It is considered a debt.

Actually there is no reason for you to do this unless you are trying to earn more points for your credit card.

You can still pay your insurance monthly.

Insurance do this to past the risk of debt to the banks instead. Since they won't earn anything extra if you paid late or don't pay at all. So by letting you charge an entire year of payments in advance, they more or less done their job for the entire year.

Banks stand to earn interest from you if you pay late.

In the end, unless the points were worth it, you are actually putting yourself at greater risk.

You can't cancel you insurance if you can't afford it 3 months down the road. Instead you owe the banks now. And the interests will compound the more you don't pay.

Just want to add, try not to spend too much on your wedding. And don't take loans/debts for weddings.

Remember that it is just a 1 day event. Although it is a very important day, most married couples forget their wedding day after the 1st year. Reason being you will be dead tired on that day and probably glad the day is over.

As a married couple you still have the rest of your lives ahead, so don't spend your entire savings on a 1 day event when more life responsibilities are coming your way. House purchases needs a minimum of 10% down payments or fees. Don't forget minor renovations and furniture.

Car loans also need a down payments and don't forget future expenses for maintenance and servicing. Your fuel costs will go up as well.

Don't take the ASB loan first until you figure out the other loans you planning to take. Because if you max your ASB loan, it might affect your credit limit for other loan applications like housing loan and car loans.

You have a very good understanding family.

It is possible if you don't buy an expensive house or take a big loan.

Also possible if you've fully paid your car loan or bought a cheap car or ride a motor.


A 250k loan can come up to RM1.2k in monthly payments for a 30 year loan. (Apartment)

A 500k loan can up tp RM2.5k/month. (Landed house)

A 9 year car loan of 80k, can be up to RM925/month. (Vios)

A 9 year car loan of 30k can be as low as RM350/month (Perodua Axia)

Also depending how much initial cash you have for down-payments.


Even if you earn RM10k/month but still take crazy amounts of debt to finance a big house and a big car, you still won't be able to hit the 30% target for loan repayments.

So in essence, if a person wants to control his expenses, he must control his debt.

This post has been edited by Skidd Chung: Mar 30 2015, 06:42 AM