Need help to clear commitments (self.personal_finance)

submitted 7 months ago by blubblubblub to c/personal_finance

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I wanna help a family member to sort out her debts and finance plan. She was in a poor mental state and made some questionable financial decisions. Currently just started a new part time job while waiting for further her education, getting about RM2.3k basic a month.

Commitments: a. Motorcycle (shop loan) - RM213/month, loan balance RM7500 b. PTPK - RM230/month, loan balance RM21500 (planning to defer payment after she gets into uni) c. Credit card - minimum payment RM150, loan balance RM3000 d. ShopeePay - total RM3000 , range about RM400/month to RM1000 until September

I have a budget of 3-5k to help her for this. My ask is that if I can help her to pay (i’ll ask her to pay me back), which debt should I clear first? Don’t want her to keep adding debt because of the interest. Her payment ability will also reduce once she gets into uni as she will probably not be working.

Thank you all sifu!

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[-] Annoyed_Crabby 1 points 7 months ago

Maybe you can do shopee PayLater first? That loan is a whopping 15% p.a.

But if the term required her to lock into the monthly payment, then your next best bet is credit card, but that also depend if she sign the 0% interest purchase.

But if the credit card is 0% interest, the next would be motorcycle loan.

I assume PTPK is government loan for TVET? If so i'd let it run the course, since it's the highest amount and you can't pay lum sum with the budget.

My point here is to tackle the loan with highest interest, since it will cost more in the long run, and since shopee PayLater is notoriously known for the high interest my suggestion is to look into that first.

[-] blubblubblub 1 points 7 months ago

Thank you boss! This is so helpful - looking into Spaylater and credit card.

this post was submitted on 23 Apr 2024

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