Wednesday, September 21, 2011

Credit card debt

Credit card debt is rising this country and it is likely to keep growing. Banks are making it too easy to own a card and many own more than one.

I urge you to watch this video. It is a ten part video but worth your while to watch them all. It explains what is credit card debt and how you can get caught in a spiralling problem which you may find impossible to get out off.

Even though this video made in US and apparently addresses a an American credit card problem, it is relevant to everyone everywhere. Many of the points brought up are also relevant to us in Malaysia. Not a month goes by without at least one bank calling me to offer me either a balance transfer, credit card upgrade on the limit, or - get this - a loan up to my credit card limit.

I understood that the bank is trying to get me into debt. And it frightens me  how the bank can give me a totally unsecured loan. What happens when I am unable to pay the installments on the loan?

It will be very easy especially for the younger working generation when faced with some temptation to accept a loan of say RM10,000. What will they do with it? Likely buy the latest iPad2 or new handphone, splurge on designer clothes and what not. Would they understand that they are spending money they do not have to buy a luxury item which they probably do not need? What do you  think?

5 comments:

Ilham said...

Very true Jimmy, one should not have many credit card. Dangerous.

One CC should be enough...that's why i suggested everybody to use only Hong Leong Bank Credit Card. Transfer all outstanding balance with other bank to Hong Leong CC! :)

Jimmy Liew said...

Haiya, you working for HLB?

Ilham said...

Ya..lor.3 months already.

Jimmy Liew said...

another evil capitalistic banker :)

Anonymous said...

Is this Credit Card Anonymous? Yes? Anyway...
My name is Wfdafdfg Tgdlsfglgs, but you can call me Weis.

Everyone else: Hello Weis.

Weis: I used to have many credit cards, 9 to be exact. I was drowning in the financial sea of Doom. But now I am saved.

Everyone else: Clap, clap, clap.

Weis: I only have one card now, but it's a touch and go card!

Everyone else: **More claps*

Weis: Say No to Credit Cards!

Everyone else: Clap, clap, clap, etc.etc

(Making a Difference)

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