Credit Cards: Where shall I begin? (A rough guide to credit cards from a non-expert)

Sometimes, it’s hard to understand what’s going on with credit cards. A single bank can come up with many different types of credit cards. All with individual features and benefits (and pitfalls as well!).

Let’s have a brief look at some of the different features of credit cards. Please take note that I’m writing based on my experience and past readings. So, if you notice any inaccuracies or you’d like to add some points, do share your thoughts as well.

[Read more…]

The dangers of a credit card (A look into the disadvantages/downsides)

Like I said in a previous post , it comes with great responsibility to have a credit card.

There are a number of dangers with owning credit cards. Some of them are:

1. You might get yourself in a mountain of debt. If you keep on spending and only pay the minimum amount every month, it’s as if your debt becomes indefinite. Default the payments and you might go bankrupt.

3. Credit card interest rates are the highest. It’s not a cheap debt.

4. Sometimes, it’s hard to stop when you gain momentum in spending, thus leading you to spend up till a point of not being unable to pay.

5. Fraud. Somebody could steal your credit card details and you won’t even know until it’s too late.

6. The perks and rewards that come with the credit card can tempt you to spend more. Often, credit cards reward you by spending more (accumulate points, gifts, and etc.) and this might lead you to do the wrong thing, i.e. spend more.

7. As mentioned again and again, credit card = BAD DEBT.

8. You run the risk of not being able to track your spending. The next thing you know, you are served with a statement to pay by the end of the month, and you realised “Shit, I can’t afford this!”.

As usual, share your thoughts below.

[Read more…]

I’ll be getting my first ever credit card from Public Bank

Due to my being an investor with Public Mutual, I was offered by Public Bank to apply for a credit card. I see some good in owning a credit, so I decided to do so. Read here.

My application has been approved and as of now, I’m waiting for it to arrive.

This will be the first time ever for me to be a Principal Credit Card holder.

[Read more…]

Why do I need a credit card?

Having credit cards in my name is very dangerous. I’m sure a lot of you would agree with me.

But why would I consider having a credit card in the first place? Well, based on what I read and what I know, there are a few reasons actually.
[Read more…]

Back to Basics: Paying Mortgage MONTHLY Vs. Paying Mortgage FORTNIGHTLY

Previously in the “Back to Basics” series, I wrote about:

Today let’s look at the difference between paying off your mortgage monthly versus paying off your mortgage fortnightly.

This concept can also work in the receiving money context (i.e. when you receive rental payments as a property investor, salary, and etc.). Read on and you’ll understand.

First question. Do you think that there’s any difference at all between paying once a month and paying every two weeks? There is a difference. A huge difference actually. Changing your payment method to the fortnightly basis payment method can pretty much change your life.

This little “strategy” is something that is often overlooked by many. It is in fact a proven method to reduce your mortgage faster by cheating yourself without feeling much pain in the pockets. Of course, this depends on the individuals as well. If the person is still very much unable to control his/her financial situation (i.e. struggling with having to set aside money for savings and investments), then there’s no point also.

Anyway, back to the discussion. Say your mortgage repayments every single month is $100.

If you pay the repayments once a month, by the end of the year, the total sum for 12 payments is $1,200, am I right?

However, if you adopt the pay-every-fortnight method, that means, instead of paying $100 per month, you are now paying $50 for every two weeks.

What’s the difference you ask?

Ok, how many months are there in a year? 12.

How many fortnights are there in a year? 26.

[Read more…]

Return to top of page

Copyright © 2019 · Faliq Fauzi · Log in