NST have an article today about some Malaysians are caught in credit card debt trap… funny thing is that I was in Ipoh last day and my aunt talked to me seeking advice to help my cousin to settle his credit card debts that mount to RM30-40k.
My cousin is probably earning around RM2,000 monthly and can’t even afford to pay the minimum payment every month. His debts came from various spending, lots of the time in things that he doesn’t need… according to my aunt his branded cloths are pilling in abundance, lots of the time wore only once.
To make it worse my cousin is not trying to solve his problem, and still continue spending until the extend that my aunt had to hide his credit card. He is lucky that his parents are willing and capable of paying the minimum payment at the moment.
Well I am not a financial expert; I couldn’t give much advice if my cousin is giving up on himself. If he’s willing he can at least try to get some part time job, cut his spending on cards etc; while trying to negotiate with banks to allow 0% interest for certain period to avoid his debt pilling to the extend of bankruptcy.
Sometimes I felt that the banks should be responsible for issuing credit cards rather too easily; but in the end the banks never force anyone to get a card and to spend with it; it’s still the users’ fault, it’s still my cousin’s fault.
Don’t be a credit card slave; be careful not to be drawn into my cousin’s situation.
December 18th, 2006 at 10:39 pm
Have a few friends with the same problem. We too have credit card debt but fortunately ours is under control.
December 19th, 2006 at 5:14 pm
WHOAH that’s a LOT. but how come the bank never declined his transaction after certain credit limit???
December 19th, 2006 at 5:52 pm
I guess my cousin have a few cards, and with all the credit limit it’s not really that hard to owed the bank some 30k.
Also if he was consistently making minimum payment, some banks will actually expand his credit limit for him to spend more (and the banks will get more interest income).
December 20th, 2006 at 11:54 am
yes yes, you are right. the more we spend the more ‘they’ make .. and this is exclusive of the interest from outstanding amount
these credit cards ‘berhantu’
January 1st, 2007 at 12:05 pm
yup…
my friend has to be a “proxy” untill now because of his brother’s debt. there is still RM30k more still not paid. can you imagine that? it’s a useless if you got the big income but finally, you’ve got to pay someone’s debt. what a nightmare…
January 1st, 2007 at 1:01 pm
It sucks for sure mr_ombak… like my cousin’s case as well, his parents have to help him pay the debts at the moment; he did all the spendings and other clearing his debts… what a joke!
January 14th, 2007 at 3:25 pm
Dear Friends
Noted your credit card problems, currently working to solve everyone problem in Malaysia having Credit Card Debts.
Be assured, within 1 years time, you will be freed from your Credit Card Debt.
Targeting atleast 10,000 each year to be freed from Credi Card Debt
Best Regards
Vincent Joseph
December 16th, 2007 at 6:38 am
Are there any help or legal advice that the debtor can seek in Malaysia to help those poor sods..like a citizen’s advice bureau which offer free impartial advice?
December 16th, 2007 at 11:35 pm
I am not sure if we have a free service to help these debtors in M’sia.
May 15th, 2008 at 9:02 pm
i currently have credit card debt…..sometimes credit card really helpful for emergency cases!!
few months ago, my parent need a huge money for surgial, i spend about RM 4000.00 for paying bills(by credit card).
now i stuck……i affraid i will be “saman”