Have you ever run into credit card debt? Nowadays all banks came out with all sources of credit card promotions such as lifetime annual fees waive, zero % balance transfer, cash on phone and etc and it is so easy to apply for credit card. I believe more than 50% of the teenagers over 21 years old have at least one credit card in hand especially those young fresh graduate.
I don't know how those banks approve the credit card application and base on what terms and conditions they approve the credit limit. I not sure whether my calculation is correct or not but for example maximum salary for one fresh graduate (engineering) in Penang job market should be RM 2,800.00, business graduate should be less around RM 1,800.00. So let said petrol expenses per month RM 300, car loan RM500, daily expenses on foods minimum (RM10 x 30 days = RM300) already RM 1,100.00 so how about other expenses and allowance to parent, how much else left for the saving?
With one credit card on hand they can easily swipe and withdraw cash from ATM machine but how many of them afford to pay back before the due date and aware that bank actually charge 18% for the overdue amount. For ATM cash withdraw the bank immediately charge the interest on the second day so can you imagine the interest plus interest roll over amount?
Recently I encounter one situation, one relative of mine run into credit card debt and seek the help of my parent. When I took all his credit card statement and went through it, OMG I can’t believe the bank approved such big credit limit for him, just two bank credit cards along the credit limit already more than RM 300,000.00 I nearly fainted when I saw the figure and he is only a chicken seller at market. From there I learn and find out about cash on phone, balance transfer and etc.
Although credit card can be very useful and convenience especially during emergency but one advise on credit card spending, when you swipe the card you will be very happy but please make sure you can and afford to pay back before the due date.
2 comments:
I am very surprise to hear that he can actually get such a high credit limit. For a platinum card holder, the limit is around RM80k. and I have see listed company bosses with RM100,000 per card. and this Chicken seller actually worth more than that! hahaha
do you mind telling me which banks are those?
I don't mind really want to boycott the bank. One foreign bank start with C and one local bank start with R.
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