one from : Any Advice?......), I hope you have since then found a financial planner for yourself as your current situation is rather critical.
Even tho I've done financial planning before, I'm by no mean in here to give you any advise in any ways but to give you a clear snap shot of your current finance.
For your privacy, I will not post any figures in here and will only illustrate in percentage. You are more than welcome to PM me should you need the figures.
Here is the snap shot:
Your current debt level is way over responsible lending. I don't know how you got all those credit cards with that maximum amount. Your current credit card monthly repayment alone is around 54.5% of your cleared income. On top of that you have another 35% of your total income for other loans including mortgage. That leaves you only a little over 10% of your income to support the whole household of 6.
Under my analysis, it only seems that you are surviving off the balance transfer which the interest represents 30% of your income. Without it, you are more likely to incur a series of cash flow problems and have a monthly deficit.
Here is my opinion:
More credit and refinance is out of the question at the moment as no one will accept that kind of risk on the paper. As other suggested, a financial planner may be able to advise you on different options (Mainly bankruptcy to be honest). And hopefully you can get it all organised before too late and disrupted the life of your children.
AMEX has a stock exchange code AXP in the US with a market value of $US24 billion so they have done well over the years getting 20 per cent interest rates from Australians who dont pay their card off in full each month.
It has been a very tough year for them but they are ok so far.
It has been a very tough year for them but they are ok so far.
JohnK
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I don't have proof but the $42+billion credit card debt in Australia would suggest that people paying off their credit card in full each month are very much in the minority....
When I was reviewing to help a person in credit trouble I noticed an American Express November statement.It read:
Interest 125
Over Limit Fee 30
No Repayment 30
Now the interest rate was 20.49% so the real all inclusive rate is actually more like 30%.
Now many folks caught like this could try to negotiate a settlement but American Express is rated as very hard to settle with.
Has anyone got experience in settling a hard core debt for less than the full amount with these guys without filing bankruptcy and how was it done?
Interest 125
Over Limit Fee 30
No Repayment 30
Now the interest rate was 20.49% so the real all inclusive rate is actually more like 30%.
Now many folks caught like this could try to negotiate a settlement but American Express is rated as very hard to settle with.
Has anyone got experience in settling a hard core debt for less than the full amount with these guys without filing bankruptcy and how was it done?
V
vet
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Try consumer credit advocacy services known in different States as variations on ' consumer credit legal service'.
Our service has a few brokers serving time, and pointing the finger at lenders. We set aside debt with Paul Hayes QC by grabbing the manager known as Mr .05: 1/2% secret commission to fudge applications at his bank. The bank wrote off $15m.
PS Derryn Hinch and Paul Clitheroe were on 3AW this week on this problem and, frankly, unlike some in Oz, Obama & Clinton in Reno in Jan 2008 recognised the 'grocery bill debt' was tipping struggle street into mortgage defaults. Kevin and Jonnie's people need to 'look into' it.
Our service has a few brokers serving time, and pointing the finger at lenders. We set aside debt with Paul Hayes QC by grabbing the manager known as Mr .05: 1/2% secret commission to fudge applications at his bank. The bank wrote off $15m.
PS Derryn Hinch and Paul Clitheroe were on 3AW this week on this problem and, frankly, unlike some in Oz, Obama & Clinton in Reno in Jan 2008 recognised the 'grocery bill debt' was tipping struggle street into mortgage defaults. Kevin and Jonnie's people need to 'look into' it.
oz_mark
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Household debt hasn't quite grown to the dizzying heights in Australia as it did in the US. Having said that, there are definitely some that have been lent more than should have been the case if responsible lending practices had been followed. Although on the CC front, I guess they can protect themselves to some extent as they always ask whether you can cope with the repayments required on a limit increase.
ethernet
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Like some local councils, it is possible AMEX invested in junk instruments and got burnt locally.
Getting off the Hook - (an example of a difficult client)
American Express is rated as very hard to settle with.
They all are - but if you have nothing, no house, no assets, or a NINJA
No Income, No Job or Assets then they must be pragmatic.
Once they really know you, they will be begging to settle. If you planned you affairs properly - with nothing in your name, they must wear it.
Tell em the truth - that you went wild, spent it on airfares, hotels, casinos and surefire fuel tablet investments, whatnot, and liver needs a few years to recover.
First off, set up a payment plan - $2.50 a week (50 cents better) if you are on the dole is plenty - all creditors want to cut their throats when this happens - as it crystallizes to toxic. Here you hint that there is absolutely no future or miracles on the horizon, and the tax office, CSA etc - they are lucky to get anything. Now support this by having a do gooder group confirm you are in dire straights - they must accept 50 cent weekly payments - unless they want to write it off then and there.
They love arrangements, as bankruptcy COST's them money - they don't want that - unless you have been angered them real bad.
A creditor meeting and deed of arrangement is all it takes.
They settle quicker when you hint motherinlaw may give them a preferential head start over other creditors. And if child support payments have to be figured in, cause if CSA finds out...and HEC's - not a chance in the next 5 years - then they will be eager to bury and settle.
I suggest you list assets with wild valuations - $200 car as $4000, Phantom comic book collection , empty Campaign bottle collection, Babcock and Allco script - and they may 10 cents in the dollar, but somehow 2 cents in the dollar when assets get sold (Plus 1K of preferential backhander).
Also, lodge last years tax return, if you have not, now, so you are in Rudd's moneyrama giveaway, assuming tax or csa dont try to claw it back,
Find someone sneaky for the creditor meeting - so the right impressions can be made, when it is held at 5.20 pm out in new suburbs that may not be in the map yet. If you can change your address to Thursday Island, Port Headland, Longbay, silverwater, Mount Druitt, or no-go zones in Redfern, so much the better. Many creditors are taken aback when report to Jail..visiting hours .. fingerprinted, and allow time for possible body cavity examination - shucks - they loose interest fast.
Depending on circumstances, 4 cents in the dollar is a fantasic outcome relative to AAA Moodys sub-prime.
Getting off the Hook - (an example of a difficult client)
American Express is rated as very hard to settle with.
They all are - but if you have nothing, no house, no assets, or a NINJA
No Income, No Job or Assets then they must be pragmatic.
Once they really know you, they will be begging to settle. If you planned you affairs properly - with nothing in your name, they must wear it.
Tell em the truth - that you went wild, spent it on airfares, hotels, casinos and surefire fuel tablet investments, whatnot, and liver needs a few years to recover.
First off, set up a payment plan - $2.50 a week (50 cents better) if you are on the dole is plenty - all creditors want to cut their throats when this happens - as it crystallizes to toxic. Here you hint that there is absolutely no future or miracles on the horizon, and the tax office, CSA etc - they are lucky to get anything. Now support this by having a do gooder group confirm you are in dire straights - they must accept 50 cent weekly payments - unless they want to write it off then and there.
They love arrangements, as bankruptcy COST's them money - they don't want that - unless you have been angered them real bad.
A creditor meeting and deed of arrangement is all it takes.
They settle quicker when you hint motherinlaw may give them a preferential head start over other creditors. And if child support payments have to be figured in, cause if CSA finds out...and HEC's - not a chance in the next 5 years - then they will be eager to bury and settle.
I suggest you list assets with wild valuations - $200 car as $4000, Phantom comic book collection , empty Campaign bottle collection, Babcock and Allco script - and they may 10 cents in the dollar, but somehow 2 cents in the dollar when assets get sold (Plus 1K of preferential backhander).
Also, lodge last years tax return, if you have not, now, so you are in Rudd's moneyrama giveaway, assuming tax or csa dont try to claw it back,
Find someone sneaky for the creditor meeting - so the right impressions can be made, when it is held at 5.20 pm out in new suburbs that may not be in the map yet. If you can change your address to Thursday Island, Port Headland, Longbay, silverwater, Mount Druitt, or no-go zones in Redfern, so much the better. Many creditors are taken aback when report to Jail..visiting hours .. fingerprinted, and allow time for possible body cavity examination - shucks - they loose interest fast.
Depending on circumstances, 4 cents in the dollar is a fantasic outcome relative to AAA Moodys sub-prime.
Dave Noble
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In USA today a few days ago they showed the statistics for US credit cards.
Households with revolving credit have an average of around USD10000; the repayment levels have dropped from paying 18% of balance in 2007 to 12% this year
Dave
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I really liked the jail address idea but my friend could only get there through being a truly incompetent observer of speed limit signs.Do they jail you for speeding fines?
Thanks for all the ideas on settling an Amex debt.I have been too much of an accountant to think outside my rectangular sheet of paper.
Look shortly if not now we will all get to see or know someone who is out of their depth with credit cards so getting a settlement to avoid this
person needing mental health checks is becoming urgent.
Thanks for all the ideas on settling an Amex debt.I have been too much of an accountant to think outside my rectangular sheet of paper.
Look shortly if not now we will all get to see or know someone who is out of their depth with credit cards so getting a settlement to avoid this
person needing mental health checks is becoming urgent.
baldman
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Ethernet was spot on and summed up all the major "pressure" points. This constitutes a pretty good game plan.
If you have a friend or any other third party (especially a legal friend), you can also consider making a "tendered conditional offer", where a third party writes to the lender enclosing a cheque for say 20c in the $ which is offered as full and final settlement and the credit providers' banking of the cheque indicates acceptance of the offer and its terms and conditions.
Used for this a friend some fifteeen years ago and it worked, though the bank still tried to come after my mate. He wrote (on my advice) to the banking ombudsman and the bank pulled their head in very quickly and he received a letter of apology from them.
I've helped a couple of people over the years who have been in difficult situations and imo, the key to retaining sanity, and perhaps some credit worthiness is to get on the front foot with the credit providers and negotiate with them.
Good Luck
If you have a friend or any other third party (especially a legal friend), you can also consider making a "tendered conditional offer", where a third party writes to the lender enclosing a cheque for say 20c in the $ which is offered as full and final settlement and the credit providers' banking of the cheque indicates acceptance of the offer and its terms and conditions.
Used for this a friend some fifteeen years ago and it worked, though the bank still tried to come after my mate. He wrote (on my advice) to the banking ombudsman and the bank pulled their head in very quickly and he received a letter of apology from them.
I've helped a couple of people over the years who have been in difficult situations and imo, the key to retaining sanity, and perhaps some credit worthiness is to get on the front foot with the credit providers and negotiate with them.
Good Luck
Flashback
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People who neglect to pay their fines can be jailed, yes.
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