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?
Nope. One of those that pay in full every time. Debts of any sort is something I avoid.
Whilst this might be news for Malaysia, such terms have been common in Australia for quite some time. I know it’s the case with at least one of my cards. I too pay them off monthly…
Hi Mikal!
Heh, like a charge card then… Well, my ANZ and Commbank cards are still “real” credit cards. Oh well, doesn’t really bother me, but seeing that people are putting their lives on credit, I wonder what this will do to people’s debt, and how quickly people may end up reaching the road to being a bankrupt.
I’ve firmly believed that a credit card should be treated no different than a charge card (like AMEX, or Diners), from a consumer perspective. Spend what you can, and pay it off in full. Credit card debt, after all, is bad debt.
i have long decided to use my credit like a debit card – if i can’t pay them, don’t buy them.
so far so good :)
Hi wahlau!
Yup, so you’re in that 1/3rd bracket they seem to talk about :)
In the meantime, as of last year, 2/3rds are not in the bracket, and I wouldn’t be surprised that with the rising cost of living, that also rises.
i personally heard quite some incidents where card holders “move” their credit from one card to the other, and live by paying the interests.
scary i think. well…
And then, there was unhappiness:
http://thestar.com.my/news/story.asp?file=/2008/7/3/nation/21722679&sec=nation
@wahlau: ah, the fated balance transfer scheme… See plenty of ads for it in the papers. Pity that it all leads to greater debt
“I wonder what the demographic of this is like, though.”
do you have to wonder?
seriously…..
You think RM2.70/L is bad?
Time to build more monorails! How about some pushbike paths in KL?
and now people are blaming the government for not being considerate. i wonder who got himself into debt in the first place (of course minority have no choice… but majority?)
Yet another story:
http://thestar.com.my/news/story.asp?file=/2008/7/14/nation/21806931&sec=nation
“Without the grace period, there is no difference between using a credit card and paying cash,” he said.
He added that if the system continued this way, people would be discouraged from using credit cards.
Anyone for an amex? :)
I don’t mind Amex. Seriously. How does Amex work by the way?
Hi Mikal!
Heh, like a charge card then… Well, my ANZ and Commbank cards are still “real” credit cards. Oh well, doesn't really bother me, but seeing that people are putting their lives on credit, I wonder what this will do to people's debt, and how quickly people may end up reaching the road to being a bankrupt.
I've firmly believed that a credit card should be treated no different than a charge card (like AMEX, or Diners), from a consumer perspective. Spend what you can, and pay it off in full. Credit card debt, after all, is bad debt.