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
I like using credit card for the points! I mean just imagine if I use my CC for every purchase! Wow every month I get loads of points and I can exchange for other gifts.
ReplyDeleteBut every month I try to do that, I get shocked by the amt and resist using cc. And ya! some people just don't realise that the amt of interest is a lot if they dont pay up! If not how CC earn money ya! :P
Hi Eugene! Happy Monday!
hi Eugene..
ReplyDeleteyes, i have frens too..using their cc to the fullest, never thinking of the interest they compound and only thought of paying monthly instalments... well, i guess some really dont have enough savings to buy that particular thing, so its like no choice.. paying monthly instalments rather than not having at all...
i used to slack on paying, the early days of owning a card. but of course, not now!
ReplyDeletei also limit the number of card i carry. i hav 3, guess it's enough.
I'll make sure that whenever I make a purchase with cc, I will have enough cash to pay up. I rarely use credit card, only if neccessary. Hope that those are in debts and heavy usages, they learn to use only when necessary or not it will just crept up to them.
ReplyDelete