I am in so much debt its getting me into trouble. Im becoming depressed and always tensed. Debt collectors have been pounding me everyday at work and at home.
I have 6 credit cards
1- Citibank – Out. Bal. EGP 3000 (Equ. to USD 500 Int. Rate 2.5%M). Min Pay/Month: EGP 250
2- BNP Paribas – Out. Bal. EGP 14000 (Equ. to USD 2400 Int. Rate 1.9%M). Min Pay/Month: EGP 700
3- CIB (Local Bank) – Out. Bal. EGP 9000 (Equ. to USD 1500 Int. Rate 1.85%M). Min Pay/Month: EGP 600
4- Audi Bank – Out. Bal. EGP 5300 (Equ. to USD 900 Int. Rate 2.0%M). Min Pay/Month: EGP 350
5- HSBC – Out. Bal. EGP 7000 (Equ. to USD 1200 Int. Rate 1.85%M). Min Pay/Month: EGP 450
6- Premium Card (Local) – Out. Bal. EGP 7000 (Equ. to USD 1200 Int. Rate 0.0%M). Min Pay/Month: EGP 1000
Total Cards: EGP 45300 – Equ. to USD 7700 Total Min. Pay/Month: EGP 3350
I have a personal loan I took to get married with outstanding balance of EGP 75000 (Equ. to USD 12500) with interest rate 6% Annually Monthy installment: EGP 1650.
This makes a total payments per month of EGP 5000.
I get paid monthly around EGP 5300, which after all the above payments leaves me with only EGP 300 (Equ. to USD 50) and I haven’t paid the rent, utility bills, or brought food for my family.
My credit history is obviously down the drain and accordingly I cannot ask for a loan to buy out all my debt. I don’t know what to do and my life is simply falling apart. I’m on the verge of loosing my job because Im in too much stress and not performing well. And my marriage is fading away. I have been married for 2 years and debt is just killing everything nice in my marital relationship.
I need help badly and after reading testimonials here I thought Id give it a chance and send you my situation. I hope you can help me out – somehow!
I’m assuming since your debt is in Egyptian Pounds (EGP) that you are living in Egypt.
Your debt is impacting your life and marriage in negative ways simply because no matter where you live or what your currency is, debt creates the same underlying issues.
It’s not the debt that is creating this stress, job problem, and marital discourse, it’s the stress and mental anguish over not feeling in control or seeing a way to deal with the problem.
There are actually five typical emotional stages of debt but until you reach the acceptance phase you will continue to suffer as you are.
You sound like you are currently stuck in the early emotional stages of debt and that’s what is pulling you down.
As I remember Egypt does have a bankruptcy or insolvency system. I’m more familiar with how a business can attempt to reorganize their debt through a a settlement agreement or reorganization with the creditors. These non-judicial agreements need to be agreed to by the creditors and debtor.
Failing to come to an agreement with your creditors could result in a personal judgment against you which they may attempt to enforce to recover the money owed.
If you could find a local insolvency practitioner or bankruptcy representative they may be able to assist you with putting together a preventive reorganization plan. If a majority of creditors agree it could become binding on all I believe.
But based on the information you gave me, you simply don’t have sufficient funds to repay any funds on the debts.
To best deal with this situation I urge you to find a way to accept your situation for what it is instead of letting it consume you with regret and fear. That’s the part that is ruining your job and marriage.
You should also make local inquiries to find a local insolvency practitioner, or bankruptcy attorney and talk about what process may be available to allow you to deal with your debt in a judicial way to eliminate your financial obligations.
Please post your responses and follow-up messages to me on this in the comments section below.