So I don't wanna disclose much info on this guy but let's say we sat down and chatted about loans and other financial stuff. He told me he was in debt with Shopee SpayLater and SLoan which both combined accumulating at RM5500, he is required to pay at around RM800 per month. He told me that he is going to clear it all this year if he sticks to his plan, he had drawn out this plan where he will pick up another personal loan from AEON of RM5000 with 12 months repayment of RM450. I asked him why, he said because instead of paying RM800 per month, he now only pays RM450.. I told him that it was a bad move to pick up another loan to pay off old ones because he is digging his grave deeper and deeper, while yes it is a lot less to pay per month but the time it took to repay all of them is another 12 months. I advised him not to but he told me this was a smart move, I beg to differ, he told me he COULD pay the Spaylater and Sloan without the need to pick up another loan but doing so would mean he is forced to be frugal, what do you guys think? Is this really a smart move or is he just a retard?

Smart move if he's not paying any interest. I personally would get more loans and pay them monthly. So I have more cash on hand. Considering inflation, you're actually paying less for the things you buy in the past. However, if he's paying interest perhaps not a very smart move.

450 per months for 12 months = RM5400
Loan is RM5000

So yes, with interest

If the aeon loan interest rate is lower than shopee interest then its a smart move.

People do it all the time when they refinance to get lower interest rate.

That's 8% interest. Depends how he lives with it? To me not too smart, unless he can make more than that with the cash on hand. He is just bad at managing his money I guess? Or prefer to spend beyond his means.

I would go for loans which are low. And I know I have hard cold cash that I can cover the loan, example interest that I'm earning more than loan. Yes, I would do that.

In my HONEST opinion shouldn't he just be frugal for 6 months? He said he can clear it all before the end of this year, I think he should suffer now and live a debt free life afterwards, not adding another 12 months of slavery.

he's just shifting debt, not reducing it. he'll end up paying more interest and staying in debt longer. now that he feels more comfortable with a smaller monthly repayment, there's a good chance he might borrow again. it’s more about avoiding discipline than solving the root issue.

honestly, it’s short-term comfort that leads to long-term burden but i wouldn’t argue with him. people have different financial mindsets. it’s not necessarily wrong, just his personal choice and lifestyle. we need to accept that there are people like him in society. the best we can do is break it down for him and let him think it through. if he gets it and tones down his spending, great. if not, that’s his path. you’ve done your part as a friend.

i had similar situations here too. with several credit card debt on my shoulder, it make me thinking to find one solution for all. few bank had contact me to give a solutions to take settlement loans. how i able to know its worthy or not?

current:
UOB cc: 15k ~ 1k/mth
CIMBcc: 5K 400/mth
Aeon: 10k 600/mth

with current expenses, there is a month that i had to use my cc.

i watch ramsey baby step, but i not able to understand correctly how its works. any thought?

Balance transter with 0% interest ( 1 year ) to 1 card then settle focus on the payment plan . No brainer move bro .

Shopee if not mistaken 18% aeon maybe 7-9% . Ya in a way yr friend right but confirm he drag the loan tenure for sure which make him stupid also .

If you want to follow the ramsey baby steps:
1) cut all your credit cards, because they are anti-debt and do not want you to incur additional debt while paying off existing debt.
2) have 1k emergency fund.
3) after paying all the necessities (food, utilities), all other money go to paying your debt using the snowball method (smallest total, regardless of interest rate), which in this case is the 5k loan, then 10k then 15k. put all you have into the smallest, while paying the minimum on the others. you will withdraw all savings/investment to get rid of the debt. you don't put money on ASB to get 6% when you have CC debt at 18%.
btw, you would also need to cut down on the lifestyle - no holiday trips, no eating out, etc - they would say the only time you are in a restaurant is if you are working there.
4) once you have paid off all debt, then set 6 months emergency fund
5) then start investing your money.

This post has been edited by th3.h04rd3r: Jun 13 2025, 01:33 AM

9.85% loan rate RM5000 with 12 months repayment of RM450. https://seller.shopee.com.my/edu/article/14034
8% loan rate, AEON of RM5000 loan with 12 months repayment of RM450 (RM5500 for 12 mths)

Anyway 8% loan rate is Q high, i rmb i saw a few 5% to 6% loan rate
As mentioned abv, there is Balance Transfer of 0%...which is perfect in ur scenario. Thats abt RM416 per month

debt free live is awesome

Good morning pundi

just use affinbank 0% interest 0% admin fee.. they have promo yearly and everytime i see it's there I'll just sign up. i don't have much to BT though usually around 10k? but always do so when they got promo.

Paying of debt is one thing, discipline is another. Advise your friend dont gatal2 payoff then add debt again.

tell him it's 2x5 5x2 even if he chose to cover debt with another debt, he's just expanding his debt from short term to long term: extending his debt term.

Assuming the SPay and Sloan debt pay total of RM800 per month until end of this year: meaning remaining ~7 months x RM800 = RM5500

If he chose to cover the SPay and Sloan debt with AEON = 12 months x RM450 = RM5400

Is it worth it? In this context no.

He may feel that 400 spreading into 12 months may not be hard on him compared to paying 800 monthly. Basically he has more to spend during that shorter period but paying more for that benefit. Everyone has different priority, so hard to generalised. Something you may feel stupid could be smart to others.

I'm a person who always spend below my mean. I don't take loans unless needed to and usually those would be 6 figures loan instead of these small amount loan.

Shopee SpayLater and SLoan which both combined accumulating at RM5500 already incurred interest, so now get another loan with 8% pa to pay off.

Trust me, it will not end there. There will be another with interest to cover aeon.

All those are fixed rate loans.

Bank: Thank you

This post has been edited by jojolicia: Jun 13 2025, 09:07 AM

morning

good to be debt free....

i owe bank over 1mil..... anyone got any bright ideas?

u sign agreement means u wanted it. so now pay monthlly jer

he probably needs cash flow, so 450/month makes more sense than 800/month.

if he doesn't take up more loans it still works while not really affecting his lifestyle. the extra interest is worth maintaining his lifestyle.

Rule of thumb, getting a loan to pay off a similar type of loan is digging a grave

I think both of you is kinda noob to not talk about interest rate

Seek help from AKPK.

am 100% onboard with you - as the local saying goes, bersusah2 dahulu bersenang2 kemudian.
the sooner one is debt-free, the lesser the burden to bear = less stress on you mind body and soul

i did see all this pay later stuff. but u know what, i NEVER EVER used their pay later schemes. Why? cause i only spend what i can afford and not put myself in a debt. If you dont manage it properly you can be in a deep hole you cant dig out of.

if he really needs something maybe get a job and start saving and live within means.

Never understood all these debtors who dig themselves a hole of their own doing. WORSE, if they come to others to help them, when THEY PUT THEMSELVES into this situation firstly. If they are asking for money, just say no and walk away. that simple, you don't need to care

forced to be frugal? well if he don't want to live like that than just get a better paying job or go out and do more hustling if he want to be spending more. There is no easy shortcut, not with these pay later schemes, it's all a debt trap

anyway i think your friend is delusional and not acting responsibly. You better hope this fella does not come to you asking or money out of desperation. DO NOT GIVE them any money if want advice, u can give that for free. but it sounds to me like he is laying down his sob story hoping you bail them out. cause why is it your business he is sharing this thing with when nothing to do with you? is he trying to set you up to pity him and help pay?


ok here is another example, people take a house loan, they got a stable job and already done the math they can pay back within this many years etc. basically before they even take out the loan they already had a plan to realistically pay off the house loan. this is a normal situation of taking a loan.

But your friend here, seem like he never ever intended to pay back the pay later at any point. Now he is in deep trouble. Totally irresponsible

This post has been edited by Moogle Stiltzkin: Jun 13 2025, 04:14 PM

I assume those are minimum payments?
Like that don’t know how many years you need to settle the debt lol.

First, make sure you have money left every month.
Second, you don’t have any money. Don’t pannai pannai go sign up for oversea trip latest gadgets coz after servicing min payment you got money left or quota left in cc. You don’t have money.
Third, try find any of your cc offer 0% balance transfer. Apply for it to the amount you can still service comfortably monthly to cover for the other cc. You don’t need to cover for whole amount. The idea is to reduce interest as much as possible. Everything little counts.

Actually I don't understand how you guys can accrue so much debt via credit card.

Just hold your horses and don't purchase that thing, is that so hard?

Excluding health emergencies etc.

I'd do this sometime, to clear CC debt, usually caused by high spending during festive period
but only IF NO INTEREST on initial debt, and low EIR of the resulting loan debt (0% balance transfer)
getting loan to pay off interest is retarded
but then bank love these ppl

Impulse buying. Most purchases, in general, are due to this behaviour by consumers

If the new interest on the loan is lower then it's a smart move.

This is what many financial advisors recommend also. Some banks offer loan consolidation with 6 to 12 months no interest.

If you are able to stick to the repayment plan it's a good deal

thank you.
i hope either one of cc had 0% balance transfer.

Use less or earn more jer..no secret recipe ahahahaa

Compulsive buying is a form of addiction lo and lack of discipline to correct.

Like those that non smoker wont understand a smokers urge and feeling wanting to smoke. Or a coffee lovers craves for the cup of coffee. Or a gambler's itch to gamble -easy to say just dont gamble lo, but its a form of addiction. Itu macam la

Need behavioural change 1 to correct it, so its not easy.

1) Which effective interest rate is lower ? Taking into consideration 6 mnths vs 12 months too.
2) Can he afford to pay RM 800 a month to clear soonest ?
3) If he can afford, what is he gonna go with the diff (800-450) ?
4) Will he change his behaviour if extend his loan to 12 months ? If still continue with more purchase, new loan then how ?

Item 3 and 4 is most important factor to make him back on good financial habits.

If Spay loan interest is higher than AEON then is a good choice.

Ultimate goal with playing debt game is that you can generate more return using the cash borrowed after interest.

If you cant generate return with debt, second choice is zerorized the interest to pay, last is reducing the interest.

Correct use of debt usually opt for one of the below:

Scenario 1:
Borrow RM1k, interest paid rm100, invest RM1k in something to generate RM1.2k, nett RM100 profit after interest.

Scenario 2:
Borrow RM1k, interest paid rm100, invest RM1k in something to generate RM1.1k, no profit no loss interest.

Scenario 3:
Borrow RM1k subject interest paid rm100, borrow somewhere else RM1k to repay first loan, with interest RM50, nett loss RM50 instead RM100.

Main objective of debt is to help you to get more money not less.

Like u stay in Kajang which salary for job is RM5000/mth, if you work in PJ salary is RM5500/mth. So you take loan buy a car with interest RM110 per mth makes sense, but if you buy a car with interest RM600 per mth dun make sense. Not inclusive petrol/electricity cost.

Actually to settle debt there is no other way than

1. earn more, pay faster
2. lower the interest
3. dont occur extra debt to it

We overspent to feel good when to do purchase or own the thing, but then need to face the consequences to covered the "good feeling". It's time to cut down all the expenses and stay low for the debt 30k atleast for 6 months or a year.

just to let you know there exist credit cards that are "designed" for minimum payers with super low interest rate. same goes for certain bank loans

having a huge credit facility is a very advantageous perk for many. alot of them have the money and financial intelligence to know that not utilising credit facilities are foolish.

just like your case above, lets use a simple example i heard before which is very common. lets say one dude who earns RM10k/mth owes a bank RM100k in CC expenses/loans/debts whatnot. but dude didnt want to stop his current high maintenance lifestyle at all to clear the debt to zero

so what the fella did was apply for those high credit limit credit cards or loans with low interest rates with long tenure (lets say 2%) then balance transfer whatever his purchases over to them. now all he need is to just pay RM2k in interest every month and the min payment of 5% of RM100k (RM5k), total RM7k/mth. he will still have 3k left to "spend/save"

this is how usually the rich play around with credit facilities and afforded really expensive things.

He's not eligible for a credit card unfortunately lol

without knowing the interest, hard to give accurate advice.. those amount is installment or minimum payment?

the key word is cashflow.

if he dont have enough every month to pay the 800, then yes he should take the loan. if he have surplus after deduct the 800, then dont need.

which is a thank god moment, cause god knows how much hell spend on it lol

Save by Penny Spend by Pound, anything lesser than RM5000 shouldnt be a problem
there is something wrong by the root in TS mentioned case

everyone sounds like master of finance on paper... do numbers. but in real life, doesn't know where money goes.

best to clear loan asap.