credit card debt and MPF

helllo there


I do have a really worrying issue of personal debt incured due to some personal issues which lead to unemployment/mental agony for 3 long years.


Though i am doing all good now the last couple years, i do have credit card debt amounting like a full years remnneration of my present job.


To make the things bad., my bank charges around 32% on interest which is 35% of my monthly salary.


I was told by the bank that if i can deposit 1/3 of my card debt into the bank and they will give me another 1/3 on soft interest which will make my life much easy.


now.. the problem is its really really hard for me to do any saving in the current situation as i have to pay 35% of my salary on each month on the interest alone.


I do have about the same amount of 1/3 of my debt in my MPF in the provider chosen by my company and if i can get this - I can solve this issue which have ruined by life.


1. What are the chances of me getting that money from the MPF provider?

2. will my company know this? which will make me into trouble as they dont want to know an associate who is in debt in the workplace.


since i am a 'foreginer' in Hong Kong and if anyone of you give me some advice here will be grateful.


thanks

JohnM

as far as I'm aware you can only withdraw from the MPF if you have retired or are leaving HK for good (of course with the latter things do change and people do subsequently return to HK for work, but in that case they cannot withdraw again when they next leave HK). Given that you are now working it would be difficult to arrange a 'short-term leaving HK for good'. In some countries there is also a 'exreme financial hardship' option but I don't know if that applies in HK. Suggest you check with the MPF (website first and then maybe in person).

The MPF will only pay out early in cases of leaving the country, as already mentioned, and cases where the person becomes disabled. There is no extreme hardship option and no, you can't tell them you're leaving the country as you wouldn't be able to cash it in while your employer is paying into it. It will raise all kinds of red flags.


I'm afraid you'll have to find a different solution.

As you have a job, I would suggest you go to a bank and get a cheaper long-term loan which you can use to cut your credit card debt repayments. Wing Hang has quite cheap loans. Is this the only debt you have or do you have any other loans?