Category Archives: Cash Is King

Don’t Want To Enroll In AKPK DMP? Then, Start Managing Your Debt Now!

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Posted by Vedis the DMP Blogger on January 9, 2010 – 8:50 am
Filed under AKPK Debt Management Plan, Auto Installment Loans, Cash Is King, Credit Card Debts, Credit Cards, Debt Management Tips

You have a debt problem, but it’s not serious enough to get you into AKPK debt management program yet? Lucky you! If you don’t want to resort to enrolling in AKPK’s DMP or declaring bankruptcy in future, then make sure you start managing your personal debt now.

Here is Raymond Roy Tiruchelvam’s article on How to Manage Personal Debt.

THE “easier said than done” phrase latches on to this topic like ants to sugar. While getting into debt is made easier today with the many innovative marketing plans undertaken by financial institutions, getting out of if, leaves much to be pondered.

For those who do not see the light at the end of the tunnel, Bank Negara has introduced AKPK or Credit Counselling and Debt Management Agency. I am assuming a single source of funds being financial institutions, and not “ah-longs” and other unconventional sources.

There is actually one step to be undertaken prior to managing your debt, which is managing your cash flow. It does not mean that if one is a millionaire, there is no need for debt management … well perhaps there is no need, since the ability to source for debt is high, but everyone will need to manage their cash flow, let it be millionaires or paupers.

Let’s look at some steps that we can take to ensure that we are able to manage our personal debts so that we do not go into the “PN4” or “PN17” status (which for companies implies a financially distressed state).

Let’s start with liquid debts, credit card and car loans. For the former, never follow the minimum payment requirement of the bank, which is 5% of outstanding sum. The reality is that it does not diminish in 20 months (5% X 20 months = 100%) – which is the general misconception.

Instead, spread the payment over a reasonable payable period. For example, if you purchase a personal computer for RM1,500 perhaps, you want to make a RM300 monthly payment over 5 months, rather than pay RM75 in the first month, then RM71 for the second month and so on (assuming one follows the minimum 5% payment, excluding interest charge).

As a matter of fact, if one were to purely pay the 5% minimum payment, do you know that it will take 50 years for the sum to trickle down to RM100. And mind you, even with that, the debt won’t be fully settled. Read More »

Are You Worried About Your Credit Card Debt?

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Posted by Vedis the DMP Blogger on September 5, 2009 – 10:43 pm
Filed under AKPK Debt Management Plan, Cash Is King, Credit Card Debts, Credit Cards, Debt Consolidation Loans, Debt Management Programs, Debt Management Tips, Debt Settlement Plans, Free Debt Reduction Tips, Saving Money

DMP For Credit Card DebtAm I worried about my credit card debt now? No, I am not. But I used to be very worried and stressed out about it before I enrolled in a free debt management program called AKPK debt management programme (DMP).

What about you? Are you worried about your credit card debt?

You should be if your credit card debt has spiraled out of control; you pay more than 15% of your monthly income to your credit card bills or/and borrow cash from one credit card to pay another.

You are not the only one who is dealing with credit card debt nowadays. In fact, almost 40% of credit card holders are in the same predicament!

So what should you do to avoid the need of getting help from debt relief options such as debt consolidation, debt management program, or debt settlement and worst of all filing for bankruptcy?

Start doing credit card debt management to help yourself get out of debt as fast as possible!

Most financial experts will advise you to stop using your credit cards. Quit using credit cards is to prevent you from adding new debt to your existing outstanding balance.

If you have more than one credit card, pay the minimum payment on them all. Then, pay the most to the credit card with the highest APR. Once the card with the highest APR is paid off, keep paying the minimum payment to the rest of your cards and pay the most to the next highest APR. Do so until all the credit cards are paid off.

Another way to help you is try balance transfer deals that offer 0% interest free period for 6, 9 or 12 months to save some money.

Credit cards are convenient, but you don’t have to use them all the time and put everything from groceries to petrol to night’s-out on them. Instead of using credit cards, cultivate the habit of using cash to help yourself curb your spending habits and get into more credit card debt.

If you are really concerned about your credit card debt, start doing debt reduction before you end up resorting to debt consolidation, debt management plan, debt settlement or bankruptcy.

How A Debt Management Program Blogger Saves Some Extra Cash Through Minor Changes

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Posted by Vedis the DMP Blogger on August 30, 2009 – 2:23 pm
Filed under AKPK Debt Management Plan, Cash Is King, Saving Money

How A Debt Management Program Blogger Saves Extra CashAfter the recent 6D 5N trip in the city, I must admit that I am blown away by the way my sisters and other family members spend their money.

Don’t get me wrong. They don’t spend their money with credit cards. No. Instead, they use cash all the time.

They spend their money as if they have lots of cash, as if it’s easy to make money, as if the bad economy has not affected them at all, as if …

Well, they don’t act as if. The truth is they really do have lots of cash; they don’t have the habits of swiping credit cards.

To them, making money is easy; their hardware stores and motor shops are still making good profits despite bad economy.

Their way of spending money makes me realize the power of using cash and the goodness of not being in credit card debts or other debts.

Serve me right! I only realize the power of cash after getting in deep debt trouble and being in AKPK debt management program (DMP).

Since in the DMP, I have come to love using cash and saving some extra cash by following easy money-saving changes.

If you are also on tight budget and would like to save some extra cash, try out some of these easy money-saving changes; they are actually minor changes to the way you use products and items in your everyday life.

1. Buy the Cheapest Hand Soap. Always buy the cheapest hand soap you can find. The quality doesn’t necessarily go up with the price and you can use it in place of bath soap.

2. Fully Use the Whole Product. Ask any thrifty mom you know and you’ll surely hear this money saving tip of turning bottles upside down and draining to get the last bit from them. :-)

Others are tearing open sugar and flour packets to get everything; squeezing or cutting open tubes to use up all before opening new ones. You’ll be amazed at how much there really is left!

3. Never Use More Than You Need. Just because it is stated on the box that you need a full cup of detergent, it doesn’t mean that you really pour a full cup.

As hubby and I don’t sweat a lot, there is really no need to use a full cup as what the manufacturer says. Instead, half a measure of laundry detergent is usually enough.

4. Use Some of the Things in Your House Creatively. Instead of spending money on the fancy floor cleaners, try using ammonia that also does a great job. Use plain water in between times.

If your furniture needs some polishing, mix equal parts of white vinegar and vegetable oil and rub on the furniture. Buff with a cloth until it shines.

Sure, they are minor changes, but they do add up in the long run and put some extra cash into your pocket throughout the year!

Use Cash If You Don't Want To End Up In AKPK Debt Management Program (DMP)

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Posted by Vedis the DMP Blogger on August 29, 2009 – 12:59 pm
Filed under AKPK Debt Management Plan, Cash Is King, Credit Card Debts, Debt Management Programs, Saving Money, Spending / Expenses

Hubby and I were in the city for 6D 5N. While hubby was attending a 3D 2N seminar, I was staying at my uncle’s place.

Overall, we spent less than RM100 on food, shampoo, toothpaste, parking fees and discounted trousers during the trip. Unbelievable, right?

You see, hubby’s meals and seminar, petrol and accommodation fees were all fully paid by his school while my accommodation and meals at my uncle’s house were free.

Whenever I went out with my uncle’s family or my sisters, they were the ones who insisted on making payments.

My younger sister who knew my financial woes better kept buying foods and clothes for me. Of course, she paid cash. I am happy that she loves using cash, not credit cards.

I only realize the power of using cash after I was so deeply in credit card debt and had to sign up with a free debt management program called AKPK debt management programme (DMP) in my country.

I am grateful that I was approved of the debt repayment application last October and given a chance to bring my financial ruin back on track without having to declare bankruptcy.

Use cash, if you don’t want to end up in a debt management program to help you get out of credit card debt. :-)

Use cash so that you don’t have to pay high interest rates, late payment fees, over-limit charges and other miscellaneous fees. And most important of all, you don’t have to pay interest on the interest charges you owe!

Being In AKPK Debt Management Program (DMP) Means You No Longer Own A Credit Card

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Posted by Vedis the DMP Blogger on August 24, 2009 – 12:06 pm
Filed under AKPK Debt Management Plan, Cash Is King, Credit Card Debts, Credit Cards

In Debt Management Program Means No More Credit CardI am a credit card debt woman who no longer owns a credit card. Of course, I am still loaded with credit card debt that needs a few years to pay off through AKPK free debt management program (DMP). :-)

It’s difficult to find an adult who doesn’t own a credit card these days, isn’t it? Credit cards, especially to working people and those who live very busy lives, are ultimate financial saviors.

Well, credit cards used to be my savior too when I needed cash or a particular item urgently. I loved the glamor and the convenience credit cards brought to me that I got myself 7 credit cards and ultimately loads of credit card debt.

It’s the convenience of carrying credit cards compared to carrying cash when making purchases that triggered my thirst for material things, led me into the temptation of buying stuff that I didn’t really need and eventually got me into the unmanageable credit card debt.

Having a credit card is a big responsibility. If you don’t use it carefully, you may owe more than you can repay and be suffocated by high interest rates, late payment fees, over the limit fees, cash advance charges, retail interest fees and miscellaneous fees that add exponentially to your existing outstanding balance.