This is about a person is owing huge money from institutions, mainly credit cards, and housing loan. The man is hiding from his wife that the outstanding in the credit cards.
The main reason that causes this problem is due to the imbalance and no proper planning towards income and expenditure in the family.
Although “talk money destroy relationships”, many housewives and man shouldn’t hide the reality in handling money or cash flow. This is because when problem comes, both the husband and wife will have to face it together.
Few months ago, this person, David, is under retrenchment by his company, while that is time his baby just born. It’s very unlucky.
Look in deep, actually even if there is no retrenchment, David still will be in trouble as well, his salary is about 2K RM only. Nothing left much after paying housing loan, his wife expenditure, and his 3 sons as well; now, his 4th son newly born. His wife is full time housewife.
David used to cover month end expenditure by sweeping credit cards. Over time, he had make minimum 5% payment every month, however this doesn’t last long as the total expenditure is more the total income available, lastly David’s credit card debts compounded to about 26K RM, which he has no ability to pay, even 5% minimum.
One thing would like to share here is, his wife has never get to know her husband financial status, until her husband “change job”, she then noticed her husband actual financial crisis.
Wife helped a lot, after knowing this. Being a part timer, she just able to helped neighbors to take care their kids and monthly earned about few hundreds ringgit. Currently his 3 sons and newly born baby is also taking care by herself, that’s why his wife not able to work outside at full time.
While David is selling ice cream, almost a half income compared to his previous employment.
Solutions provided include AKPK managed to reduce their monthly housing loan repayment, this make their spend-able income is more than ever. However, they will face the crisis problem, both of them work hard to cover the existing expenditure.
Recommendation include both of them shall have to discuss over all crisis. If expenditure occurred weirdly, these 3 things shall be done when have to, 1, Increase income, 2, Decrease expenditure, 3, Sell-off properties (last resort).