Dear chengcheng,

1. Bank will only calculate your credit card debt based on 5% on your outstanding debt. If your outstanding balance for your credit card is zero, there's no debt for it. If you pay full amount aka all the outstanding debt on time, you are with zero credit card outstanding debt.

Dear koinibler,

1. OD will be based on your credit limit. How much bank finance you with OD.

2. Yes, it doesn't have fix monthly payment as OD is charge based on your utilization. However, bank will calculate based on your credit limit, because at any point of time you will utilized the cash amount easily. Hence, bank will take it as a debt of yours.

3. Usually it will be calculated based on BLR-1% OR base rate around 5-7% of your credit limit /12 months. That will be your monthly commitment debt

If you choose to refinance now, you have a lot of option and choices.

I heard BLR is increasing to 7% from other banks. CIMB just increased starting 31/1

Not necessary, just that BR rates are more transparent in terms of the bank's margin.

Dear koinibler,

1. People would prefer BLR for its non over fluctuating swing in changes of the rate. BLR tends to alter whenever BNM alter the OPR. Bank couldn't alter the BLR themselves at will, but they can adjust the effective lending rate. For the past few years BLR has been quite stable and the effective lending rate has been very low, hence people would prefer BLR more as the norm of low rate for past few years associate with BLR.

2. BR in general is more transparent, however, the rate could be altered by the bank quaterly but not compulsory.

3. In succinct, BR are more preferable over BLR as it is more transparent. There's no which is better, just which is more comfortable and preferable in the eyes of the consumer.

Bear in mind 3 ways of resolving the issue:
- regularize the payment in arrears
- full settlement
- restructuring

It's tagged to the loan, ie it shall be removed by the time you have fully settled it.