There are many advantages using credit card wherever whenever we can because:
1. our expenses are properly recorded
2. the credit card statement can be used as proof of payment when filing for income tax
3. get rebate on our expenses
4. emergecies : hospitalization, lack of cash when traveling overseas.
The best advantage is that it increase our cash in hand. Why do I say so?
Let’s say your fix expenses is RM5000 per month. You use your credit card to pay for all those fix expenses monthly. The due date to pay back your credit charges is 20 days after the statement date. Therefore, we can have the RM5000 put into our own saving account to earn interest for 50 days. Even better if you put the money in your homeloan-link account to reduce the interest charges! This means we actually have extra RM5000 in the bank!
Credit card really helps! (Only if you know how to use it)
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How to handle credit card debts?
I have about cc debts of 20k form 3 banks. I also have 22k of HARD EARNED savings in my current account. Would you recommend me to pay off the cc debts now??
I find it difficult to part with this 22k which I saved for the last 1 year!!!
The interest charged on your cc debts is very much higher than your interest earned from your FD or Savings a/c. So the debts in your cc will accumulate faster. It is better to settle the debts and then, start savings a/c and this time, make sure you do not accumulate debts in your cc again.
better pay off your debts. Within 1 year you can earn the money back
Dear KClau,
I can’t understand why we can extra RM5000 in bank account.
What I mean is that it is “like” having extra (not actually having) money. Some sort of we owe the bank first .. pay later without interest
BRO, HW TO VALUE THE LAND? HW TO CHECK THE LAND PRICE? PLZ ADVICE. 10Q.
Well, it is easy to plan but when comes on practically, most of us failed and your debt will slowly accumulating…..thus not all can adopt this so call using bank’s money…..just my 2 cents…..
I totally agree with you. Many people things it’s better to save money in bank than pay the cc debts, actually it’s the other way round. I just took RM10K loan from cc with lower interest and shorter repayment period to pay off my other debts in other cc. Once this is done I’ll pay off this loan ASAP eventhough i need to pay a small amt of penalty charges for early settlement.
Credit cards are silent killers if you do not know how to handle them. Better to stay away. I had just been approved a 40k limit card by hsbc, i am planning to cut it up. Life is miserable having to pay debts every month. As bad as owing the AH LONGs.
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