Am I considered lucky to be able to escape from the new RM50 service tax a year on every principal credit card and charge card since I am now in AKPK debt management programme? So is hubby

Imagine how much annual service tax hubby and I had to pay if we still had the 15 credit cards!! 15 principal credit cards from 6 banks. Phew, it’s RM750!

According to financial analysts, it is predicted that at least 30% of the holders of 11 million cards in circulation who have more than one card will have to pay RM100 every year.

You know, the applications for new credit cards dropped by 80% following the Government’s announcement of the service tax starting 2010.

Don’t you think this new imposition is good to those who are thinking of applying credit cards? It scares them off and thus they carry no credit cards. No credit cards mean no credit card debts, right?

When there are no credit card debts, people will have no reason to turn to non-performing loans, short-term loans, personal loans, debt consolidation loans, AKPK debt management programs, or bankruptcy easily.

It’s also good to those of you who have stacks of credit cards; you are forced to reduce the number of cards you own. Having fewer credit cards means you have to cut down on spending, retail purchases and impulse buying.

Also, you get to learn to use cash and debit cards. As a credit-card-debt woman who is in AKPK’s debt management plan, I must say that I love using cash and debit card now.

I have had two debit cards, Public Bank Visa debit card and Tune Money Visa debit card. Both cards are not used for retail purchases. Noop. They are only used for collecting PayPal money from my online income.

Since PayPal has now allowed Malaysians to link their PayPal accounts to their Malaysian banks or overseas banks operating in Malaysia, I think I can totally stop using and renewing my Tune Money Visa debit card.

As for the Public Bank Visa debit card, I will keep on using as a backup for PayPal fund withdrawals.

“Why are you in deep credit card debt?” Is it because of excess spending that causes you to default on your credit card payments or is it due to the pay cut or job loss brought about by recessive times?

As for me, my credit card debt (hubby and mine) was caused by excess spending and insufficient income. There was always not enough income (from both of us) to pay the credit card payments, daily expenses, car and home loan instalments.

Whenever there was insufficient money to pay the minimum credit card payments, withdrawing cash advance from credit cards was always the solution to settle the payments.

As a result, more credit card debt incurred due to cash advances, cash advance fees, late payment charges and other miscellaneous fees imposed by banks.

Just as I thought filing for bankruptcy was the only way out to get rid of staggering credit card debt and harassing phone calls and warning letters from the creditors and credit card companies, AKPK saved me (and hubby) from declaring bankruptcy.

Regardless of why you are in debt, you need to know that there is a way out without resorting to bankruptcy. You can get out of your situation through AKPK’s debt management plan if you are a Malaysian.

The AKPK’s debt management program is individually designed to provide you with a unique solution for your financial situation; it keeps you from having to take out a debt consolidation loan or file for bankruptcy.

If you think that a debt management program is right for you, it is important to make sure that you know perfectly well the pros and cons of enrolling in a DMP.

AKPK’s debt management plan is a way out to get rid of credit card debt without filing for bankruptcy for me, but it does not necessarily suit you.

You yourself have to attend the credit counseling briefing to know the ins and outs or the pros and cons of the debt management programme before making a decision.

Speaking of reasons why I enrolled in AKPK debt management program (DMP), I have cited quite a few reasons whenever I mention my AKPK DMP.

I am sure they are of the same reasons given by others who were or are in debt management plans.

Let me share with you top 10 reasons why people with credit card and personal debts, including myself, have turned to debt management programmes to pay off the debt.

May the reasons stated below help you make up your mind whether a debt management program is the right debt relief option for you.

1. You have tried out self repayment plan but it doesn’t help much to decrease your debt balance. I did try out self credit card debt reduction from April 2007 to August 2008 and managed to bring down my credit card debt from RM63,809 to RM40,344. But since then, the amount of debt balance didn’t decrease much.

2. You are so deeply in financial crisis that you need to get rid of your debt before any legal proceeding such as being sued for bankruptcy starts. Although I was able to bring down my credit card debt through self debt reduction plan, I still decided to turn to AKPK debt management program.

Why? Well, I couldn’t bear with the late payment fees and over-limit charges imposed by banks anymore; the amount of late payment fees and over the limit charges was so much that it made my efforts of paying down my credit card debt a waste of my hard-earned money.

3. You don’t want to be disturbed by irritating and harassing phone calls from debt collection agencies. Ask anyone who has been behind their payments or has missed a few credit card payments, they will tell you how stressful and depressing it is when it comes to handling calls from banks and collection agencies, and also piles of notices and warning letters.

4. You would like to lower the interest rates on your outstanding balances so that you are able to save money. From 18% interest rates to 6% or 7% interest rates, I must say that it’s a huge saving.

5. You don’t want to pay extra charges due to late payment. One day in August 2008, I told hubby that I had had enough of paying the never-ending late payment and over-limit fees charged by banks that brought us to nowhere, but increasing credit card debt!

6. When your budget is too tight, a debt management plan allows you to lower your monthly payment. Due to economy downturn, hubby’s meager income and my decreasing online income made us opt for lower payments for our credit cards.

Previously hubby and I had to pay more than RM2,500 for the credit card minimum payments. But with AKPK’s debt repayment plans, we are allowed to pay much much lower payments to our creditors. My DMP is RM320 per month while hubby’s DMP is RM360.

7. You have no idea about managing your own debt at all and you need proper guidance.

8. You have multiple bills and you can’t manage them efficiently.

9. You find that you need a professional credit counselor to assist you to work out a budget based on your income and commitment.

10. Your credit score is in a bad shape and there is a need for you to rebuild it through a proper debt management program.

Congratulations on getting your very first credit card! It’s my hope that you can use your credit card wisely to avoid getting into deep credit card debt and having to resort to debt consolidation, debt management program, debt settlement plan or bankruptcy.

If I had been careful when it came to using credit cards, I wouldn’t have gotten myself into deep credit card debt and enrolled in a free debt management program known as AKPK debt management program to help me lower my monthly payments from more than RM1,500 to RM320, reduce interest rates from 18% to 6% or 7%, waive late payments and over-limit charges.

Credit cards, when used in moderation, could be helpful in managing your finances. But splurging through the use of credit cards is almost financial suicide.

To prevent you from acquiring credit card debt that leads you to financial death, let me share with you how you can manage the way you use your credit card.

1. Prioritize Your NEEDS Before Your WANTS. Buying big ticket items that you don’t really need might give you that instant gratification that impulsive buyers are addicted to. But that temporary high would eventually turn to long-term down feeling due to your high-interest added credit card debt.

Imagine after 15 months of owning the 42″ Plasma TV, you are still paying down the amount owed, its interest charges and interest on the owed interest charges! So depressing!

2. Never Go Over Your Credit Limit. In order to be able to manage your credit card payment, never go overboard when it comes to your credit limit. If it’s possible, just use about two-thirds of your limit.

3. Keep the Statement of Your Credit Card Account. For easy reference in future, keep a record of all your credit card transactions.

Always spend some time comparing the list of your purchase for the month with the statement to prevent being charged inaccurately. If your list and the statement of account do not match, report this to your bank.

Self-control is still the best way to prevent getting piled up debt. I have been there before and I tell you, it’s no fun having accumulated debt.

You know how suffocated and stressful I was before I signed up with a free debt management program? My piled up debt was actually caused by late payment fees, over-limit charges and miscellaneous fee charges.

Am 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.

Do you know that credit card debt is a major cause of over one million bankruptcies each year? I almost opted for bankruptcy when my credit card debt was out of control due to high interest rates, late payment fees, over-limit fees, cash advance fees, retail interest charges and other miscellaneous fees imposed by banks and creditors.

Had it not been the option of enrolling in a free debt management program, I would have filed for bankruptcy in 2008.

If you are a new credit card holder, you need to keep in mind that the real cause of your financial mess is you. Make sure you don’t put your blame on the credit cards and the credit card companies when your credit card debt is out of control.

One shopping spree does not usually cause high debt. It is usually a pattern that consists of gradually increasing purchases that add up to a large debt.

It’s fortunate that you are at the stage where your credit card debt is still under control. To make sure that you do not get into deep debt trouble is to start spending less than you make.

Spend Less Than You Make. It sounds simple, right? Well, it can be very difficult if you have a problem with willpower. It is important to stick with spending less than you make or you will find yourself in exactly the same place as I was before and had to resort to debt relief help option like debt management plan to get out of debt.

If you can summon enough willpower and strength towards your finances and spending, then you will find yourself the winner in the game of debt without the need of a debt management program.

As someone who has been there and done that, my advice is – If you don’t have the money to spend, then don’t spend it!

With the increasing number of people struggling with credit card debt, credit counseling services have become more popular than ever. If you are one who is also drowning in credit card debt and wants to be debt free, get help from a credit counseling agency.

Of course, not everyone believes that credit card debt counseling can help you be debt free. This has got to do with the many scams reported trying to make quick money from people who are already drowning in debt and desperately in need of debt relief.

As not all credit counseling and debt management companies are genuine and provide good advice, choosing a reliable credit counseling company becomes a critical factor in determining the success of credit card debt counseling.

As a general rule, go for a reputable non-profit credit counseling agency that is affiliated with the National Foundation for Credit Counseling (NFCC), usually known as Consumer Credit Counseling Services (CCCS).

A legitimate credit counseling agency can help you in not just getting rid of your credit card debt, but eliminating it in a way that is so cost effective. In other words, your credit card debt gets to be settled much quicker than if you were trying to do it all by yourself without any credit counseling.

Moreover, getting help from a proper credit card debt counseling can save you a lot of time and energy that you would have otherwise spent on studying all about credit card debt, gathering information about various credit card debt relief options and comparing them.

Further, the various financial solutions such as credit counseling, debt consolidation, debt management programs, debt settlements and bankruptcy provided by the credit counseling company enables you to choose one that appeals the most to you.

There is no doubt with regards to the endless benefits credit counseling can bring to you. However, you have to be careful with fly-by-night companies to avoid being scammed into paying tonnes of monthly service fee and leaving you with more debt than ever.

You are lucky if your debt hasn’t landed you on the need of enrolling in a debt management program.

I had to resort to joining a free debt management program after failing to see much decrease in my credit card debt. Month after month I threw in chunks of my hard-earned money into making the minimum payments, yet the total credit card debt didn’t seem to drop much.

Was it because I kept adding new credit card debt to my outstanding balance? Noop. It’s because of late payment fees, over-limit charges, cash advance fees, retail interest charges, and miscellaneous fee charges that kept being added into my total debt.

Scary, right? To avoid letting these horrendous fees imposed by banks and credit card companies drags you into a deep debt hole, you need debt management tips to help you get out of debt fast.

1. Credit Counseling. Seek help from a certified credit counselor who can help you navigate through your debt dilemma.

You can either opt for a non-profit credit counseling agency or a for-profit credit counseling company when it comes to credit counseling. The difference is that the former provides free counseling and charges a nominal monthly fee if you decide to enroll in a debt relief program while the latter charges quite exorbitant fees.

2. Debt Consolidation Loan. You should only consider a debt consolidation loan if you are not able to replace your high interest credit cards with one, low interest rate credit card. This is because you may have to pay for an application fee for a debt consolidation loan, whereas with a credit card you would not.

3. Home Refinancing. Refinancing your mortgage allows you to save hundreds of dollars per month on mortgage payments. With lower mortgage payments, the money saved could be used to pay off your credit card debt.

4. Home Equity Loan. Alternately to home refinancing, you may have enough equity in your home to cash out and pay off your debt. Most importantly, credit card debt is not tax deductible, but a home equity loan is. This means you can reduce your debt as well as reduce your tax obligation by cashing out.

See, you have some viable solutions to help you get out of debt fast without resorting to any debt management program, debt settlement plan or bankruptcy that damages your credit score.

Wonder if you just need a credit counseling session to advise you on budgeting and managing your debt or a debt management program to help bring debt relief without stress?

Well, answer a few questions here:

1. Have you been paying off your balance in three months when it used to take one month?

2. Do you always not know the amount you owe until your bills arrive?

3. Have you been maxing out your credit cards regularly?

4. Have you been paying bills with card cash advances?

5. Have you been paying off one credit card bill with another credit card?

If you answer Yes for most of the questions and you have only been able to pay just the minimum amount for your credit cards every month, this may indicate that you are in deep debt trouble and in need of a credit counseling session with a debt management counselor to educate you on how to budget and keep your debt under control.

If after going through a very thorough review of all your bills, income and expenses and the credit counselor finds that you can’t earn quite enough to make ends meet, he will suggest you to enroll in a debt management program.

Once it is determined that you need a debt management plan to help you pay down your outstanding debt, the certified credit counselor will start negotiating with your creditors to reduce the interest rates and waive the late payment fees and over-limit charges.

By combining your multiple credit card payments into one smaller and more affordable monthly payment, you don’t have to worry the possibility of going into further debt or into bankruptcy.

And when you have completed your payments that take approximately between 36 to 60 months, they’ll help you reestablish your credit.

Are you drowning in multiple debts? Are your earnings for the month not enough to cover the monthly repayments required? Is your mail box stuffed with warning letters and legal notices from credit card companies? Are there times when you just want to run away from your credit card debts and creditors?

I used to be like you too – I was drowning in heaps of secured and unsecured debts; my monthly income was always not enough to pay the minimum payments; the mail box was filled with warning notices and legal letters from credit card companies and there were many times that I just wanted to run to another country to start a new life.

However, you can get out of this terrible debt situation by signing up a free debt management program.

Debt management programs, both non-profit and for profit, are programs designed to help those who can no longer make payments on their cards, and are used as a last step toward bankruptcy.

When you enroll into a free debt management program, a credit counselor will speak to creditors on behalf of you to make negotiations about your outstanding debts, interest rates, and late payment fees or over-limit fees.

A good debt management counselor who is in charge of negotiating with your creditors to reduce your monthly payments to match your ability to pay can help you reduce your monthly repayments to your creditors up to 75%.

The credit counseling agency that takes one monthly sum from you will be in charge of redistributing the funds to all your creditors.

Once you are in the debt management program, your creditors will not contact you to demand you to pay your debts.

Debt management plan tends to have less impact on your credit score, as compared to bankruptcy, but requires that you have sufficient income to cover your living expenses, plus the plan payment.

As a conclusion, debt management program enables you to easily reduce your debts and make single monthly payment to one credit counseling agency on one date.