Paying off credit card bills is the best investment you can make

If you have credit card debts on hand, the best investment you can make is to pay off the debts. Guaranteed!

The typical annual interest rate for credit cards is around 20%. If you pay off this high-interest debt, it is as good as making a sure-win investment gain of 20%. Even Warren Buffett cannot be guarantee you such a performance.

If you prefer to let the credit card debts to rollover, please go back to school and study compound interest.  At 20% compound interest, even a tiny amount of debt can wreak severe damage to your pocket. Don't believe? Use a spreadsheet and calculate the amounts you will have to pay over the years. This is the best way to appreciate the power of compounding.

A good understanding of compound interest has convinced me to avoid all high-interest loans like unsecured personal credit lines and credit card debts. On the other hand, I have been encouraged to save and invest hard to reap the power of compounding to my favor.

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时下的年轻人：19岁开始贷款念书，26岁已经负债累累

看了一名26岁的大马年轻博客卡维兰（Kavilan Nakaswaram）所写的文章后，你可能会觉得这个预算案其实根本没有点出时下年轻人的困境。

时下的年轻人：19岁开始贷款念书，26岁已经负债累累

卡维兰在念完中五之后就进入大学，19岁开始贷款念书，毕业时已经是22岁，在工作了4年后，卡维兰表示自己还是深处债务之中。

“从19岁开始我就欠债了，我相信很多大马青年也和我一样，为了就读高等教育学习被逼贷款。我来自一个中等收入的家庭，开着的是一辆二手的国产车，每个月我必须缴付保险费，以确保当意外发生时至少我可以死在一个温暖的床上。”

“最 精彩的部分来了，我打算在几年后结婚，所以我需要更多钱，成了家之后我又需要买一间房子来让我的妻子和小孩住。问题是，我并不能在巴生河流域一带找到一间 便宜的房子，因为这里的房价都超过35万令吉。假设我弄到了5万令吉来付房贷头期，但是我仍然需要在未来30年里偿还30万令吉的贷款。这还不包括汽车和 国家高等教育基金局（PTPTN）的贷款。最后，我变成了一个负债累累的人。”

为了满足基本需求，不得不贷款

“这是一个进步国家的青年应该有的命运吗？我深信许多大马的年轻人都面对跟我一样的处境，20岁之前就负债，50岁之后也未必能偿还所有贷款，这不仅让我怀疑我有生之年是否能够好好地享受自己的劳动果实，还是必须把这些辛苦赚来的钱都还给银行呢？”

“政府也许可以计算拥有房子和车子的人数来作为人民成功的衡量指数，但是他们是否有将‘快乐’纳入数据里计算呢？我觉得这些债务让我很压力，我并不觉得快乐，最重要的是我不认为自己可以逃离这一切。”

“让 我们从头开始分析吧。很多人都无法进入国立大学，于是他们必须借贷来继续在私立大专深造，这让他们年纪轻轻就负债了。如果他们选择不继续念书的话，他们的 工作机会和待遇将会非常低，这是一个恶性循环。至于房屋，我现在赚的钱是我父亲在同样年纪的时候赚的两倍，但是我却依然无法购置属于自己的房产。我父亲在 30年前以11%的银行利息来买房子，今天的银行利息虽然是4%而已，但是我却没有能力购买房子。为什么呢？”卡维兰表示，这是因为房屋价格不断上涨。

生活的素质在哪里？

“有 多少人是没有债务的？我说的不是卡债或那些为了满足物质需求而欠下的钱，我说的是人的基本需求：教育、房屋、医药和交通。生活就是生存，有谁可以大声地说 自己不是为了生存而工作？如果你须长期塞车、努力赚钱来请帮佣为你打扫房子，而你和另一半都必须工作的话，你的生活素质在哪里呢？”

“我们有多少时间可以坐下来和爱人好好地聊天？事实上，我们被困在这个循环过程里了。不要说我的文章没有数据的支持，我不需要数据来告诉我现在的生活是怎么了。我们是刚刚开始生活的年轻人，但是压力已经把我们压得喘不过气来了。

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How Credit Card Work?(2)

（转载自http://www.citibank.com.my)
Finance charges can be calculated in different ways. Your account statement describes the method that applies to you. In general, finance charges are based on one of the methods below.

Average daily balance
Many credit card companies use this method. The credit card company totals your balance each day during the billing period, adds these daily balances together and divides by the number of days in the period.

Ending balance
The credit card company may use your ending balance for the billing period. If so, any purchases and payments during the billing period are included.

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How Credit Card Work(1)

(转载自http://www.citibank.com.my）

Your minimum payment is not the same as your account balance. If you assume the minimum is all you need to pay each month, you could owe far more in finance charges than you budgeted.

Account balance
This is your total accumulated balance as of the statement date. It includes any unpaid balance from the previous month, new purchases since the closing date of your last statement, and any cash advances you may have taken. The credit card company will also add in any other charges such as an annual fee, finance charges and other fees.

Minimum payment
This is the smallest amount of your balance you can pay by the due date and still meet the terms of your card agreement. The minimum is often a specific fraction of the balance, such as 5% of the outstanding balance. By always putting at least the minimum payment due on your credit card, you avoid paying late fees.

Keep in mind that the minimum payment is not the only amount you owe. You will be charged interest on the portion of the balance that you don't pay by the due date.

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10 Tips for Good Credit

(转载自http://www.citibank.com.my/）

After you've determined how much credit you can afford, follow these steps to manage it well:

• Know your loan's credit terms or the terms of your credit card agreement.
• Understand the terms of the agreement before you accept a loan or credit card.
• Set aside money each payday for emergencies.
• Set a monthly limit for charges and stick to it.
• Shop as carefully with credit as you do with cash.
• Don't take on more monthly credit payments than you can afford.
• Pay bills promptly to avoid penalties and to keep finance charges low.
• If you charge day-to-day expenses, make sure you pay down enough monthly to keep your debt or credit card from ballooning.
• Keep credit card information (including phone number of issuer) in a safe place in case your cards are lost or stolen.
• Keep copies of sales slips and compare charges when bills arrive. If there's a mistake, call your credit card company right away.

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不要被债务纏住一生

现在很多年轻人刚出来社会工作就背了一身的债务,成了典型的房奴、車奴、卡奴,还有贷学金PTPTN。试想想一个工资RM2000左右的社会新鲜人如何负担得起呢?

在马来西亚生活工作,由于公共交通系统不理想,车祸发生率有很频密,没有汽车代步,真的很不方便.二手车又常出毛病,很多人干脆贷款购买新车.

接着,遇到心仪的对象,开始恋爱了,到了谈婚论嫁的时候了.新人结婚哪里可以没有属于自己的小天地,于是开始物色置产了.买了属于自己的屋子,当然要好好的装修一番.接着就用了信用卡透支买了昂贵的家私.于是,每月的薪水都用来支付债务了,成了银行的忠实员工.接着,有了小孩就要开始为教育费而操心.一辈子战战兢兢地工作,惟恐一旦失去工作,日子就会变得非常难过.

想好你是否具备财务能力再买房，没能力买房就成了房奴。车奴更甚，车子是持续消费(有些人车子还未供完,就换新车)。

改变生活要从小钱开始还，还卡－－还车－－还房－－存钱－－投资。