Think about this for a while,. i have a friend who defaulted on his credit cards (by the way he has seven cards) and the amount was only RM70,000 in 2003, and due to the snowball effect, in early 2008, his credit cards debts has skyrocketed to RM160,000 + and his family and his business is at stake now.
He got sued but he managed to worked out a rescue plan with the mitigation from the Centre Bank which eventually compelled him to pay RM2000 a month for the next 15 years with all the future interests calculated.
I took a random survey among my friends, shockingly most of them are being shacked by credit cards debts, and almost of them cant settle the amount promptly, worst still, they are nonchalant about the the interest(S) .
The good part of using credit card is, it helps us to monitor our spending behaviour, the bad part is , if you dont pay on time, you get slaugthered, and the silly part is,we just dont bother to pay on time.
When times are good, we tend to believe that it will last, so we spend like there's no tomorrow, untill we are hit when bad times finally arrive.
Parents play a crucial role in educating our children good virtues like "cut the coat according the cloth" or "saving for rainy days" or even " delayed gratification",so when they grow up, they will know well about handling their money.
P/S. every drop makes an ocean