From googling, min total debts to be made a bankrupt is RM30k (but includes all debts - study loans, car loan, house loan, personal loan, credit card)

Sad to see a person overspend to the point they can't even make a 5% payment

Options
1) cut expenses - stop eating out
2) any assets (FD, ASB)? - take it out as the dividend earned is much less than the interest charged to the card
3) Balance transfer to other cards. usually it will be lower interest but if your friend is not matured enough to control spending, it will just be a bigger hole to cover
Cards with 0% rate now is Maybank and CIMB but I doubt your friend can get a card with a credit limit big enough to stomach that credit transfer, lest settle 13k in 12 months
4) AKPK - when you are unable to even make min payment, he should know he is already in trouble.

Option 3) does not necessarily solve your "unable to make min payment problem" since it just moves the bill to other cards (just not growing anymore if you manage to get a 0% plan)

Finally CUT the card! Stop him from spending. It is apparent he is not matured enough to handle the responsibility of unsecured credit.

This post has been edited by zenquix: Oct 4 2011, 03:05 PM

Good advice but it your read his earlier post, his friend cannot pay Balance Transfer RM13K Like I said, BT is a trap.

Anyway, thanks for your effort, I learned something today, in order to be a bankrupt, got to have at least RM30K debts.

Thanks for u kindhelp zen..


To moderator, sorry, ma fren don't hv acc @ here..

I'm just compiling any idea/option to help him out...

not really an excuse. The account here is free.

Guys,

I pay roughly about 40-50% for maybank card and about 10% for my cimb, every month.

I do have some spare cash, totaling about 50% off my entire cc debt. Basically, this is just a spare cash.

My question is, it is better to pay my total bill with my cash or keep with my routine?

TY guys

Well, if the outstanding in your MBB and CIMB is above RM1K, do a balance transfer between them and pay 0% interest. But after dong BT make sure you pay the amount required in full to avoid interest charges. If you already done a BT and paying as you mentioned above, then...... I don't know what to say.

As for the spare cash in hand, yah should use it to pay of your debt instead of being charged (more) interest, unless your cash can earn you more compared to the interest charges.

Click here to read my article Credit Cards are Cash Cow for Banks. Are you Working for the Banks?

This post has been edited by Gen-X: Oct 4 2011, 04:43 PM

Thanks,

Never do the BT before.

Thanks again, nice blogs.

1 more option you can do but it's not a good idea as well. Cash Advance from your credit card which having available credit limit and pay for the mininum payment. This is to avoid bad record... @@

if i only pay minumum payment/didnt pay full but got pay before every due date, will i be flagged in ccris/ctos?

No since you're not carrying forward any outstanding.

DONT DO IT! You will just kill him. He already have 13K debt, you want him to cash advance somemore with those killing interest and snowball the debt? He will be 30K debt in no time.

I know it is not a good idea but at least CCRIS won't show bad payment record

NO NO NO. dont ever cash advancecd from the card!

---

Added on October 5, 2011, 7:20 amif cant settle rm12k in 12 months BT, go for longer period, such as 24 months or 36 months (but no 0% offered).

example is BSN 24 months 4.5%

This post has been edited by erry-: Oct 5 2011, 07:20 AM

It was revised upwards some time back to its current limit.
Sorry guys, I stayed away from further discussing on that subject coz not something I fancy plus the questions and the excuses given are very lame. So I wish all the best to both of them.

This post has been edited by hye: Oct 5 2011, 08:57 AM

To those thinking of doing more than 12 months BT, please understand you'll be paying more than the interest rate quoted. Always find out the actual effective interest rate, you may even end up paying more compared to your current tier interest rate (based on reducing balance) for your credit card. Click here to read my article Credit Cards - App iPhone & Android, Easy Money and Bankruptcy.RE In this article I gave an example where a it shows a 8% loan with interest paid upfront compared to credit card interest rate at 17.5% reducing balance).

To All:

I just published my latest article titled - Entry Level Credit Card - Which Is Best For You? click here to read it. In this article I have for the first time stated the worst credit card in Malaysia!

BSN BT 24 months, the 4.5% is calculated 1 time only.

so rm12k will be charged rm540 then rm12k/24 = rm500.

meaning, 1st bill need to pay rm1040, followed by rm500 for next 23 months.

but then, if rm6xx also cannot pay, how to pay rm1040 and rm500?

like that ar, that means the effective interest much much higher than those plans that charge flat interest and payment divided equally.

Gen-X, at ur blog, for AmBank Carz Gold Visa, "purchase your groceries (more than RM50)", it should be RM100

BTW, BankRakyat also offer Classic Card (income 24k p.a) with no annual fee and FREE GST.
The only bank that give FREE GST.

But, the card reward system... rm10 = 1 points

and the points can only redeem umrah/holiday package

This post has been edited by erry-: Oct 5 2011, 11:39 AM

thanks for the feedback on the grocery thingy.

OT: and now alliance offer 4% for 24 months. rm12k will be charged rm480 only.

This post has been edited by erry-: Oct 5 2011, 10:32 PM