How many of us can really hold fast to the principal of " Cut the coat according to the Cloth", not many i reckon and if you are one of them, then let me share this true account of my friend Ah Weng, after reading i hope we all can be careful the next time when flash out the credit cards.
In 2003, he accumulated 8 credit cards debt amounting to 80k,(yes 80k),at that point his business plummeted,could not service the cards loan, so in early 2006, he was shocked to learn that after three years, the debt accrued at the interest of 18 % per annum with some other miscellanous charges, it came to a staggering plus minus 140k.
He told me this in 2006, i could still remember with tears in his eyes, he said he was so afraid that he would be declared a bankrupt,and asked me what to do. Being a dear friend to me, i said i would check with my lawyer friends, my accoutant friends.
Finally, i found the solution for him in the premise of Central Bank's debt restructuring department better known as AKPK. A repayment of debt was mapped out, he has to pay about RM1770 a month for the first three years, thereafter RM 2044 for the next 12 years, he is now 50 years old.
Met Ah Weng last friday, guess what? He still can't get out of the abyss of this torturous debt, he dafaulted on the repayments a few times and it seems that AKPK told him that it was the last straw, and certain actions will be meted out.... i can't imagine what would that be and i can't be of help either. Period.
I am sharing this not to run down a dear friend, but it is with all my sincerity i hope that we must really be very careful when it comes to money, more still as a responsible family man because like it or not, money sometimes can really kill..
Note : I have always liked this saying... " Every drop makes an ocean"
P/S : I am ok to drive a old car, after all it belongs to me not the bank