Hi, I just have a friend who fall into serious credit card debt. It is too late for him to realize the debt is really burden his life. and not just himself, but also his wife ! I just cant believe that such a discipline guy can get into this kind of messy.
Does anyone have any experience wich to share with us? Please do tell also how can drop into this messy situation. Thanks.

i don't really have credit card issues but recently i'm in a debt because the bank somehow combined two months of my spending and requires me to pay for those 2 months in one month. despite that i don't really feel the pinch until i can't breathe the kind because each month i have allocated some money for the debt and i set a limit to how much i can spend on my card.

basically your friend now should control and use cash to spend and revise his bill.

Some of my friend have. how much is your friends debt.

If your friend's case is really serious, try to :

1. Get loan from bank to settle or do a balance transfer. Survey around; i think balance transfer can be quite attractive too. That will save him a little.
2. Consolidate all your credit cards; meaning, don't keep so many cards in your wallet. 1 or 2 will do. 3 max.
3. Try to pay by cash instead of by card.
4. There is one organization that helps us to manage our debt. I can't remember the name though. Appear on tv recently.

All the best to your friend. By the way, avoid the SHARK (Ah Long).

Yes, the balance transfer might help your friend out... (some bank offer 8~10%p.a.)
If not, your friend may seek for the consultation from AKPK (government founded, no need to pay for their consultation)

Hope this will help...

Well, if he has a house under his name then refinance it would help.

I had a friend whose father owed the credit card around RM100K. His father can't afford to pay since now he is retired. My friend then "bought over" (notice it's in quotes ) the father's house in order to get a loan from the bank to pay off his father's debt.

People who fall into credit card debt DO NOT have discipline. There is no denying of that fact.

I use my credit cards quite often (occasional fine dining, petrol, grocery shopping and others) but I always pay extra to the bank when my monthly statement arrives. I am only using the card because I don't like the feeling of carrying so much cash around and I do earn some points or discounts from credit cards. Besides, it is more convenient for me to only pay for everything in one go.

Note: I am just a wage earner but I always know how much money I have spent on my plastics.

This post has been edited by jeff_ckf: May 30 2008, 09:51 AM

can try to arrange appointment with bank collection and check their debt recovery plans. if not may ask your friend to contact http://www.akpk.org.my/Help/DebtManagement...91/Default.aspx. they can offer some credit restructuring advice with the licenced banks. good luck.

There is NOTHING u can do about the situation because it's oredi happened. Right now, Ur friend will need to plan his finances and make sure he pays up ALL credit card bills; interest rates on credit card's so high it's not worth it - take out a personal loan if he needs to [it'll probably still be cheaper than paying credit card interest rates].

In the meantime, destroy all credit cards and stop using credit to make payments; whatever excuse he gives, it's nothing but just an EXCUSE.

Credit card is useful for emergency used, but it is strongly advisable to fully pay up the balance every month. The interest rate is way too high.

Tinkerbel is right, try to talk to bank to get a personal loan and clear it if the balance get too high...compare the interest before you do so.

Good luck

Same here. She used her credit cards to pay for her school and exam fees.

Try to get personal loan & pay all the debts
or may be can get loan from relatives
pay them back when life back to normal

after case settle try to use debit instead of creadit.

@lil`pumpkinz,
It doesn't matter what U use the credit card for; what matters is making sure U haf the $ to pay the bill when it comes at the end of each bill cycle

This i agree. I mean most ppl they first tot use cc just for convenience but little that they realise it the more they spend if they didn't keep track of it. By the time the stmt came u will be shock to see u have actually spend over 2k for that one month. If 2k i'm sure most of u don't even want to pay off the full amount terus.

But still take the effort to at least pay 1k then next month another 1k. So at least the interest earn by bank merely around RM15

I got frenz who use their card without even blinking their eyes till they see their bills then all they did is pay mininum every month and duwan to see how much they lose out on interest earn by bank.

Imagine if u owe RM10k then the min payment which is 5% every month would be RM500
which is a burdern. Some even min RM300 also feel the pinch.

That's why when u start prob paying the min payment that's when u shud know u have to do something about it.

Don't get the same stuff OVER and OVER again. Eg: bags / shoes / pants i mean this type of things goes out of fashion most of the time. If want to keep UP TO THE TREND make sure u earn the high end money first. If not then no point in following ur frens / collegues who might have a rich background.

Last but not least whoever feel they can control their spending in future and want to get loan may ctc me for further details. But PLS la don't spend anymore if not it's like dig one hole and cover one hole and dig a new hole again.

Now it is even more expensive to owe banks cos they don't give the 20 days interest free period anymore if you did not settle full previous owings. It is to make up for the reduction of bank's income I believe from those customers who pay promptly (even though it is only min pymt). Those who pay promptly will only be charged 15% interest compared to 18% so the banks loses 3% income.

Well it's still term as 20 days free period if u settle off all your previous o/s. If u did not of cos bank have to charge u interest for the previous o/s balance ma. If not bank earn what ler? But at least they are legal ah long in a way i guess.

In terms of bank loses 3%? i doubt big effect since if u still owing they still earning ma

That's why she's in deep shit now

Hence I suggested to take a personal loan to pay off this credit card debt. I don't know what the interest is on personal loans but it's probably gonna be below 18%.

For me, I make sure I haf the $ to pay up my credit card bills when it comes; ie. If I were to charge a laptop purchase of RM8k to my credit card, I will make sure I oredi had that RM8k in cash so when the bill comes, I haf the $ to pay for it. Of course, some might prefer converting these big purchases into monthly installments over X years.

PF if RHB like i mentioned if fixed rate only around 6.9% per annum per year only.

Anyway feel free to pm me for more details if really want to reduce ur debts.