Any Advice? Very bad Credit Card debt...

[bambbbam2]

I agree! Usually I use a generic approach for everything and thus stating the facts rather than my personal opinion. How you interpret it, it's up to the reader.

The point I was trying to make is that:
a) we don't know anything Gordo's situation, except for the limited details he has provided

b) We have suggested he speak to a financial counsellor (which is the best advice)

c) If he does have a gambling problem, then this is an illness and needs to be treated by a qualified medical practitioner.

The pithy advice I was referring to was things like 'Think about the fees you are paying'. If it is compulsive gambling, it needs to be treated properly. CG is not a logical thing that most people can simply 'will' their way out of by focussing on past losses.

 

[markis10]

Gordon

Best luck with your future, it sounds like you are taking steps that will help and as far as lifestyle goes, I would not be surprised if you see your values change as your lifestyle does (not making any judgements on your values as they stand). Commonsense would seem to indicate your lifestyle will actually be better, after all the interest on your cards probably meant you were working two job for the banks gain, sure your travel might be restricted but you willprobably find sleep is better, stress is less and you have a lot more time with your family - which is something money cannot buy IMHO.

 

[JohnK]

If it is compulsive gambling, it needs to be treated properly. CG is not a logical thing that most people can simply 'will' their way out of by focussing on past losses.

The compulsive gambler thinks they can win again.... time after time loses but still believes the next time they are going to win back all their money.

I noticed a billboard the other day with the slogan of something like "I just need more time. I can win it all back again."

 

[Maca44]

Gordo put forward his financial problems and asked for suggestions. He has been provided with a lot of suggestions, and would appear to have sought the appropriate financial expertise to assist him in that regard. As he is now in the hands of that expert, perhaps we can move on from this thread and concentrate on other issues relating to travel.

 

[oz_mark]

The compulsive gambler thinks they can win again.... time after time loses but still believes the next time they are going to win back all their money.

again? So are they trying to recreate some glory moment?

(and FWIW, reading this thread, I got the impression that gambling was something in Gordon's past)

 

[JohnK]

again? So are they trying to recreate some glory moment?

Possibly. If you won once a long time the ago and then you win again....

(and FWIW, reading this thread, I got the impression that gambling was something in Gordon's past)

Yes but there has been some recent posts advising him to stop gambling and most of his problems will be solved. It is pointless to advise a compulsive gambler to stop gambling....

 

[SOPOOR]

Yes but there has been some recent posts advising him to stop gambling and most of his problems will be solved. It is pointless to advise a compulsive gambler to stop gambling....

we are only trying to help,

gambling is a diseases/addiction or similar, like smoking can be classified, each person can respond differently, for some, all they need to be shown is one of those QUIT ads its enough, some take those patches, some need serious attention/intervention

 

[oz_mark]

...and I am suggesting that Gordon's post indicate that he was a gambler. This does not mean that he still is.

 

[SOPOOR]

...and I am suggesting that Gordon's post indicate that he was a gambler. This does not mean that he still is.

well I hope that is the case,

its pretty hard to go ahead without stopping/eliminating the main cause of the problem if that was the case

 

[medhead]

It's a tough step. Good luck Gordo, I'm sure it'll work out. No doubt you'll chip in here from time to time anyway.

 

[Rick93]

Yeah, I think this thread has just about been 'worked over'.

It's gone a bit off track....

Started with "bad credit card debt", and wound up focusing on 'gambling', which I admitted to as a 'contibuting factor' to my overall problem. I didn't mean to infer, that I was a chronic / compulsive gambler, with no hope whatsoever, and that's why I'm 'wasted'.

I'll take a break from posting for a while ( again ) .... ( I've already missed out on a 'once in a life time' AMEX Promotion !! )

I'll check back in, after my situation has stabilised.

regards,
GORDO

 

[cove]

Suggest you watch the SUZE ORMAN show on CNBC which is Foxtel 652 as she listens and answers lots of credit card and "want to buy" questions.

American Express were not in the easy category when I looked at an immediate restructure part 10 bankruptcy release plan for a young friend who has about $150,000 in credit card debt and insufficient income to pay it back.

Bankruptcy accountants who do these 10 cent in the dollar releases are very busy and no one wanted to do the fix for less than $15000 fee last month compared with $7,000 three years ago.

 

[Rick93]

Yes, this is important to know....

The 'flag fall' fee from ITSA is $4,500. without really doing anything.

The average fees for a ' I will fix your problem ' Trustee, is around $15,000.

That money has to come from somewhere.

I don't think I should go further on this here, but yes, there are some hefty fees, and some 'arrangements' to be made.

regards,
GORDO

 

[serfty]

... The 'flag fall' fee from ITSA is $4,500. without really doing anything. ...

I know of someone who used ITSA's services some 9 years ago; filling out all forms themselves and ISTR they said there was no fee to be paid at all!

I'll check on this.

 

[serfty]

... I'll check on this.

I have check on this and ITSA will only received any fees if there is money recoverable. Specifically:

ITSA will only be paid (in full or part) if money is received in the administration.

Fees and Charges

 

[vilemerchant]

Gordo do you have any significant money in superannuation? I believe this can be accessed if you're under 'severe financial hardship.

Since the creditors won't really negotiate while your accounts are current, my tactic would not be bankruptcy but simply stop payment on the cards. This will get the creditors into panic mode and they will be willing to negotiate if you threaten bankruptcy. Tell them you're willing to go into a payment plan to pay off a reduced balance if they stop charging interest. When the alternative is to get nothing they'll jump at it IMO.

 

[docjames]

simply stop payment on the cards. .

except that'll cost you even more in interest.

 

[oz_mark]

except that'll cost you even more in interest.

I don't know for sure, but I have a suspicion that much of the debt now is actually from interest.

 

[vilemerchant]

except that'll cost you even more in interest.

Since he's contemplating bankruptcy and non-payment anyway it isn't going to 'cost' him anything. Do you see why?

The chance of getting the creditors to negotiate on both the balances owing and the interest rates could cut a massive amount out of his debt and allow him to keep his house. The worst that happens is they say no and he goes bankrupt, which he was gonna do anyway.

 

[docjames]

I don't know for sure, but I have a suspicion that much of the debt now is actually from interest.

Sure, so more interest would only make it worse. Stopping payments will drastically increase accrued debt.

I think Gordo has now stated that he;s sought professional advice - and equally he'll post up for us when / how he's got it sorted (eventually!)