A Filipino homeowner who prefers to stay anonymous is buried in debt and plans to file for bankruptcy.
“Dati ang laman ng wallet ko mga credit card. Ngayon, iba na. Puro calling cards ng attorney,” he said.
Bad credit card habits impact financial stability and ability to pay mortgages.
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The Pinoy had used up his 9 credit cards with a credit line of $40,000. He said his family’s income is not enough to pay their $3,000 monthly house payment and his $800,000-house is underwater. The house’s value is now down to half.
He ended up using his credit cards to pay his mortgage. “Sa hirap ng buhay ngayon doon humantong katulad nitong mortgage ng bahay tumataas,” he said.
Eighty percent of his family salary of about $4,500 a month is now being used to pay credit card bills and mortgage payments.
The Federal Reserve said that on coverage, each American has about $44,000 in debt in mortgages, credit cards, auto-loans and other consumer debt.
People are now cutting their debt at the fastest rate in more than 6 decades, but they do it by defaulting on mortgages and other loans.
He said his only option right now is to file for bankruptcy and hope his debt gets wiped out.
“S’yempre mahirap ibenta iyan. Kaya sa mga kababayan ko huwag kayong mahiya o huwag kayong matakot. Kung ano ikaluluwag ng loob ninyo, do it! Do it for yourself,” he said.
Boots Aniel of the National Alliance of Home Owners for Justice said more and more people in America who are deep in debt are filing bankruptcy.
“Nasa batas yang bankruptcy so kung hindi mo i-a-avail yun at mababaon ka sa utang tapos na-stress ka tapos nag-aaway kayong mag-asawa…kung wala ka talagang solution then doon mo pasukin na naaayon din sa batas,” Aniel said.
While bankruptcy is a good option, Aniel said it is a tedious process. “Nasa pagpaplano how you’re going to present your plan, paano mo gagawin,” she said.
Aniel said bankruptcy application need to prove extreme hardship. Extreme hardship is usually when the debtor is elderly, disabled or not able to earn money in the future.
Source: ABS-CBNNews
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