Tag Archives: credit card companies

Entering Into Credit Counseling With A Debt Management Program?

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Posted by Vedis the DMP Blogger on February 19, 2010 – 4:40 pm
Filed under Credit Card Debts, Credit Counselors, Debt Management Companies, Debt Management Programs, Questions & Answers

Question: Entering into credit counseling with a debt management program or … ?

I am entering into a debt management program with a credit counseling company. I have about $17,500 in debt and my payment with the company would be about $400 a month.

My question is, would creditors be willing to accept 1/2 of the minimum balance that is due actually? I have 3 cards I’m in debt with, $285/month, $185/month, $165/month respectively.

I’m already 2 payments behind with 2 of the cards. Would the credit card companies accept a personal offer of 1/2 the usual minimum for a certain time frame? So I’d offer them $142.50, $92.50, $82.50.

Or since I’m already behind on payments should I stick with the debt management program (I just signed on and have to make my first payment on 2/28) and wait until I’ve been in the program a few months and then try to talk personally to my creditors and see what I can offer at that time??

Please advise. Thanks.

A Must Read For Malaysian Credit Card Holders: ‘Those Bloody Banks, Credit Card Companies and Bank Negara!’

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Posted by Vedis the DMP Blogger on January 17, 2010 – 8:35 am
Filed under Credit Cards, Financial News & Updates

I, the AKPK DMP blogger, chanced upon this interesting article, ‘Those Bloody Banks, Credit Card Companies and Bank Negara!‘ by Fahri Azzat at loyaburok.com, at The Malaysian Insider.

You may have missed this article that relates how banks and credit card companies can be so unreasonable when it comes to credit card terms. Enjoy reading!

(Source) JAN 16 — Diana Chee Vun Hsai, like many of us owned a credit card. She had two. One from Citibank Berhad, the other from HSBC Bank Berhad. On 7 September 2008, HSBC called up her to alert her about her credit card being used. When she checked her purse, she discovered both her credit cards were missing. She notified both the credit card companies of the loss of her credit cards on the same day and lodged a police report at Dang Wangi police station about it the following day. She understandably thought that was the end of the matter. She was wrong.

On 16 September 2008, Citibank told Diana Chee Vun Hsai they were billing her for the unauthorized transaction of RM 1,859.01 done on 6 September 2008. She responded through her solicitors to inform Citibank that the limit of liability for a lost credit card was RM 250.00 as provided in clauses 15.1, 15.2 and 15.3 of the Bank Negara Guidelines BNM/RH/GLO-041-01 (“the BNM Guidelines”). Citibank’s lawyers replied pointing out to her that the terms of her credit card the crux of which is as follows:

“Our client imposes a duty on the cardholder to notify the loss one (1) hour prior to the unauthorized use and to provide proof of acting in good faith and exercising reasonable care and diligence to prevent such loss or theft of unauthorized use of the card before our client can exercise its discretion whether to resolve the liability or not. Such a clause is not in contravention of the Bank Negara guidelines.” (emphasis mine) Read More »

DMP Blogger, Should I Apply For A Credit Card?

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Posted by Vedis the DMP Blogger on September 4, 2009 – 12:37 pm
Filed under Credit Cards

DMP Blogger Prefers Cash Over Credit Card“Should I Apply for a Credit Card?” If you ask me – The DMP Blogger – this question, it’s for sure that I will discourage you from applying for a credit card. :-)

As a credit card debt woman who is currently under AKPK’s free debt management program (DMP), I will surely advise you to cultivate the habit of using cash, rather than swiping credit cards.

But, I am not your loved one or family member, right? Why would you want to listen to me? So, the decision on whether you should apply for a credit card is up to you.

With credit card ads in television, newspapers, websites, shops and almost anywhere and everywhere asking you to apply for a credit card, it’s difficult to resist the temptation.

Besides, when you look around, most people have credit cards or multiple credit cards. So, why shouldn’t you apply for a credit card?

Furthermore, you have been told that there are endless benefits associated with having a credit card. The most important benefit of a having credit card is none other than the convenience it offers. Instead of carrying a lot of cash on you which is both inconvenient and unsafe, you just need to carry a plastic card with you.

Moreover, you get interest free credit. This means that you don’t have to pay the bills till the next monthly billing cycle. With this benefit, you can buy now and pay later when your salary arrives. What a great reason to apply for a credit card, isn’t it?

In addition to that, you get to enjoy interest-free installment payment plan. You can buy the Samsung LN32B460 32-Inch LCD HDTV or Orient Men’s Multi-Eyes White Automatic Watch you have been longing for today and pay for it in installments on your credit card.

Another good reason to apply for a credit card is the discounts on shopping. Due to the tie-ups between credit card companies and the merchants, you, as a credit card holder, get to enjoy deeper discounts, reward points or even cash back benefits.

See, there are so many benefits of applying for a credit card, aren’t there? So, why shouldn’t you apply for a credit card?

Whether you should or should not apply for a credit card, it’s a matter of personal choice.

A Debt Management Program (DMP) Blogger's Tips For Applying For A Credit Card

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Posted by Vedis the DMP Blogger on August 31, 2009 – 4:57 pm
Filed under AKPK Debt Management Plan, Credit Cards

Is applying for a credit card now as easy as last time? Well, I am not so sure. Since I started credit card debt reduction in 2007 and AKPK debt management program in October 2008, I haven’t bothered much about credit cards.

However, judging from the credit card ads and offers that are still widely seen on the newspapers, magazines and online, it’s my guess that getting credit cards is still very easy.

These days even if your credit is bad, you can still get a credit card. There are tons of credit card companies out there that are willing to offer credit cards for people with bad credit or credit cards with no credit check.

As a credit card debt woman who is now in a free debt management program, my two cent opinion – Do Not Apply for a Credit Card if You Don’t Have Any.

You know, having a credit card almost always means that you are going to go into debt, be it a little or a lot.

Cautiousness is very important in using your credit card. If you are not sure that you can handle a credit card, then rethink applying.

You need to be sure that when the credit card statement comes in that you can make the payments. If you are not completely sure, then don’t get a credit card until you are ready.

If after analyzing your financial situation, you still think that you can handle a credit card and its payments, make sure that you read the fine print of the banks or credit card companies’ terms and agreements to make sure that there are not going to be any surprises.

You Don't Need A Debt Management Program If You Spend Less Than You Make

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Posted by Vedis the DMP Blogger on August 25, 2009 – 1:23 pm
Filed under AKPK Debt Management Plan, Credit Card Debts, Credit Cards, Debt Management Companies, Debt Management Programs, Spending / Expenses

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!

How To Deal With Credit Card Offers To Avoid Ending Up In A Debt Management Program?

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Posted by Vedis the DMP Blogger on August 22, 2009 – 10:46 am
Filed under Credit Card Debts, Credit Cards, Debt Management Programs

Deal With Credit Card OffersI no longer need to worry about credit card offers. The reason is simple – I am in a free debt management program now. :-)

As long as I am still in the program, banks and credit card companies dare not won’t approve any credit cards or loans for me. This is good to me who is easily enticed by loan or credit card offers.

Before enrolling in the debt management plan, I used to have 7 credit cards and a personal loan. From one credit card to 7 credit cards in 2 years’ time, thanks to my weak resistance to credit card offers.

I did try hard not to give in to the temptation the credit cards offered, but material cravings were more powerful than the will of my mind at that time. The moment a credit card issuer approved me a new card, I could hardly wait to use it to pay for items and services I fancied.

If you don’t want to end up signing up with a debt management program like I did, it’s wise to prevent yourself from accepting another new credit card offer to add new debt to your existing amount of debt.

Credit card offers, no matter how enticing and convenient they might seem, may be the most expensive loans made by banks, department stores, and gasoline companies for you.

But how to avoid the temptation of credit card offers?

If you seem to have problems saying “no” to credit card offers, the most effective way to prevent yourself in accepting another credit card is a little bit of truth serum – How Much Credit Card Issuers Get from Every Transaction of Your Credit Cards.

Besides high interest rates, there are also annual fee, late fees, retail interest fees, cash advance fees, over-the-limit fees, and other miscellaneous charges that add to your credit card debt.

I decided to enroll in a debt management plan not because of the total amount of my credit card debt I owed. NO. It’s because I couldn’t bear with the high interest charges, late payment fees, over the limit fees and all sorts of ridiculous charges that added to my credit card debt exponentially.

All the fees and charges made paying down my credit card debt a waste of all my hard-earned money. I was only paying the fees and charges, not the principal amount of my credit card debt!

If you are really a person who cannot say “no” to numerous credit card offers, you must learn to pay bills punctually so the interest rates and charges are as low as possible. It also pays to read monthly statements while keeping the copies of sales receipts so you would compare the charges.

It’s better for you to learn how to deal with credit card offers now when your credit card debt is still under control, isn’t it?