There are about 3.2 million principal credit cardholders in the country with outstanding credit card debt at RM30.8bil as at the end of 2010, compared with RM26.7bil in 2009 and RM23bil in 2008.
The new method was part of the revised credit card guidelines issued by the central bank on March 18 this year.
Other measures that have taken effect include:
> A restriction on the minimum annual income requirement for credit card eligibility set at RM24,000 (from RM18,000 previously);
> Cardholders earning RM36,000 or less a year allowed to hold credit cards from only two issuers; and
> The maximum credit limit for those earning less than RM36,000 per year capped at double the monthly income of the cardholder from each issuing bank.
Source: http://thestar.com.my/news/story.asp?file=/2011/9/30/nation/9602326&sec=nationBank Negara's figures in March showed that personal loans made up 15% of the overall household debt but housing loans make up the largest portion at 45%, followed by car financing at 20%, credit cards (5%) and purchase of securities (5%).
The Star recently reported that about 147,000 people who were facing personal debt problems had enrolled in financial distress and management programmes sponsored by Bank Negara's Credit Counselling And Debt Management Agency since 2006.
Source: http://thestar.com.my/news/story.asp?file=/2011/9/30/nation/9603943&sec=nation
This underscores the strong consumerism movement and how it is promoting buying frenzy among the young and old alike.
The list of “must haves” is growing longer and it is not surprising that many of the items are actually status symbols.
One of the most easily replaceable items include mobile phones and other tacky communication devices. The big rush for Apple’s new iPad 2 is a good example of how much headway these tacky gadgets are having a hold on the people.
Even though it has been more than a month since its release, there is still a long waiting list for this latest tablet computer. Just try to place a booking for one with an authorised distributor in Kuala Lumpur and you’ll know what I mean."
Read full article by Angie Ng here
My comments is:
Be informed, not just listen to suggestions made thru the media!
If you a savvy person, choosing between Gen2 and a City makes a lot of different in your finance. The 4,998 difference in annual running cost, compounded over 5 years is 28,343 (at 6.3% annual return). That does not include the initial car price difference of almost 25,000. Go calculate and decide for yourself, am I throwing money out unnecessarily? Yep there are many other factors, but for me Myvi would be a much better option....The rule: You shouldn't buy a house that costs more than 2 1/2 years' worth of your income.
Why it works: During the wild years of the housing boom, consumers seemed to stop grounding their housing decisions in income. This rule can help remind consumers that income should be a primary criterion when deciding how much to pay for a house.
Grain of salt: One problem with this rule is it doesn't take into account how housing costs can fluctuate based on interest rates, says Pomeranz. For instance, a house that costs 2 1/2 times your income may be unaffordable in a high-rate environment but easy to pull off in a low-rate environment, says Pomeranz.
A better guide to whether to buy a home is rental prices in your area, says Finke. If you could rent a home that meets your needs for less than it would cost to buy and maintain a home, then renting is a no-brainer, he says.
Like the article, read full article here
Some tips that are truly ageless:
