New Year Plastic Bash
It is a festive season and everyone is in a festive mood. It is a season of celebrations, giving and feasting. But if you not watching your spending carefully (yes, I know your bonus is coming), you might fall into the debt trap.
Every month, more than 1,600 individuals turn to the Credit Counselling and Debt Management Agency (AKPK) to help them overcome their financial difficulties.
The number seeking help monthly has tripled since the agency was set up 18 months.
Of the number that receives counselling, more than 25%, or 430 individuals, sign up for the Debt Management Programme, through which AKPK helps them renegotiate their loan repayment schemes with financial institutions.
Blamed this on our very own finance foolishness, greediness, insatiable spending desire, and of course, easy credit approval by the banks. Now, it is common and accepted to have a carry forward balance in our credit cards. In fact, there are people walking around with RM10,000 - RM40,000 in plastic in their pocket. Some of these borrowers will never able to repay this debt.
But despite this, as the following ‘poem’ suggested, there will be more & more people celebrating with a grand plastic bash…
In the wind fall of easy credit and installments
Which fast approvals have brought me joy
And with more rebates and points
My card & I are BFF
Now drown in the pit of plastic debt,
Hounded by interest charges night and day,
I’ve still some cards that ain’t maxed yet,
I still the shopper’s game can play.
I know my debt woes will never cease,
I’ll never escape through bankruptcy,
These days no court provides release,
They’ve taken that way out for me.
No longer master of my fate,
No more the captain of my cash,
Soon I’ll pass through the AKPK’s gate,
But until then — a plastic bash!
Modified from Michael Silverstein’s Debt Rictus (A heroic debtor’s last hurrah)
X’mas shopping with credit card on the rise
My way of minimising unnecessary spending is to use only cash to buy whatever items as much as possible (although my credit card is with me all the time), as the cash you can use is limited to the amount you bring along, and seeing many pieces of RM notes being handed over to the cashier is a big reminder for me to spend less! ^_^
Oh, and, a stingy character like mine also helps A LOT! heheh!
I think a good way to do shopping is, even this is some common sense but people dont practise it:
1)Plan your shopping, write down all that is necessary, and avoid buying things out of what you have in the list unless the items is totally important and you miss it out on the list.
2)Discipline, if you have a budget of 5k to get a new TV, never exceed 5k even if by adding another 500 bucks you get ‘very good deals’. People commonly tell themselves that its a one-off purchase, and spending a little bit more will buy them quality and long lasting products. But if you spend a lil bit more there n here it will sums up to be a lot.