Colin Charles Agenda

Malaysia slugs credit card users who don’t pay up

So, it seems that with effect from July 1 2008, Bank Negara Malaysia (BNM) has decided that those that don’t settle their credit card bills in full, will not be granted the 20 interest free days on new purchases. So, 18% starts the the day you make a purchase!

So for those making minimum payments, watch out. This move, will bring you deeper into debt! Yet another thing you can thank the Badawi government for, as more and more Malaysians are putting their fuel on credit.

Statistics show that one-third of the 2.7 million credit card holders in Malaysia settle their bills in full, every month. I wonder what the demographic of this is like, though.

All in all, I’m glad I started out with the practice of using a credit card as a replacement for cash, and settling the bills in full, on a monthly basis. Maybe, this move will make the idea of a debit card, a little more friendly?

Tough(er) times ahead for Malaysians, I’m sure… You think RM2.70/L is bad? Wait till it goes up (crude oil prices are at an all time high now).

Will this move, by Bank Negara, have an effect on you?