Scary Financial Stuff

Reading today's papers. Investment/money section, where advisors answer readers' questions. Always have some people who do things that scare the shit out of me :

Dec 5, 2004
She shopped till she dropped...under a pile of debt

Q A FEW years ago, I was suffering from depression and I went on a shopping spree every day. Soon my banks came after me. A few months later, I managed to pay back some money. Then I began paying the minimum required every month.

I got married three years ago and stopped working. Some time later, my husband was not able to continue paying the minimum on my debt.

I owed two banks about $22,000 plus interest and legal fees. One of the banks served me with a statutory demand but did not sue me after the deadline had passed.

The other bank seized some of my personal effects for auction a few months ago and I've not heard from them since. Is there a time period for the bank to sue?

I'm thinking of working again. Do I have to inform the prospective employer about my debts?

If I get a job and choose not to pay the banks, can they freeze my bank account?

I'm now separated and have two children to support so I can't afford to pay the bank even if I'm working.


How do people spend money like that without thinking of how to repay ? I mean, doesn't it scares them that they have no savings for old age ? It sure scares the hell out of me, not having enough money to retire and have to pick rubbish to sell.


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Q MY BACHELOR cousin died, leaving behind a Housing Board flat. He has no other assets except for a few hundred dollars in a bank. He owed several credit card companies almost $100,000. My uncle is not working, thus he is using legal aid to apply for the letters of administration.

Now, the banks have lodged a caveat against his application. What can my uncle do?

He definitely cannot pay off the debt. Should he declare himself a bankrupt to solve this problem?


Wow. How the heck do you choke up $100k of debt ? Even all my credit limits added together cannot get half of that !

I know, many things in this world, I will never get to understand. This is just one of them.