Wednesday, May 16, 2012

This little evil in me ;p

Alhamdulillah, I have started to feel that my hard works really paid off. This month’s Premium Beautiful bonus had helped me to settle two of my credit cards debt worth of 6k, thank you Allah.

Yes, for an individual like me, who had a gunung of credit card debt, this is a whole load relief. Finally I have the taste of my own money to be spent wisely (instead of asyik kena bayar hutang kredit kad ;P), no more signatures on a piece of small paper which signifies a transaction. Yes, this is a real relief.

I have problems with credit card. Every time I did one transaction, I will tell myself, “It is ok. Will pay this next month’s salary” or “Will not swipe until I settle this transaction” etc. Totally lying, kan? It became worse when I had to swipe them to buy online flight tickets when Hazeman was in Kuching. I literally bought every weekends tickets plus when they are selling cheap i.e. RM 18- two ways. One time I had to withdraw my savings to settle the debts. Gosh, it was horrifying, macam zaman Dark Ages, seriously! I just had to get rid of them, by hook or by crook. This month swipe 1k, pay minimal amount, next month swipe RM 500, pay minimal amount. By 6 months, total debt RM 5xxx! Owh, now I am in real trouble!
But don’t get me wrong. Credit cards are not monster, unless not to individual who can think wisely before he proceeds with any credit transaction (which is not me). It’s like temptation vs. reality. It’s like looking at positive view vs. don’t look it into any view!
Tapi, sebenarnya if you are a wise people, with the highest inner strength to fight this little evil within you, then credit cards can be one of your best friends.  Let me provide you with some good info on credit cards, hehehe!

a)      My mother- she uses credit card very wisely (yes apart from she has more salary than I have + she has less financial commitment now). She basically will swipe 1 stuff that she wants so much which is costly i.e. her Fella Design make up table or her leather handbag which I don’t remember its brand which cost more than RM 1k. She will keep that credit card until she settled that particularly transaction; which means, before she swipe on another transaction, she will ensure she has no remaining credit. Yes, this is one very strong woman (with the strongest inner strength, hehehe!)

b)      Have you heard about Balance Transfer program? If you go to the bank, they will mention BT. I have used a few credit cards, most of them have BT program. This is a program which enables you to settle credits without any additional interest (apart from what you agreed upon, and it is a one time charge). For example for Maybank. They have a few program, 6 months-0%, 12 months-1% etc. So, if you have a debt of RM 3k and you kept paying minimum payment because you can’t afford to pay higher amount, it gives you an amount which you feel easy to pay without any other interest other than the one time interest/ charge.

Credit limit = RM 5000
Debt = RM 3000
You want to pay it for 24 months.
I.e. Bank A 24months; interest is 3%/per annum.
So, 3% x RM 3000 x 2 years= RM 180 (this is a 1 time interest) + RM 3000 (your debt)
= RM 3180 / 24 months
= RM 132.50 (monthly)
So, you are paying RM 132.50 for the next 24 months, and debt is gone =)

The best part is your credit card remaining credit (useable/swipeable credit) is RM 1820 (RM 5000 (credit limit) minus RM 3180 (your 24 months debt) until you finish that 24 months installment, so you will not able to do any transaction more than RM 1820 for the next 2 years hehehe! Selamat.. ;D. And yes, you must do the exact payment every month or else you will also get the penalty charge - 18% per annum (what do you expect la?). So, once you have a BT in your bill, keep the credit card in your refrigerator (bhgn yang sejuk beku tu) and only take it out after your BT is done,ok? Hahaha!

Disclaimer: Not every bank will have the same charges/ calculations. Certain bank will charge you on the interest that they mention to your remaining balance which I don’t like. So, please get proper advice from respective bank. I always opt for Maybank because of their easy peesy procedure, hehehe!

(p/s- Some of my Premium Beautiful customers used this privilege to purchase Premium Beautiful corset. So, they can do installment with the bank and enjoy the Premium Beautiful corset at ease =) Contact me for detailed information)

c)       Do you know that some credit cards offer you valuable points that changeable to vouchers and stuff that might be useable to you? Again, I am a Maybank credit card user so I love Treat Points (TP) that they gave me. Last month, I had my TP changed to Metrojaya voucher and I bought the whole set of my skincare Clinique at half price, yay! Some of my friends change it to perfume, Smartag etc. So we are actually saving while shopping credit card, hehe! If you are using Petronas as fuel for your car, opt for Petronas Ikhwan Visa credit card, you get to have more TP by using it. I have friends who swipe the credit card, and withdraw his money to pay the transaction on the very next day for the sake to collect the treat points, hehehe!

My skincare line ;p

Cukuplah 3 points,kan? Nanti other people think it’s a good choice to opt for credit cards pulak, hehehe! But, if you are a constant traveler like most of my friends who always had to travel with their athletes, especially to over the sea; then it is recommended for you to have at least one. You have no idea what will happen to you while you’re traveling, so this little piece credit card will be very helpful. But, of course don’t forget to inform your banker that you will do transaction from the countries that you are visiting then balik tu, terus bayar hutang-hutang tu tau! Hehehe!

Informative tak this post? I hope it does because sharing is caring,hehe!

Hanie Adzman