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.

However, there’s a change of plan now! @.@

Even though the small emergency fund has reached its RM10,000 and the big emergency fund has been 56% towards the goal, hubby’s 50% salary cut and uncertain online income of mine have made me think twice.

Finally, a decision has been made, that’s throwing the extra money into the big emergency fund account until it reaches RM10,000.

Once it reaches RM10,000, I will keep rolling a certain amount each month into my small emergency fund savings account.

Once that certain amount of money is enough to pay off a small credit card debt, I will pull that cash out and pay off the debt.

In this volatile economy and situation, I think having more cash in savings account is safer than having lower debt. In other words, having a debt snowball savings account brings more security.

So, reaching the RM10,000 goal for the big emergency fund account and then turning the small emergency fund account into a debt snowball savings account!

Previously, I was too restricted to only topics related to my debt management plan, credit card debt, saving money and emergency fund that I found myself running out of ideas and only posted when I had enough info.

Since two weeks ago, I started blog-hopping a bit and joining memes run by financial bloggers like Ginna from MyPrettyPennies.com. Ha, I feel like going back to the old time in 2007 when I started blogging!

Okay, today’s Weekly Money Check-Up is here:

1. The most I’ve spent this last week was on Provite liquid chlorophyll which was RM31.90.

2. Today I am thankful for only spending RM6 on lunch and dinner for two persons.

Last night, hubby and I decided to cut down on our meal expenses for financial and health sakes. One way is to stop eating out at night on week days.

Since we have already ordered 2 vegetarian dishes for lunch from the nearby vegetarian restaurant (I cook brown rice at home), we might as well order one more dish. So, 3 dishes that cost merely RM6 are enough for lunch and dinner! ^.^

Photo Credit

3. Money can’t buy happiness. One free thing I did last week that made me happy was finally able to finish scrubbing the mildewed bathroom tiles.

I know I am supposed to clean the bathroom more often, I know, I know.

4. I will consider this week a success if I finish packing all the extra clothes and unused items and accessories into boxes.

I am glad that I am slowly moving into becoming a minimalist to save money, time and space.

5. A good friend is someone who stands by you during hard times.

Let me recall what my 2010 New Year Resolutions were: 1. Saving Money 2. Making Money and 3. Paying Down Credit Card and Personal Debts.

How did I fare on these 3 aspects last year? ^.^

1. Saving Money. As of 31.12.2010, our i) Joint Savings Account for big emergency reached half of the 3 months’ living expenses; ii) E-Fund Account was equivalent to half of the 3 months’ living expenses in Joint Savings Account; and iii) Investment Fund Account had less than RM1,500′s worth of mutual fund and stocks.

2. Making Money. Online income was 100% from blogs. Each month’s online income was more than enough to pay the home loan installment, bank overdraft interest charge and some daily expenses, but still not good enough to let hubby retire from his long-hour teaching job.

3. Paying Down Credit Card and Personal Debts. Debt repayments to AKPK were in time every month and hubby and I were able to pay off some personal debts owed to 3 family members amounting to RM2,100.

What are my resolutions for year 2011? Well, same as above! Keep on saving money, making money and paying down credit card and personal debts.

Okay, be more specific!

1. Saving Money. i) RM10,000 in Joint Savings Account. The existing amount plus year 2011′s rental will be equivalent to about RM8,000, so RM10,000 goal should be attainable; ii) RM10,000 in E-Fund Account. The existing amount plus my monthly school income plus some online income, yup, it is reachable too; iii) Investment Fund Account. To be frank, no idea yet.

2. Making Money. This year I will pay more attention to Amazon Associates Program. Just learned some new tips that can bring in more earnings from its affiliate products. It’s really fun making US dollar; USD$100 is equivalent to RM300, you know.

3. Paying Down Credit Card Debt and Personal Debts. Keep on paying down the debts, of course!

Enough goals for year 2011!

During home cleaning in Ipoh on Thursday, I found some personal finance books which I bought many years ago! I think they were bought years before I was loaded with credit card debt or when my credit card debt was not that staggering.

Multiple Streams of Income by Robert G.Allen, The Millionaire Next Door by Thomas J. Stanley, Millionaire Women Next Door by Thomas J. Stanley, Rich Dad, Poor Dad and Rich Dad’s Guide to Investing by Robert T. Kiyosaki, The Richest Man in Babylon by George S. Clason, …

You know how much the book of Millionaire Women Next Door by Thomas J. Stanley? Phew, RM108 in year 2004! Year 2004? Ya, my finance was okay at that time. Gosh, I must have been mad to have bought such an expensive book!

It’s apparent that I didn’t apply any of the financial tips from any of these bestsellers. If I had learned and applied the tips in the book, I wouldn’t have been in such a deep debt trouble and had to enroll in AKPK debt management program.

After struggling so much financially, I think re-reading these financial books now may bring me more insights and results than 5 years ago.

Compared to 5 years ago, I am now more responsible for my finances and willing to apply what I have learned to pay off credit card debt fast, cut down spending,  save more money and increase income.

05.05.2010 3.19 p.m.

Finally, the much anticipated book, Tip-Tip Kewangan Untuk Rakyat Malaysia, which was written by K.C. Lau, arrived at my doorstep this afternoon!

It’s a 353 mm x 250 mm envelope that’s too big to be stuffed into my mail box, so the postman left it on my door mat. Inside the envelope were two books sent by K.C. Lau.

One being his own book, Tip-Tip Kewangan Untuk Rakyat Malaysia while the other one, The 8-Day Internet Wonder by Edwin John.

I personally requested K.C to send me these two books for reviews because the topics fit my blog, www.FreeDebtManagementProgram.com, perfectly. My blog covers topics like credit card debt, AKPK debt management plan, emergency fund, saving money, spending, expenses, income streams, …

05.05.2010 6 p.m.

Okay, I am ready to share with you some of the tips!

As you can read from the title, Tip-Tip Kewangan Untuk Rakyat Malaysia, it’s written in Bahasa Malaysia. No sweat if you are a Malaysian, right?

There are 4 parts in the book:

Bahagian 1: Tip Kewangan Bijak
Bahagian 2: Tip Menjana Wang
Bahagian 3: Tip Menjimat Wang
Bahagian 4: Tip Melindungi Wang

As I am currently in AKPK debt repayment plan and very interested in picking up more saving money tips, I jumped to Bahagian 3 first.

Bahagian 3 – Menjimat Wang (Tip #13 – #17):

Tip #13 – Miliki Kereta Pertama Anda Secara PERCUMA. I totally agree with buying used/second hand cars to save money!

The first car hubby bought was a new one, Ford Laser 1.5, with RM826 monthly installment. He paid a total of more than RM55,000 for a 5-year auto loan and when he sold it, he got back only RM21,000.

The second car was a used Proton Wira 1.3, with RM620 monthly installment. The selling price was RM28,000 and it was at RM15,000 after 3 1/2 years.

The third car is a used Toyota Camry 2.2, with RM820 monthly installment and RM594 yearly road tax. It was bought before we  got into very deep credit card debt.

During the time of struggling with increasing credit card debt, we did think of selling it to cut down spending, but we couldn’t. The amount of car loan still owed to bank was simply larger than the car selling price; there’s still a need to fork out a few thousand ringgit.

Now that with less than RM14,000 car loan to go, hopefully it can be paid off without difficulty by August 2011.

Go to ‘AKPK DMP Blogger’s Book Review: Tip-Tip Kewangan Untuk Rakyat Malaysia by K.C Lau’ – Part 2.

While living with parents, grandparents and other adult siblings under one roof after becoming of age is uncommon in America, it’s perfectly normal in Asian countries like Malaysia.

I grew up in a big family of 8. Well, not the ‘parents + kids = 8 people’ family, but a family of eight that consisted two uncles, grandma, mom, three sisters and me.

There was no privacy to speak of with 8 family members living in a double-storey house of 3 bedrooms and 2 bathrooms. But of course, privacy was not my main concern at that time.

Now at the age of 39, working from home and living frugally due to credit card debt, privacy is my main concern. I don’t think I can live with other family members in one house. I am soooooo used to my quiet life that I can go crazy if I have to:

1. chat with family members most of the time (I can sit in front of my computer without uttering a word the whole day, but can I do the same when there are family members around? I have to talk when grandma/mom/uncle asks me questions, you know);

2. bear with the noise from radio and TV (there is no TV in my rented flat here and I seldom listen to radio now);

3. do more household chores (imagine the loads of household chores when there are 8 people and I am the youngest in the family!);

I am glad that I don’t have to live with my parents-in-law (they passed away long before I knew their son) and my mom (she lives in the house that she bought with my younger sister).

Like me, my mom is also used to living alone; she simply can’t get along with others.

For now, I don’t want to live with other adult family members under one roof again. Maybe one day when I am older and wiser, …

So, are you living in a multigeneration household to save money?

I have about $25,000 of debt but can still pay monthly payments on time and have never missed a payment.

If I try to get a personal loan as opposed to a debt management program, which looks better to creditors?? My credit score is around 650-670. I am thinking of going to a non-profit credit counseling agency to see what they think.

I still have some stocks and bonds totaling $6,000. I do get paid consistently and have been trying some internet surveys to make some small money on the side to my job.

What things should I look for at the credit counseling agency?

It’s his Chinese New Year Song that some people, especially the elderly, may get offended. But not hubby and I. Hubby is in his early fifties and I, the AKPK debt management program blogger, am in my late thirties. Both of us like Namewee’s songs because we find him such a creative guy.

The lyrics in his songs are nothing but a revelation of truth. Well, the truth always hurts, you know.

I like this CNY song simply because I for one also can’t stand those same traditional Chinese New Year songs sung by local/international artistes year in year out.

Not only do I not like CNY songs, I don’t celebrate Chinese New Year anymore. It’s been many years since I celebrated CNY.

Since when I stopped enjoying this joyous festival? I think it’s since I was heavily loaded with credit card debt and there wasn’t extra money to buy Chinese New Year goodies and give kids Ang Pao.

From then on, I associated CNY with ‘money spending festival’. I was so stressful whenever CNY approached. Trying to avoid as many family/friend visits as possible was one of my ways to cut down on money giving.

Now that I am under the AKPK debt management programme, with RM3,000 in my saving account and extra cash in hand to be spent on Chinese New Year goodies and red packets, I still choose not to celebrate it.

I hate the yearly home cleaning and CNY decoration. I dislike the goodies and new year clothes’ shopping. I abhor the monotonous ‘giving face’ visits to relatives’ or friends’ homes.

Hubby and I just want to live CNY like any normal day. Ya, Valentine’s Day is also another normal day that doesn’t mean much to us.

Does it mean we are not happy with our lives now? No, quite the contrary, we are living more happily and contentedly now more than ever.

I always thank God for helping me and hubby get back on track financially, and blessing us with good dual income and excellent health.

I am curious. Are you still enjoying CNY celebration? Aren’t you tired of Chinese New Year rush, money spending and ‘face giving’ visits?

I am considering entering a debt management programme because I am way over my head in credit card debt.

I know it may not be the best debt relief solution but it seems I keep putting it off, getting no where paying down my debt.

Does anyone have advice or comments?