Credit card offers a very convenient way of purchasing virtually anything without cash. Well here’s the deal, it could allow you to make purchase with the so-called ‘future money’, but if you are not careful with your spending, you might end up in a whirlpool of debts. And we have solid facts here. New Straits Times on August 21, 2017, reported that Malaysians have an outstanding balance of RM 36.9 billion on their credit cards. While 43.6% of total cardholders settled their credit card debt completely during the January to June 2017 period, another 43.6% only paid the minimum 5% of their outstanding balance, in the same period. The remaining 12.8% are cardholders who did not manage to pay the minimum required of their outstanding balance, before or within the due date. That’s a whopping number of defaulters!
So it would be wise for you to understand the pros and cons of credit card and get to know the right way of using them. However, if you do end up landing in hot water over your mounting credit card debts, here’s some useful and effective guidelines on what you could do to pull yourself up from the mess.
Sort your debts in order by arranging them in an organised way. List all your debts that include credit cards, car loans, personal loans and mortgages in a systematic way. You could have a clear look at how is the current debt situation and which score should be settled in the first place. In other words, you could arrange your debts according to priority, making it easier to track your finances in the future.
Nothing goes wrong in searching for financial advice from professionals like Agensi Kaunseling dan Pengurusan Kredit (AKPK). Apart from having free consultation with governmental bodies, you could always search for more advice on prominent financial and debt management websites like Smart Wealth.
If having a new credit card is still within your capability or you still have unused credit card, you could consider moving part of your existing credit card debts through a balance transfer plan at a low or zero interest charges.
Put more emphasis on debt with the highest interest charges to save more money! For example, you could save more by settling your credit card debts with 17% annual interest charges first rather than your personal loan with an interest charge at 6.99% per year.
Your bank would love to facilitate your repayment because you are holding their money! So go ahead and talk to your bank to sort things out nicely.
One of the best ways to clear your debts is to engage professionals or financial experts who would prepare a tailor-made solution for you according to your needs and situation. If you are eager to overcome your unrelenting debt problems, seek help from Smart Wealth, your trusted debt management expert!