Tuesday, June 3, 2008

Do not lose out on interest

You know how banks these days are always offering free credit cards for life? I always thought those were just gimmicks you know, because once you clarify with them further, you will realize that it usually comes with conditions. Some cards require you to swipe at least twice a month, some require you to swipe a certain amount a month, or some require you to maintain a certain amount of balance every month to be carried forward. I think the trick is they want you to spend more and owe more! Besides, there are also advertisements these days informing consumers on how you could easily ask for a increase in credit limit just so you could purchase that special something for that special someone. I still could not fathom this point, because if one cannot afford it, one should not borrow beyond one's means. However, many may beg to differ, and hence, they would end up with huge debts with the credit card banks and with that, a huge amount of interest as well. Eventually, the interest would mount up and the burden would weigh down upon you, rendering you helpless. However, fear not! It's still not too late to turn things around, with many zero percent balance transfer plans offered by various banks. My advice to those who have incurred large debts and mounting interests, is to quickly sign up for such a 0% balance transfer, so that you could reset your interest amount to zero, and then to quickly repay whatever debts you have, even if it means having to eat bread for the next few weeks. No doubt it wouldn't be an easy task, but it would be a start to a debt-free life!

3 comments:

Bamboo said...

Well, there's always direct access which is free for life... and it was rumoured that you only need to give a call to get the annual fee waiver. Anyhow, I really hope that Malaysians would take up the trend of using debit cards instead of credit cards. Then there would be less people saddled in credit card debts!

CYLEE said...

there are pros and cons in everything. if u look at it in depth, u'll know that credit card is much better than debit cards.

Debit cards deduct directly from ur checking account while credit card gives u a period of time from ur purchase to pay up. Whatever interest u earned in ur account for this period of time is actually urs. It might not amount to much but it's still money.

The only thing that one need to practice is self control. If u can't pay up when the time comes, dun buy!

iamthewitch said...

bamboo: Yes, but you need to understand the Direct Access free for life is only for graduates. Those who are not graduates are not eligible to apply...

cylee: I agree with you totally CY! :) I think it's all self-control, never wear a hat bigger than your head!