"TAK NAK" to Plastic Debts » Meshio.com- a Malaysia Personal Finance Blog

“TAK NAK” to Plastic Debts

What did I told you? Even the government can’t do anything about it. Come to think about it, do they even bother?

“Although the financial institutions are seen as desperate and eager to offer credit cards to the public, it does not mean one must take it,” she said adding that those with many credit cards must be disciplined and not spend more than they could afford.

“The public must be disciplined and reject offers of credit cards if they do not need one.

“It is difficult for the Government to intervene and stop banks from offering credit cards because it is legal and part of a bank’s activities.”

I don’t think discipline is going to amount to much in the battle to reduce credit card bankruptcies and the emotional stress it brings to the victim.

The public needs to be educated, and it should be part of the Bank Negara’s policy to ensure that they do their part in the education process. I don’t see any phamplets or leaflets in any banks that is attempting to address this serious issue. Of course, the banks are not going to do anything about it, it’s their bloody gold mine!

And what do you mean that is part of the legalities? Which means the government won’t step in to ensure that the application of the card is monitored much more closely and put in more preventive measures.

We already have the Credit Counselling And Debt Management Agency (CCDMA) in place to fight the fire. However, that’s just a fire-fighting strategy. We should also implement strategies to keep the fire from spreading.

Here are a few things that they can do:-

1) For first time applicants, maybe a credit limit which is equivalent to their current salary is much more realistic.

2) Applicants must have at least 10% of their credit limit in Fixed Deposit at all times.

3) Banks must also be monitored closely in their dealings with consumers. Some form of customer financial health must be in place so that “plastics” are issued accordingly.

4) Bank Negara must actively educate the public on the importance of clearing off their credits, since credit card interest rate is amazingly high compared to other form of loans (excluding Ah Longs). That’s why the banks love it in the first place.

5) Applicants must have at least 2 years working experience.

Being legal doesn’t mean you can’t do anything about it, especially when it comes to protecting the general public.

Well, as a last resort, I urge you my dear readers, to ensure that you understand very fully how the plastic works and ensure that you will not be tempted by all the promotions and marketing gimmicks these plastic companies are shoving down your throat.

There’s NO FREE LUNCH!

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