smartconsumerbanking.com

This site has been ‘down’ for quite sometimes, even I can’t access to it.  Apparently some bugger posted a ‘virus code’ inside a comment as I allowed anonymous posting.

Now all the virus codes are clean and wipe out

Stay tune for continuous posting from now on

Now, though the fuel and food price hike impacts have not been fully felt, you probably have started to imagine the possible hard time ahead. So before we start worrying and fretting about money, it is worthwhile to imagine what financial freedom is.

But first, you need to realize that You will probably have to work 30 or 40 years more before you could amass enough money to quit your job and enjoy your retirement. However, while true financial independence may take decades, you can achieve a sense of financial freedom in just a few short years. How do you know when you’ve finally got your financial life under control? Here are the top 10 signs:

1. You’re richer than your neighbours, and they haven’t a clue
2. You remember your mistakes in money matters and investment, and they still a nightmare to you
3. You could easily afford to buy a new car, but you don’t
4. You still haven’t figured out how to beat the market. But you are an expert in investment’s cost and income tax trimming
5. Sure, you want the big house, early retirement, the fancy vacations and the kids to go to Harvard. But you long ago realized you couldn’t have it all
6. You don’t own any investments you don’t understand
7. You have all the insurance you need, and no more
8. You never do anything just to earn reward points
9. Whenever people ask you for investment advice, they’re almost always disappointed by your answers
10. You get excited when stock prices fall

Now, stop the day dreaming, write you own financial freedom list, step on it in full speed.

RM2.70 is already a reality, like it or not! But luckily, like a small consolation, you have one of those petrol rebate credit cards. But with the domino effects, very soon, cost of living will increase. If you live in a city, the inflation will be more than the 5% government projected.

And if you think you can count on the credit cards to ‘roll-over’ the short-falls, but before you do so, take a look at the following new changes on credit card:

Interest-Free Period
Effective this July, the good old 20 days interest-free period provides by credit cards will only applicable to those who make full payment before the due date. Those with carry forward balance and not paying on-time will be charged with the interest the day the new purchase is made. In short, the interest-free period is provided only to those paid in full and on-time.

Late Payment Charges
But there is more! The new late payment charge is now based on total outstanding amount, not minimum monthly payment anymore. The new late payment charge increases to RM10.00 or 1% on total outstanding balance, from 1% or RM5.00 of the minimum payment amount. That means if you have an outstanding balance of more than RM1,001, you would starting to pay more than the minimum RM10.00.

Annual Interest rate
First announced 12 months ago by Bank Negara Malaysia (BNM), comes this July, the tiered pricing structure (TPS) will be implemented where the annual interest rate reduced - for those good and prompt payment cardholders, 15% to 17% per annum (pending their payment history over a 12 month period), instead of the 18% previously.

Conclusion
So what do all these means? Let’s look at the following scenarios:

• Those with monthly outstanding balance who made prompt minimum payment

No 20 days interest-free period but enjoys a lower annual interest rate of 14% - 17% of the outstanding balance. No late payment charge.

• Those with monthly outstanding balance and failed to pay the minimum payment on-time

Late payment fee of RM10.00 or 1% charge on the total outstanding balance; 18% interest rate on total outstanding balance; no 20 days interest-free honey moon.

• Those that made full payment on time every time

Enjoy a lower TPS asl low as 14% per annum

You see, banks won’t just give-up easily; they give you a lower annual interest rate (TPS) but at the same time, they cancel the interest-free period and increase the late payment charge.

Bottom line, don’t use your credit card simply because you can afford the minimum payment. Better still, don’t use the card if you do not have the money. Cardholders who cannot be prompt in paying the minimum payment will be paying more than before.

Finally, If you are the reward points/rebate chaser, pay close attention to the outstanding amount.