smoulder wrote: ↑Fri, 16 Jun 2023 8:52 amThis.malcontent wrote: ↑Sun, 11 Jun 2023 10:38 amThe best way for most people to save is to not have the money available to spend in the first place. Savings should be like a bill that has to be paid every month — out of sight, out of mind… it never becomes available to spend.
TH1: The moment you get your salary, you can have 2 GIROs. 1 to an investment account which will constitute your savings. The other one to another savings account to constitute an emergency fund - avoid carrying around the debit card for this account, don't add it to your GPay or whatever so you avoid spending from it. Once it builds up to the level you need it to be, you can cancel the GIRO and add that money to your investment account instead.
You might want to look up the SRS account as well - it seems quite well suited to someone with your mindset.
I would not trust any loan consolidation company, especially one that spouts nonsense about how close you are to bankruptcy - clearly that is a scare tactic designed to spur you to take action that you shouldn’t.truthhurts1 wrote: ↑Wed, 21 Jun 2023 7:12 amsmoulder wrote: ↑Fri, 16 Jun 2023 8:52 amThis.malcontent wrote: ↑Sun, 11 Jun 2023 10:38 amThe best way for most people to save is to not have the money available to spend in the first place. Savings should be like a bill that has to be paid every month — out of sight, out of mind… it never becomes available to spend.
TH1: The moment you get your salary, you can have 2 GIROs. 1 to an investment account which will constitute your savings. The other one to another savings account to constitute an emergency fund - avoid carrying around the debit card for this account, don't add it to your GPay or whatever so you avoid spending from it. Once it builds up to the level you need it to be, you can cancel the GIRO and add that money to your investment account instead.
You might want to look up the SRS account as well - it seems quite well suited to someone with your mindset.
Thank you very much.
I need to also mention that I have raked up a massive debt of almost 120,000$ in credit cards and loans.. yes , shocking cause I have no idea how I used up so much credit but a 40,000$ cut in salary from the beginning of the corona virus can explain it. I should have adjusted my expenses but I did not.
I still make around 150K a year after the pay cut.
Growing up in an orphanage and then struggling at my foster parents family, my money habits were extravagant once I started earning good money and saving was never a priority.
I went to a company that helps with Debt Repayment scheme and they are asking for 4000$ to set this straight and let me pay off the debts in 48-57 months.
They told me that I am 30K away from being “Bankrupt” which was scary and shocking.
I am a bit reluctant as this means that the banks will flag me and will never offer me a credit card or loan here again in life.
If I try to pay off the credit cards On my own I will be paying something between 75-100K in interest in total for the next 4 years.
Any suggestion will be appreciated.
Thank you.
I am really in between rock and a hard place.
malcontent wrote: ↑Wed, 21 Jun 2023 5:02 pmI would not trust any loan consolidation company, especially one that spouts nonsense about how close you are to bankruptcy - clearly that is a scare tactic designed to spur you to take action that you shouldn’t.truthhurts1 wrote: ↑Wed, 21 Jun 2023 7:12 amsmoulder wrote: ↑Fri, 16 Jun 2023 8:52 am
This.
TH1: The moment you get your salary, you can have 2 GIROs. 1 to an investment account which will constitute your savings. The other one to another savings account to constitute an emergency fund - avoid carrying around the debit card for this account, don't add it to your GPay or whatever so you avoid spending from it. Once it builds up to the level you need it to be, you can cancel the GIRO and add that money to your investment account instead.
You might want to look up the SRS account as well - it seems quite well suited to someone with your mindset.
Thank you very much.
I need to also mention that I have raked up a massive debt of almost 120,000$ in credit cards and loans.. yes , shocking cause I have no idea how I used up so much credit but a 40,000$ cut in salary from the beginning of the corona virus can explain it. I should have adjusted my expenses but I did not.
I still make around 150K a year after the pay cut.
Growing up in an orphanage and then struggling at my foster parents family, my money habits were extravagant once I started earning good money and saving was never a priority.
I went to a company that helps with Debt Repayment scheme and they are asking for 4000$ to set this straight and let me pay off the debts in 48-57 months.
They told me that I am 30K away from being “Bankrupt” which was scary and shocking.
I am a bit reluctant as this means that the banks will flag me and will never offer me a credit card or loan here again in life.
If I try to pay off the credit cards On my own I will be paying something between 75-100K in interest in total for the next 4 years.
Any suggestion will be appreciated.
Thank you.
I am really in between rock and a hard place.
Some people should never have a credit card; it’s like a knife - it can be a useful tool, but not if you cut off your fingers. Such people should use nothing but a debit card for the rest of their life. That is just the reality.
My brother was in an even worse situation than you are, with debt that exceeded his annual pay, and he managed to pay it all off within 4 years with some extraordinarily harsh/strict budget measures and frugality that really tested the limits of what is humanly possible.
There is lots of good advice out there. Dave Ramsey is a popular one that has helped many. He not only has good advice but also a step by step process to get things under control. Lots of videos on the subject…
https://youtu.be/IMxciOsAoPY
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