credit counselling singapore
- Thread starter blur blue
- Start date
malibu
Member
Hi blur blue, this is not malibu but her husband replying to your concern on her behalf.
My name is Jameson.
With regards to your query, personally, both malibu and myself did not go for credit counselling but we did have our problems while applying for hdb loan.
Firstly, I was a divorcee prior to marrying malibu. I had a resale flat but never really lived in it cos my previous relationship took a turn and I was denied access to my flat with my foreign wife.
Secondly, when malibu and I got married, we applied for a BTO (due 2014) and I had some problem due to my previous flat, existing credit balance which I was trying to settle with banks (yes, banks. Multiple credit cards). Although I had settled the balance of my previous flat, my balances with the banks were a major concern. Luckily, apart from being classified as a second time flat owner, we didn't really have much problem with the HDB loan (HDB loan are applicable to first and second time applicants) and was granted with more than what we really need (we were able to take up a loan of up to 500K but our flat only cost 275K).
Thirdly, we need to identify the type of credit counselling that you are referring here:
1) Is it due to her over drafting and/or exceeding her credit limit with bank which amounted to bad credit debts?
2) Is it due to her fear that once divorced, she might no longer be qualified to take up a HDB loan?
3) Is it due to her low salary cap?
Lastly, credit counselling might not be all a bad thing. A credit counselling could be treated as a form of financial advise for future interest (pretty much like a financial counselling when you registered with ROM) and also as a form of foresight to better prepare you for what's to come along the way. Especially if one is to be divorced, has not immediate income, fighting for custody over children and is unable to provide for one self, let alone for the children.
So, to conclude, if you are able to at least provide an insight of your gf's "credit" concern, I believe i will be able to provide you with a better view on your query.
Hope this reply is somewhat, of use to you.
Cheers,
Jameson - Husband of malibu
(Happily married since 20-09-2009 with a 17 weeks old baby girl)
malibu
Member
She will still be able to take a HDB loan so long as, at the point of applying for the loan, she is debt free, has no outstanding credit card bill and has not been black-listed by HDB. A bank loan will mostly be out of the question. Unless she seek for loans from legal money lending agencies like GE credit but they do charge an exorbitant interest rate that can be really taxing.
A credit card or personal loan are deemed as unsecure loans where else a housing loan is more like a morgage where the house/flat you've purchase will be used as an insurance against you owing the financial institution. In the event should you be unable to repay your monthly instalment for a certain cumulative period, the property will be seized, sold/auction to pay back the balance. Although she planned to repay he debts by using the sales proceed from her current flat, bear in mind that, after offsetting the value of the unit, the remaining must be re-deposited into CPF. Any insufficient top up or balance must be settle by cash immediately. So, unless her COV is sky-high, I doubt she might have enough to settle her debt. That is unless her debt is 30k, her COV is a mere 80k and after settling everything and probably splitting the COV with her ex, she still has enough to cover the debt portion.
Although I wish to confidently say that she will be fine with the purchase of the second flat, bear in mind that housing law are changing from time to time and HDB will have the ultimate say based on a case by case basis.
She will merely be blacklisted from applying for credit card or taking up a personal loan for 3 - 5 years upon full repayment of her current debts. Depending on the depth of her debt.
In my opinion, it is best for her to settle her debts first and worry about a new flat later on. Worst case scenerio, she can still rent from HDB while waiting for her chance to come or, simply put up with her parent, siblings or relatives while waiting. Whichever solution that might be applicable to her that is.
I hope these points are somewhat of help and had provided her with a better understanding.
Cheers,
Jameson - Husband of malibu.
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malibu
Member
It doesn't matter whether she apply for CCS now or later as it does not have any effect on the sales of her current flat or the purchase of her new later later on.
A CCS is just like a financial management course where the credit bureau officer just go throughs your current financial status and advises you on what you should do to keep your credit and finances on path.
The damage has already been done when she incurred debt with one bank and was unable to repay them. Oweing to several banks would make her credit record unfavourable in future if she need to sign up for credit cards or take up a personal loan or bank loan. She would probably be blacklisted and barred from doing so for at leat 3 - 5 years depending on the amount she previously owed, the number of banks she owed and for how long did she dragged to pay back the debt.
In short, it is ok to go for CCS first and early rather then dragging it till the sales of the flat. The credit officer is merely trying to guide her on the repayment and how she could work out an installment repayment plan with the banks she owed. even if she waits till the sales of her flat and repay all her debts, that will not take her off the "black list". Once you owe a bank a debt and is unable to repay or the repayment has lapsed just once, you are already blacklisted.
Regards,
Jameson - Husband of malibu.
littlematchgirl
New Member
Hi Jameson, may I know what will happen to our flat if both parties refused to give up the flat during divorce? Btw, his contribution to the flat is much more than me.
malibu
Member
Well my dear, if that's the case, I think it doesn't matter even if she omit the credit counselling so long as she is still able to manage her debt.
However, just to share with you that, being able to pay the minimum sum every month doesn't mean she is financial free as she is still incurring the monthly 5%++ interest which started snowballing right from the time when she couldn't clear her monthly credit card spending.
Cheers,
Jameson - Husband of malibu.
malibu
Member
If that's the case, the court would usually give the ownership to the one who contribute the most if:
1) He/She is able to prove that he/she can sustain the remaining installment without any difficulty that may arise in future,
2) He/She has a stable income which meet the requirement of the housing loan and that his/her CPF account has sufficient funds to fund the installment.
In the event if both parties are unwilling to give up on the ownership, they must be represented by a legal body to resolve the issue. The initial offer might be to sell the house and split the proceeds after settling the balance with HDB, topping back the individual CPF account depending on how much you have each contributed using the money from the account for the past few years. The amount that you get from the proceed will also depend on the percentage you are contributing to the flat.
I advise against divorce unless really necessary, if you feel that you have been badly treated and taken for granted. Maybe you could try to talk it out with him and let him know how you feel. Try going for marriage counselling and mediation. Divorce is really a last resort especially if you have children to factor in and the effect would be devastating to them if they are still in their tender age.
Of coure there are other factors to consider as well should you wish to proceed but that is ultimately your own decision. I suggest that if you are being physically or mentally abused, do not tolerate for the sake of your children as depression might kick in and you might turn your grieves on your them instead. Initiate if you must but please, do be both financially and mentally prepared to go through the whole process for at least 3 years.
If need arise, you can always talk to my wife or me in person as we are only staying blocks away.
Regards,
Jameson - Husband of malibu.
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Qooqoocoke
New Member
I'm currently trying to apply for HLE with HDB and am in a similar plight with outstanding credit card debts of about 20K. Are you able to share your experience and whether my HLE application is likely to go through or not?
Thanks a lot!
Thanks a lot!
Hi im serving the debt repayment plan under CCS, i would also like to know if this will affect me applying for HLE. Ive sold my house and keen to take up HDB loan
However my huby does not know of my CCS.
but both of us are earning $7.2 k per month
Will we get a lower loan because of me? Though i have bonus twice a year' stable income for past 10 years.
Or will hdb based on my hubbys income alone?
Very worried
Il not try to use bank loan coz have a feeling il be rejected
However my huby does not know of my CCS.
but both of us are earning $7.2 k per month
Will we get a lower loan because of me? Though i have bonus twice a year' stable income for past 10 years.
Or will hdb based on my hubbys income alone?
Very worried
Il not try to use bank loan coz have a feeling il be rejected