I have definitely overspent and maxed out my credit cards. I want to pay off my bills, but I also do not want to incur the excessive interest rates that banks charge. Are banks open to negotiation, when credit card holders approach them for a more reasonable payment plan? Otherwise, do I have any other alternatives?

Of course you should approach your bank to try to establish a payment plan but should your bank not be open for negotiation, there are a few options you can look at:-

1. Maintain a healthy cash flow in bank and try to clear your debt as soon as possible

2. If you do not have cash in hand, you may consider using the balance transfer services provided by banks.     Most balance transfer can loan you 2 times your income. That should help you in the short run.

While doing that, you should instill a STOP SPENDING discipline

In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any person. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, objectives and circumstances

ipac answers questions on all things financial every fortnight on AsiaOne, Just Woman. If there are financial questions, or just advice, you need, write to us at a1admin@sph.com.sg. Title your email - Financial Q&A for Just Woman.

Marion Chin, Vice President and a Licensed Financial Adviser Representative with ipac financial planning Singapore private limited, which is licensed with the MAS, Financial Adviser's Licence No FA100003-2