Having problems with your credit cards?

Can’t make up your mind which is the best home loan available out there?

Fear not, Bank Negara will be setting up an agency to give consultations to the public on personal debt management- The Credit Counselling and Debt Management Agency (CCDMA).

There’s one reason which I feel contributes to credit card problems in our country. The banks are just too eager to pump up their number of subscribers and hence reducing the qualification level of the applicants. What I meant by qualification is the level of income and responsibilities, which directly affects the usage of the cards.

Too many fresh graduates who just took up their first job are given this amazing power to spend and consume that they do not realize how the loan interest will slowly devour them later on.

I totally agree that it’s important these “hyper-consumers” are being educated on the danger of the plastic they are keeping in the wallets.

Via The Star Online>

CCDMA would not provide financing but would offer assistance and advice on managing credit to individuals.This includes mortgages, hire purchase, credit and charge cards as well as personal loans.

Outstanding household loans grew 15.1% to RM304.4bil last year, and accounted for 54.5% of outstanding loan portfolio in the banking system.

Borrowings by household from the banking system increased to 61.5% of the country?? gross domestic product (GDP) as at end-2005.

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