Credit cards are not bad things if you use them wisely. I pay mine in full each month as I see no reason why I should let them charge me interest for my purchases. I make sure that I have the money to pay for whatever I buy each month which means that every purchase needs to be thought of in advanced, in short, planned.
Let me tell you this: I didn't start out this way. I have had my fair share of credit card debt in the past which I worked very hard to pay down and off. I put a running tally of my credit card balance on my fridge. It gave me a constant reminder of why I should control my spending and at the end of each month, I would happily extract the amount that I paid and watch the outstanding balance reduce. For me, that was motivating.
Well, all that, I am proud to say, is in the past. Now, I make my credit cards work for me. I'm currently using my Maybank Amex a lot as each ringgit that I charge earns 5 treats points. I also pay my bills using my Maybank Amex whenever possible such as my Streamyx, phone and DBKL bills. In addition, I make sure that I pay my bills and make purchases over the weekends so that I get to enjoy the 5% cash back rewards. The cash back is capped up to RM50 a month and that adds up to a savings of RM600 a year!
The 5 treats points given for every ringgit spent adds up pretty quickly too and with 2000 treat points, you can redeem a RM10 voucher from one of the retailers participating in the treats points program. So yeah, if you're like me, you'll be saving a huge amount of money if you make your credit cards work for you instead of what most people out there do, work hard to pay off their credit cards.
In case you belong to the latter group, you might want to think about going on a shopping diet and concentrating on paying off your credit card debt instead. You'll be surprised to see how paying twice the minimum payment is going to cut down not only on the length of time that it'll take you to finish paying your debt but also how much less interest you'd be paying the credit card company. There are many calculators out there to help you figure out how long it'll take you to pay off your debt. Click here for one such credit card calculator.
Another way you can save on paying interest on your credit cards is if you use the zero% balance transfer programmes that banks offer from time to time. You've got to be very disciplined though. No going out on ANOTHER shopping spree just because credit card A's balance is zero now. Remember, if you use your credit cards, make sure that you have the means to pay them off NOW. Don't think about paying for purchases that you make now with future income because what that's going to mean is that you'd have even less to spend when the future comes because you have to pay for a purchase that you made months ago. Wouldn't that be such a drag?
Use your credit cards wisely. Make them work for you. Don't work for them!
Let me tell you this: I didn't start out this way. I have had my fair share of credit card debt in the past which I worked very hard to pay down and off. I put a running tally of my credit card balance on my fridge. It gave me a constant reminder of why I should control my spending and at the end of each month, I would happily extract the amount that I paid and watch the outstanding balance reduce. For me, that was motivating.
Well, all that, I am proud to say, is in the past. Now, I make my credit cards work for me. I'm currently using my Maybank Amex a lot as each ringgit that I charge earns 5 treats points. I also pay my bills using my Maybank Amex whenever possible such as my Streamyx, phone and DBKL bills. In addition, I make sure that I pay my bills and make purchases over the weekends so that I get to enjoy the 5% cash back rewards. The cash back is capped up to RM50 a month and that adds up to a savings of RM600 a year!
The 5 treats points given for every ringgit spent adds up pretty quickly too and with 2000 treat points, you can redeem a RM10 voucher from one of the retailers participating in the treats points program. So yeah, if you're like me, you'll be saving a huge amount of money if you make your credit cards work for you instead of what most people out there do, work hard to pay off their credit cards.
In case you belong to the latter group, you might want to think about going on a shopping diet and concentrating on paying off your credit card debt instead. You'll be surprised to see how paying twice the minimum payment is going to cut down not only on the length of time that it'll take you to finish paying your debt but also how much less interest you'd be paying the credit card company. There are many calculators out there to help you figure out how long it'll take you to pay off your debt. Click here for one such credit card calculator.
Another way you can save on paying interest on your credit cards is if you use the zero% balance transfer programmes that banks offer from time to time. You've got to be very disciplined though. No going out on ANOTHER shopping spree just because credit card A's balance is zero now. Remember, if you use your credit cards, make sure that you have the means to pay them off NOW. Don't think about paying for purchases that you make now with future income because what that's going to mean is that you'd have even less to spend when the future comes because you have to pay for a purchase that you made months ago. Wouldn't that be such a drag?
Use your credit cards wisely. Make them work for you. Don't work for them!
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