Do you deal with your credit card debt all by yourself or through a credit counseling agency? As for me, I use AKPK (Agensi Kauseling dan Pengurusan Kredit) to manage my credit card debt. In fact, I have been in the debt management program since October 2008.

Read: AKPK Debt Management Program – Part 1.

Read: AKPK Debt Management Program Part 2.

Read: Back Then in 2008 and Now 2010 for AKPK Debt Management Program Application.

There can be various reasons why people choose to go for a credit counseling and debt management agency.

Some feel that they are not comfortable in dealing with credit card debt by themselves, so they let a credit counselor handle it for them. Some go for a credit counselling and debt management agency because they lack of time to do the research and evaluate options for credit card debt settlement. Others just want professional advice and hence they contact credit card debt management agency.

Whatever be the reason for using a credit counseling agency, a good credit card debt management agency would surely be of help.

However, it’s important that you select a good credit counseling and debt settlement agency.

Never Fall for Ads of Credit Card Debt Management Agencies That Promise to Wipe Off Your Debt Overnight!

No Credit Card Debt Settlement Agency or Anyone Else Can Do That!

You should select a credit counseling and debt settlement agency which has verifiable credentials or a company that you know has a good reputation. If some friends have been through this process previously, they might be able to recommend a reliable credit counseling and debt management  agency to you.

Once you find a reputable credit card debt management agency, be honest with your credit counselor about your debt or/and debt-related information no matter how bad your debt is.

It is important to note that no credit counseling and debt management agency will be able to help you if you are not ready to help yourself. So, follow the advice given by your credit card debt counselor and practice good spending habits.

Attn: Ms Yvonne Chia, the Group Managing Director/CEO and Ms Elaine Lee Yin Ling, the Manager. Address: Hong Leong Bank Berhad, Level 2, Tower A, PJ City Development, 15A, Jalan 219, Section 51A, 46100 Petaling Jaya.

Hi, I am Vedis Teh from Kuala Lumpur but currently residing in Ipoh, Perak.

I have been in AKPK debt management program since October 2008. Yes, it’s going to be 3 years since I enrolled in the debt repayment plan!

However, until today, I haven’t received any annual statement from your bank, that is Hong Leong Bank Berhad.

What I have received month after month is still the same credit card statement with late charges of RM50 being charged to it every month! Besides late charges of RM50, there is also this cash advance interest fee.

Isn’t it ridiculous? My monthly repayment to your bank is RM40, but there is a RM50 late charge fee and a few ringgit cash advance interest fee. In other words, my credit card balance is still the same as 3 years ago??

I have been told by AKPK that banks are to post annual statements to me.

Okay, maybe your bank prefers to send out monthly statement rather than yearly statement! But, aren’t you supposed to mail the correct monthly statement to me?

Public Bank, Citibank, HSBC and Standard & Chartered Bank are by far the only 3 banks that post annual statements to me. In other words, they keep me updated with the exact amount of balance I still owe them.

From the yearly statements these banks send out, there are NO late charge fees at all.

Besides your bank, RHB and MayBank do the same. I am going to write a similar letter to RHB and MayBank respectively in a few days’ time.

Disclaimer: I call myself Vedis the AKPK Debt Management Program Blogger, but I absolutely have no connection with the agency. Please do not mistake me for working in AKPK, though many have thought so. :-P

Three weeks ago, I was so excited to have reached RM7,100 for my E-Fund Account.

At that time, I was certain that I would reach my goal of RM10,000 within 3 months, that’s by the end of May.

But now, it won’t be reaching RM10,000 within 3 months or by the end of May as anticipated by me!

It will take longer as I just dug out RM1,210 for a new cpu and a regulator after my almost-5-year-old cpu finally stopped working three weeks ago.

My initial plan was to buy a laptop/notebook so that i) hubby could carry it to school to use, or ii) I could do my online work when traveling to KL or other places.

But then with a budget of RM1,500, the closest I could get was model like Acer Aspire 4253-E352G32L with 1.60GHz, Acer Aspire 4738Z-622G32L with 2.13GHz or Asus A42F-VX203 with 2.13GHz.

According to a colleague, I should get a laptop since I have already had another desktop computer in the house. My sister’s opinion is that I can do my online work in Kuala Lumpur if I have a portable notebook.

After weighing different opinions given by family members, friends and colleagues, hubby and I thought getting a new cpu would be the most practical option in terms of price and GHz.

Hubby’s buddy helped pick an Intel Dual Core E5700 3.0GHz cpu for us at RM1,100 and a regulator at RM110.

Maybe when my earnings of Amazon Associates Program brings me a steady income of USD $1,000 every month, I will reward myself with a notebook powered by Intel Core i7 Processor. ^.^

I am still very grateful to be placed in AKPK’s debt management program. Had (hubby and I) not been in the program, it wouldn’t have been possible for us to i) pay big expenses in cash or ii) bump up our emergency funds.

I did make a few 2010 New Year Resolutions. They were not 100% achieved, but I did do my best to reach at least 50% for most of the goals.

In year 2010, I vowed to beep up my big emergency fund to RM6,000, that was 3 months’ living expenses. Did it go down in a blaze of glory? Of course not. I hit 50% of the RM6,000 goal.

In year 2011, my resolution is to fully fund my big emergency fund with five months of expenses or RM10,000 in my family’s case. It’s quite an achievable amount because of the existing amount saved in bank plus 12 months’ rental equivalent to RM4,800 plus a small portion of hubby’s monthly salary.

To be frank, had hubby and I not been in AKPK debt management program, it wouldn’t have been possible to stash away extra money as big and small emergency fund savings!

Of course, changing to a smaller cc car that required no car loan did help save up more money. From paying RM820 a month to zero, how do I feel? Great! ^.^

Speaking of emergency fund accounts, I have 2. One is for big emergencies and another is for small emergencies. There were quite a few small emergencies like two car repairs and a heater that sucked out about RM1,500 from the small emergency account.

Due to the above unavoidable expenses, the balance in the small emergency account shrank to about RM3,000 as of 31.12.2010. My resolution for the small emergency fund account is to beep it up to RM10,000 in year 2011. It can be achieved provided there aren’t many unexpected expenses.

2011 New Year’s Resolution – Fully Funded Big and Small Emergency Funds (RM10,000 Each)

Did you make any financial New Year’s Resolutions this year? What are they?

How much has been spent on fixing the vacant house in Ipoh before it can be occupied by the tenants? Phew, RM590!

May 13th – Water and electricity departments – RM231
May 20th – Kitchen faucets and water pipes – RM70
May 27th – Fluorescent light replacements – RM119
May 28th – Leaking water tank and water pipes – RM170

Wait, RM590 is not the total yet! There are still leaking toilets and air-conditioner installation that will be done this coming Saturday or/and Sunday.

We estimate the leaking toilets (3 toilets now!) to cost between RM250 and RM400 and the air-conditioner installation between RM1,400 and RM1,550.

Since the air-conditioner can be paid in two installments, I don’t have to dig out all of my personal savings. Boohoo, there will be a dent in my personal savings!

Anyway, I think it’s worth paying for all the fixes and repairs since:

a) The house will not be left vacant to rot again;

b) There will be monthly rental of RM400 to cover some of the home loan installment or to be saved as emergency fund;

c) It’s easier to sell the house in future, either to the tenants or neighbors whose family members or relatives are interested.

As a matter of fact, a neighbor who lives two houses away came to have a look of the inside of our house when hubby and I were in the house last Saturday. He said his brother was also thinking of buying one nearby his.

Thanks to new developments around my housing area that the price for my 22 x 75 double-storey house has gone up to nearly RM150,000 these few years.

A friend who is a pro construction worker said we can sell our house in Ipoh easily if we are willing to sell it at RM135,000. Wow, it’s for sure hubby and I will sell the house and be mortgage free if there is a buyer now!

At this point of my life, I am so grateful to God for leading me and hubby back on financial track slowly and steadily.

First, being approved of the AKPK debt management program applications. Next, steady online income from me and full time teaching income from hubby. Then, having extra money to be saved as emergency fund. Later, renting out the house in Ipoh.

All this came one by one. This made me realize that, “When I am ready to make a change financially, God will help.“

Having read Adino’s 50 Great Outdoor Wedding Ideas and Themes a few days ago, I feel like writing something about wedding and funeral today.

It’s quite similar to the comment I left at Adino’s blog, just that this is a looooooonger version.

You see, I am a person who is very against wedding ceremonies, wedding dinners and wedding parties. If you have been reading my blog, you may have come across blog posts mentioning how much I abhor attending wedding receptions and dinners.

There are a few whys I hate attending wedding dinners. First off, it’s very time-consuming. I had had a few bad experiences when I was still living in KL that made me decide that it’s enough.

There was once that a wedding dinner started at 9.30 p.m. I arrived before 7 p.m. and I had to wait until 9.30 p.m. for the dinner to start. At that time, I was pissed off, thinking why I would let people waste ‘my precious time’? You know, it’s like ‘using your own time to do the stuff you don’t like‘.

Ya, now I am at the stage of ‘spending my time doing the stuff I like’. Are you ‘using your own time to do the stuff you don’t like’ or are you ‘letting others use your time to do the stuff you dislike’?

Coming back to the wedding I mentioned just now, it’s only a not-close-at-all colleague’s wedding dinner. I don’t even remember his name now!

So, I would only attend wedding dinners of those whom I am very, very close to.

Secondly, it’s money-consuming. A wedding money gift costs between RM60 and RM200, depending how close you are to the bride/bridegroom or the parents of both and also how much ‘face’ you want to give.

It’s fine if there is only a wedding dinner to attend once a month or every few months. But it’s not okay when there are 5 or 6 dinners in a month during peak season! Well, you do the calculations.

To me, a credit-card-debt woman who is now in AKPK debt management program, it’s a financial burden.

Time flies, right? Christmas and Chinese New Year was like yesterday only and now it’s March the 4th.

After spending 3D 2N in Kuala Lumpur, I came home yesterday afternoon. It’s a rewarding trip although I had to attend a relative’s funeral on the first night.

I enjoyed my second day in KL the most. Right after breakfast, my younger sister sent me to her beautician for a 2-hour facial, eye and neck treatment. The treatment fee was charged into my sister account, so it’s a free treatment for me.

After the facial treatment, my sister and I had lunch at a nearby coffee shop. I tried to pay for it, but my sister was faster than I was when it came to pulling out money from the purse. So, free lunch for me.

At night, she brought along her two sons and together we went to the Jusco at Setiawangsa. We had our dinner at Sushi King. Ouch, more than RM90 for 4 of us! Of course, my younger sister footed the bill, again.

Each time I try to pay the bill, she will insist on paying. After a few times, I just let her pay without pulling out my purse at all.

One of the reasons why my younger sister insists on paying is that I am the guest when I am in Kuala Lumpur. I am a guest, so she will pay. Similarly, I will foot the bill when she comes visiting me in Ipoh.

I think another reason is that she takes my visit as an opportunity to spend money. You see, she works very hard and long hours in the shops with her husband. Three shops in a row! They own one and rents the other two shops for their motor biz.

She works from 9 a.m. till 8.30 p.m. every day, except Sunday. In between, she has to go to banks and fetch her kids to and fro schools and tuition centers. Day in and day out, …

She admits that she has money, but she has no time to rest or go traveling. When she finally squeezes out a few days for a short trip, her husband will rant a bit. Sometimes she is fed up with her never ending work routines and hubby who only loves working.

Wow, isn’t it good to have a hubby who enjoys his work very much? My sister is very lucky to have such as a workaholic hubby. Similarly, my brother-in-law is fortunate to have my sister who is good at handling the money, finance, management and customer service of the company.

Due to the workaholic hubby and her acumen in business that they are able to buy another house which is of RM400,000 in this bad economy. Phew, a RM400,000 corner-lot double storey house!

Coming back to my trip in Kuala Lumpur, I spent very little, RM37 on bus fare and less than RM20 on foods and drinks!

An increase of RM1,500 in two months! Amazing, right? This has got to do with a sudden increase in the number of online tasks in January. This doesn’t always happen though I hope it will.

Has my hubby found out my personal saving? Well, I am pretty sure he knows I am stashing away money. Just that he doesn’t know the exact amount.

I still need RM500 to reach my RM3,500 saving goal. I am thinking of transferring RM500 from hubby’s bonus and Ang Pao to my saving so that it hits RM3,500.

Speaking of hubby’s bonus, both of us are a bit disappointed with his half month’s bonus. We thought he could get a one-month bonus as said/mentioned by the principal when he was interviewing hubby.

Anyway, hubby only started his work in July 2009, so it’s actually fair to get half month’s bonus, right? Oh, not to forget that hubby got a RM200 salary raise starting January 2010!

Besides, there is still Ang Pao or money gift. According to hubby’s colleagues, it’s going to be given out on Friday, that’s tomorrow! Hopefully it’s between RM500 and RM1,000.

Be grateful, you AKPK DMP blogger! Count your blessings, please! Do you know that you and your hubby:

1. are now both in AKPK free debt management program that helps you pay down credit card debt with lower monthly repayments of RM320 and RM360 respectively;

2. have a dual income between RM4,600 and RM5,000 every month;

3. have an emergency fund of RM3,000 in the saving account;

4. have money to pay auto and home loan installments, utility bills and flat rental in time;

5. have extra money to spend on clothes and personal supplies;

6. are healthy and strong;

7. …

Thank You God for what I am and will be having. Wuahaha!

Question: My wife and I know we should have an emergency savings fund, but with one income we have nothing left to save after paying expenses.

But I’ve been thinking of a way to deal with this problem. We charge about $2,000 in monthly expenses to our credit cards, which we then pay in full each month.

My idea is this: Instead of paying off the cards every month, I’ll make only the minimum required payment and save the rest. Once I’ve accumulated a decent emergency fund, I would then begin paying down the cards. Do you think this is a good strategy? — N.G., California

Doesn’t this sound familiar to many people? It definitely sounds familiar to me.

There was once upon a time in 2007 that hubby and I were living on one income. Life was tough then because there’s so little income in hand, yet there were so many bills like car and home loan installments, term loans, and as many as 15 credit card payments waiting to be paid every month!

It’s very difficult to save for emergency fund after paying all the expenses because there was literally no money left at all!

But since hubby and I enrolled in AKPK debt management program and hubby started his full time teaching job, we have been able to save money as emergency fund.

If you are thinking of paying the minimum credit card payments and saving the rest as emergency fund until you have accumulated a decent amount of emergency fund to paying down the credit cards, well, it may/might never come true.

Financial experts say so. And I say so; I did what the reader above thought of doing and it didn’t work for me. It’s either you find extra money/income or cut down on expenses or do both if you want to save money as emergency fund.

I agree with Walter Updegrave, the author of the article of Big No-No for Building Emergency Savings that, “If you can’t save today because you have no money left after paying your expenses, how are you going to pay those expenses, plus come up with an extra $xxx a month to pay down the credit card balance you racked up to accumulate your emergency fund?”

I also concur with him that it’s more practical to spend less than you make or cut down your expenses to save money.

Well, the reality is that there is only one way to save — and that’s to spend less than you make. There are a number of ways to do that. You can go the “cut the latte” route and avoid relatively small daily expenditures that add up. You can create a budget and then go over it line by line, looking for specific areas to squeeze. You can try two techniques that I’ve advocated in the past, focusing on big-ticket items or employing strategies that can effectively fool you into being a better saver. Whatever works for you. But one way or another, you’re going to have to find a way to pare your spending.

… But I also know that borrowing to save is an oxymoronic concept that’s more likely to create problems than solve them.

In the survey conducted between Aug 21 and Sept 23 last year, 69% of Malaysians said they were extremely concerned about the cost of living expenses while 62% and 59% were worried about salary changes and personal debt respectively.

“Malaysians were less worried about the value of their retirement fund and portfolio, and fluctuating interest rates,” the company said in a statement here yesterday.

However, 25% of those surveyed also said they were more confident about their personal financial situation compared to six months earlier although 52% felt there would be no change.

Only 23% indicated they were less confident than earlier.

Sixty-six per cent of Malaysians also said they were more concerned about the impact of the global financial crisis on the local economy.

The survey involved 5,520 respondents aged between 18 and 65 years, of whom 500 were from Malaysia.

The rest were from Australia, China, Hong Kong, India, Indonesia, Japan, Korea, New Zealand, Singapore and Taiwan.

Visa country manager Stuart Tomlinson said Malaysians were being practical during the current economic climate by focusing on managing their concerns, providing themselves with a level of security and peace of mind.

“For Malaysians, potential changes in salary levels are also of concern,” he said, adding that across the region, consumers were looking to see how they could manage their expenses, savings and job security, rather than macro-economic conditions such as exchange and interest rates.

As a credit-card-debt woman who has been in AKPK debt management program since October 2008, I no longer need to worry about my credit card and loan debts. Phew, no more harassing phone calls and legal notices from banks!