Tag Archives: Credit Cards

How AKPK Debt Management Program Blogger Saves Money As Emergency Fund?

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Posted by Vedis the DMP Blogger on January 30, 2010 – 3:20 pm
Filed under AKPK Debt Management Plan, Credit Card Debts, Credit Cards, Debt Management Tips, Financial News & Updates, Free Debt Reduction Tips, Saving Money, Spending / Expenses

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.

A Free Debt Management Program Blogger Loves Reading Debt-Free Success Stories

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Posted by Vedis the DMP Blogger on November 29, 2009 – 9:31 am
Filed under Credit Cards, Debt Management Programs, Debt Management Tips

Having been in a free debt management program since October 2008, I must say that reading news, articles or success stories of cutting up credit cards, paying off debts and living cash-or-debit-card-only lifestyle is very inspiring.

The success stories of getting rid of debts motivate me to keep on paying down my credit card debts through the debt management plan and most important of all, they give me hope that I can be debt free one day.

I want to be like Russell and Kathy Hildebrandt who successfully pay off $100,000 debt with DMP or Lisa Brough who was forced into a debt-free life:

Lisa Brough was forced into a debt-free life by medical disaster.

Her husband has Huntington’s disease, a degenerative brain disorder, and has been unable to work since 1999. The couple, who have three children, saw their finances suffer as a result. They ended up with $50,000 worth of credit card debt as Brough worked two jobs and still struggled to pay the bills and the high property taxes on their home in Westchester County, N.Y.

“I said to myself, ‘I can’t do this anymore,’ ” she recalled. “He was going downhill, and I had to figure out a way to get out of this. I couldn’t count on tomorrow because I didn’t know what tomorrow would bring.”

In 2005, she took drastic measures. She decided to sell her $350,000 home, pay off all the family’s debt, and move to lower-cost Cary, N.C., where she was able to buy a house for $164,000 house in cash.

Since then it’s been cash and debit cards only for Brough, 50, who has no debt of any kind.

My reasons of getting into knee deep debts were more or less the same as theirs. However, their ways, means or methods of getting out of debts may or may not the same as mine.

By reading and utilizing their tips on how to eliminate the debts and save money, I hope I can be free of credit card debts through the debt management programme in a few years’ time.

The success stories of others also make me realize that it is possible to survive and thrive without depending on credit cards!

AKPK's Debt Management Plan Is A Way Out Without Filing Bankruptcy

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Posted by Vedis the DMP Blogger on November 5, 2009 – 6:50 pm
Filed under AKPK Debt Management Plan, Credit Card Debts, Debt Management Companies, Debt Management Programs

AKPK Debt Management Plan (DMP)“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.

How To Shed $100,000 Debt With A Debt Management Program (DMP)

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Posted by Vedis the DMP Blogger on September 24, 2009 – 4:33 am
Filed under Credit Counselors, Debt Management Companies, Debt Management Programs

How to Shed $100,000 With A Debt Management ProgramAre you burdened with more than $100,000 debt and thinking if it’s possible to get rid of it with a debt management program (DMP)? Of course, it’s possible.

Let me share with you the Hilderbrandt family’s success story of paying off their debt by consolidating all their payments into one under a debt management plan while changing their lifestyle.

Russell and Kathy Hildebrandt, along with their three children, were honored with the Professional Achievement and Counseling Excellence (PACE) 2009 Graduate Client of the Year Award by the National Foundation for Credit Counseling last week for their 5 years’ hard work and sacrifice to pay off their charge accounts and credit cards.

The Hilderbrandt family of New Richmond, Wisc., was in knee deep debt with personal loans and credit cards amounting to a staggering $106,000 in 2004.

How did they pay off their debt without signing up with any of the countless debt settlement companies that advertise on radio, television and the Internet? Well, they found a certified credit counselor by contacting NFCC to assist them with their debt.

Eliminating Unnecessary Spending. They paid off their debt the old fashioned way by drastically changing their lifestyle. They bought clothing at thrift stores, eliminated gifts, and purchased only generic and store brands at the grocery stores.

That’s not all. They also stopped eating out and often ate hash browns, which they got for free.

Getting a Second Job. Russell sacrificed his sleep for a couple of years by taking a second job. At first their debt didn’t seem to decrease much. But as they paid off one balance, they applied the monthly payment to another, until they paid it off.

Four years and four months later the Hildebrandt family’s debt was finally paid off and they even saved enough money to buy a house in New Richmond.

To avoid falling into the hands of a disreputable credit counseling agency, make sure you find a reputable credit counselor that is certified, is affiliated with NFCC, and charges little or nothing for the service.

Read Success Stories Of AKPK Before Enrolling In Debt Management Program (DMP)

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Posted by Vedis the DMP Blogger on September 23, 2009 – 6:00 pm
Filed under AKPK Debt Management Plan, Credit Card Debts, Credit Cards, Credit Counselors, Debt Management Companies, Debt Management Programs, Spending / Expenses

AKPK Debt Management Program (DMP) Is Not A ScamAre you burdened with too much credit card debt that you are thinking of applying for Malaysia’s AKPK debt management programme (DMP)? But, you are also worried whether AKPK, the credit counseling and debt management agency set up by the Central Bank of Malaysia, is a scam or not, right?

I understand. Been there and done that.

To thoroughly convince yourself to enroll in the debt management plan, read as many success stories of AKPK as possible. There are more success stories of AKPK or AKPK bloggers now if compared to last August when I submitted my application form.

Before you read others’ experience using debt management program, read the FIRST AKPK success story; it’s my bumpy journey from submitting the application form to being approved of the debt repayment plan. :-)

And here is another success story that I would like to share with you. CEO, a man who is under RM200,000 credit card debt, has successfully applied for the AKPK debt management program recently.

He left a long comment at my credit card debt blog on August 1st, thanking me for sharing my credit card debt reduction and AKPK application process with others.

You don’t have to hop over to my credit card debt blog to read his comment. I have decided to copy and paste the entire comment on this debt management program blog for easy reading.

First of all, A BIG THANK TO YOU FOR THIS BLOG. You are not only a woman of courage to reveal all that detail, but you have helped me tremendously.

I just got out from the AKPK office, and they proposed to reduce my monthly commitment from nearly RM10,000 to just RM2,000 per month.

I got into a heavy credit card debt 5 years ago when a friend asked me to join him in a business. Trusting him, I quit my job, funded the business with my credit cards, supported HIM with a supplementary credit card which he took only 1 month to swipe up RM20k, and lastly he just ran away, leaving me to pay everything.

Finally, the economy hit my career, and this month I had to accept a drastic paycut. It scared me at first, but I decided that maybe there was a silver lining.

I found your blog. I read and re-read it until 3 am.

I thought — maybe, if I go to AKPK, and they reduce my monthly repayment, I can actually start seeing some SURPLUS from my smaller income. Better to have a small income but with extra money, than having a big income but nothing to show for it. Of course, with my previous 5-figure salary, AKPK would just kick me out, but now I had the advantage of the situation.

Last Monday, I braved myself to go to AKPK. It was the hardest thing to do, to be SEEN walking into debt counseling. I have appeared in the media before, television, magazines and newspapers. Didn’t know where to hide my face. I arrived at 11.45, and was put immediately into the intro class.

I was surprised to see quite a few “corporate people” in the class, dressed in their office attire. I don’t know if they were as ‘embarrassed’ as I was to be there. I sat down for 1 1/2 hours, after which I immediately went to Bank Negara to collect my credit report.

I made the earliest possible appointment to see a credit counselor. In the meantime, I went to each bank and collected any missing statements.

I went to see the counselor this morning. She was polite, comforting and never did anything to make you feel small. She said she would try to negotiate it down to RM1,800 a month for the first 2 years then RM2,200+ thereafter. I said never mind, let’s make it RM2,000 flat. I’m sure by the time the economy rebounds, I will be able to afford the RM2,000 easily.

She even guided me to fill up the application form properly (to fill the correct figures so the application can be approved easier). In short, she was there to help, and I mean REALLY help.

I got close to RM300k at first, but over the years, paying slowly, I have managed to bring everything down to under RM200k (which makes your RM60k something to smile about, actually!).

I have been earning 5-figures every month from my salary, yet I never get to taste my own money. My children have to settle for cheap clothings like poor kids.

Every month, I pay pay pay pay… I try to keep myself motivated, but it is tiring to wake up every morning, thinking to yourself, “I am running every day, only to stand still.”

She asked for the first payment of RM2,000 to be deposited, which I will do next week as the banks are closed today. From there, processing will take approximately one month.

She says no need to pay the creditors, if they call I just need to tell them I have submitted an AKPK application and fax the deposit slip if necessary.

Fortunately I am not yet under any legal problems, and most of my loans are still current. If you are thinking about doing it, do it now. It is important to take action at THIS stage before the banks start harassing you.

I do not really care that I will not be able to get any new loans until the 10 years are up. I am selling my house and just live with the car. Maybe not now, but when the economy goes back up, and my salary climbs back to normal, I should be able to save up for a couple of years, and pay for a new budget-priced apartment in cash. The important thing is I will now have a positive income and room to breathe, and I HAVE YOU TO THANK.

God bless you. Please keep up the good work.

Questions & Answers For AKPK Debt Management Program (DMP)

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Posted by Vedis the DMP Blogger on September 19, 2009 – 1:54 pm
Filed under AKPK Debt Management Plan, Credit Card Debts, Credit Counselors, Credit Score / Credit History, Debt Management Companies, Debt Management Programs

Q: Does being placed in the AKPK debt repayment plan mean I no longer can use my credit cards?

A: Yes. You NO longer can use your credit cards; all your current and valid credit cards will be terminated once you are in the program.

Q. Is it true that no banks would approve my new credit card and loan applications?

A: Yes. As long as you are in the program and haven’t settled all your credit card debt, no banks would give you credit cards or loans.

Q: What about after I have successfully paid off my credit card debt?

A: Yes. You can apply for a credit card or loan again after your full settlement.

And judging from what I know about Malaysia’s banks, I am pretty sure that you can get a loan again and fast so long as you have CASH as down payment.

A good example was my car loan. It’s about 3 years ago. Of course, I was still able to manage my credit card debt at that time and never heard of AKPK.

The bank officer that was in charge of approving my car loan kept telling me that my credit card payment records were far from satisfying and it’s kind of difficult for him to approve it.

Well, in the end he still approved the car. Why? I traded my old car and I could get back at least RM5,000. With RM5,000 paid as the down payment for the car, tell me, which bank would say no?

Q: I heard that my credit score will be damaged once I am in the AKPK debt management plan. Is it true?

A: Since you are thinking of visiting AKPK credit counseling agency, it’s my guess that you have already missed a few credit card payments or you have stopped making payments to banks, right? I am sure your credit report should have been tainted badly because of these missed payments, right?

So, does it matter much if your credit report is hurt a bit more by you being in the debt repayment program?

In fact, being in the program helps rebuild your credit rating. Your monthly repayment to the credit counseling and debt management agency shows that you make payment every month.

Judging from my experience with Malaysia’s banks, so long as you have CASH … ;-)   You know what I mean, right?

Q: You seem to say a lot of good things about AKPK. Do you earn a commission for each referral?

A: I HOPE AKPK pays me commissions for all the information and good stuff about AKPK mentioned by me. :-)

Of course, NO.

Q: Then, why do you talk about AKPK all the time and recommend it to every Malaysian who is in credit card debt?

A: The reason is simple. I am sick of seeing people selling credit card debt reduction solutions to people like you and me who are so deeply in debt and desperately trying to find ways to get out of debt.

Thinking back, I should not blame people who sell the credit card debt solution info. It’s human being’s mentality that FREE info is not worthy; only PAID info is valuable.