Credit card debt & personal loan again.......

Where are we going, and who is leading us into this? Look at these facts!

Kids take for granted that "money come from ATM", while 5 million people throng our 300+ shopping malls every WEEKEND and 41 people were declared bankrupt DAILY..... yet the banks declared more profits every QUARTERS!

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=nation

Bank 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

What are your position?

Do you want a credit card, Sir

I wrote about banks previously. That was about property loan. This time its about credit cards. I had one credit card which I've been using for almost 20 years now. Yes it is very long time to be loyal to a credit card. During these years I pay in full amount and promptly. I guess that record will flash up brilliantly on the credit score. I also had an OD with a fully secured collateral. The OD limit extended to me is only 95% of my few hundred thousands collateral value.

Last month during a visit to an exhibition, while walking past a "chin" booth.
"Do you want a credit card, Sir". Well, I'm not working currently, can I get one? Yeah, you can apply....They took a copy of my identification, copy of my current credit card, fill up pages of forms.

Two week later, someone called to verify all the particulars. And guess what I never hear from them again. Man, maybe I'm a credit worthless.

When later I relate this story to my paid financial planner, we laugh at this silly chin bank. He said to me, "You know what, premium banking want you as their customer". Yet I do not qualify for a credit card...how silly the rules are.
Ah, its ok when you know where you stand and what is your capability, everything else does not matter anymore. Like the saying boys will be boys, this is banks will be banks.

Never get attached to banks...remember they are only service providers but be part of them by owning them.

Stop paying the bare minimum on your credit cards!!!

Paying just the minimum on each card only prolongs the agony and increases the amount of total interest paid to your issuer. Save yourself over 20 percent in interest charges by fully paying off your credit card debt. Depending on your debt, you may add thousands to your wallet. Don't believe me? Try this Credit Card Calculator to see how many years it will take to pay off your balance based on your minimum payment. Results will shock you. Stop being a revolver to a card company.