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.

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!

If you are really thinking that bankruptcy is your only debt relief option, you may/might be wrong.

As a woman who was once loaded with RM63,809 credit card debt in 2007 and later reduced the debt amount to RM40,000 in 2008, I had also thought of going bankruptcy.

The thought of filing bankruptcy rose when balance transfers, non-performing loans, short term loans and personal loans didn’t work to bring down the interest rates and outstanding amount much.

On the contrary, there were late payment fees, cash advance fees, retail charges, over-the-limit fees and other miscellaneous charges that kept adding new debt to the credit card debt.

I know how it feels to be under so much pressure from debt that you can’t even think straight. But believe me when I tell you that bankruptcy should be your last resort option.

I’m talking about no hope of ever getting out of debt after trying out balance transfers, non-performing loans, short term loans, personal loans, debt consolidation loans, debt management programs, and debt settlement plans.

One of the reasons that I didn’t opt for bankruptcy was because of the fact that I could pay off my credit card debt through a debt management programme offered by AKPK.

If you are a Malaysian and loaded with credit card debt, you may have known about AKPK by now.

Enrolling in AKPK’s debt management plan is another debt relief option that many Malaysians with credit card debt are seeking now. It’s a free debt management program that charges NO counseling fee, enrolment fee or monthly fee.

I am currently in AKPK debt management plan. In fact, I have been in the program for a year now.

Read my bumpy journey when applying for AKPK’s debt management program in 2008 if you think you need help from credit counseling and debt management program to help you pay off credit card debt.

Wow, it’s been a year since I started making monthly debt repayment to AKPK! You know, I have also been able to save extra money in my personal savings account as emergency fund due to the debt management plan.

A debt management program is one of the many debt relief options that a credit counselor might suggest when you’re having issues with credit card debt.

It is also a good option if you don’t want to apply for a debt consolidation loan or declare bankruptcy.

Okay, let’s see some of the benefits of enrolling in a debt management program.

1. Reduced Interest Rates. Once enrolled in a DMP, your credit counselor will negotiate with your creditors to reduce your interest rates.

Interest rates will vary depending on your situation and your creditors, most rates are between 2% to 9% and under certain circumstances, some creditors may completely eliminate their interest rate to 0% interest.

2. One Single Payment. Instead of making multiple credit card payments on various due dates, a debt management plan enables you to make ONE payment to One agency on ONE due date.

I will never forget those old days when I had to run 6 banks to bank in 15 credit card payments!

Now I only need to make one payment to the credit counseling and debt management agency’s collection account by the end of every month. The single monthly payment will then be distributed by the agency to the creditors.

3. Waived Late Payment Fees. If you have late payment fees for delayed credit card payments, the credit counseling agency will help you negotiate with your creditors to waive them.

4. Creation of a Budget. The program you choose usually will help you to organize your personal finances with the creation of a budget. In this way your credit counselor can make sure that you are able to make your monthly debt repayment on time.

5. Peace of Mind. With the help of a debt management plan, you are able to start organizing your money and seeing how the amount of debt reduces and your personal savings increases.

Of course, there are disadvantages of enrolling in a debt management plan too. Before you decide if a debt management program is right for you, check the other debt relief alternatives and balance the advantages and disadvantages.

Debt management program, also known as debt management plan, is individually designed to consolidate all your multiple credit card payments into one lower payment.

The debt management repayment is often made affordable to you so that you can pay all your credit card payments.

Of course, a debt management plan is NOT an option for you if you are already at advanced litigation process or involved in bankruptcy.

If you find that a debt management program is right for you after a credit counselling session, your credit counsellor will start negotiating with your creditors to lower the credit card monthly payments, reduce the interest rates, and waive late payments and over-the-limit charges.

Often times, your creditors or banks will agree to the affordable repayment plan just so they can receive any amount of payment towards the balance you owe them.

As a credit card debt woman who is now in a free debt management program, I must admit that it is a great solution for helping me get rid of my credit card debts.

The DMP not only allows me to pay ONE lower repayment every month, it also stops the wave of annoying or even threatening phone calls or warning letters from the banks and credit card companies.

Signing up for a debt management program is easy; it’s a matter of finding a credit counseling and debt management company you feel comfortable with that is difficult.

Make sure you find a credit counselling and debt management agency that will work best for you. Remember, you want the right debt management program to put an end to your pestering debt problem, not creating more debt.

There were a few reasons why I signed up a debt management plan and not any debt consolidation or debt settlement.

First off, the debt repayment plan I enrolled in is FREE. There is no initial fee or monthly service fee charged by the credit counseling and debt management agency.

Yes, it’s a free debt management program that is only available in my country. It’s not available to people in the US, UK, Canada and other countries.

As it’s a free debt relief program and I had come to a point that I couldn’t go on paying the huge amount of minimum payments, I decided to enroll in the debt management program.

But why didn’t I DIY debt management to pay off the credit card debt?

Oh, I did. In April 2007, I started self-help debt reduction to pay down some of my credit card debt before I joined the DMP. Between April 2007 and August 2008, I managed to bring down my credit card debt from RM63,809 ($18,000 in USD) to RM40,334.

Just as I thought my effort of tackling my credit card debt would pay off if I kept on budgeting and curbing my spending habits, bad things kept popping up.

First of all, the expenses always surpassed the income. Due to economy downturn, hubby and I were not making sufficient money to pay all the credit card minimum payments, car and home loan installments, utility bills and daily expenses.

When we failed to make payments on time, you know what will come next, right? Yup, banks and creditors started charging late payment fees, over the limit charges, cash advance fees, retail interest charges into my credit card accounts.

One day in August 2008, I told hubby that I had had enough of my credit card debt, non-stop phone calls from banks and warning notices issued by creditors. I wanted to get rid of them.

So, I am now in the free debt management program.

First off, the debt management program I enrolled in my country is FREE; there is neither enrollment fee nor monthly service charge.

As far as I am concerned, there is only ONE credit counseling and debt management agency in my country. It’s different from the US where there are lots of non-profit and for-profit credit counseling agencies.

Since it’s free debt management plan that involves zero service fee, why not?

Next, contacting banks and negotiating a partial settlement or a reduction in the bills is more difficult than you think.

I DID try to call up and write in asking for lower interest rates. Out of six banks, only one bank agreed to reduce the interest rate to 9%. A few banks were between 12% and 15% while the rest declined to lower the 18% per annum interest charge.

When I found out that my credit counselor was able to negotiate with banks to reduce my interest rate from 18% to 6% and 7% for some banks, and most important of all, to waive late payment fess and over limit charges, it didn’t take me long to make up my mind.

I signed up the free debt management program after the certified credit counselor explained in details what a debt management plan was and reminded me a few times that all my card accounts would be included in the program and closed.

Take note: All Your Credit Card Accounts Will Be Closed Once You Are In A Debt Management Plan (DMP). Shutting down all your accounts means that it’s likely to damage your credit score.

Since my maxing out most of my credit cards had already harmed my credit utilization ratio, a key component of credit scores, it’s okay to shut down all card accounts.

If you are in the US, make sure you sign up with a credit counseling agency affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

An accredited credit counseling and debt management agency typically charges $30 one-time setup fee, and $15 per month while you’re on the debt management plan.

If you don’t want to deal with your creditors directly and you need help with all of your credit cards, opt to go through a debt management program.

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.

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.

At first, it was very difficult for me to control every cent and dollar and stick to a budget. I was so used to spending money like water all these years, so logically speaking, I really needed time to change my spending habits.

Fortunately as time went by, the habit of limiting my spending seemed to develop and work automatically.

If you are in debt and hoping not to end up in a debt management program, then you have to start cutting back on your spending and sticking to a budget by trying a few practical changes that you can make everyday.

You’ll be amazed that you can actually cut your spending more than you expect by simply making some minor changes.

1. Pack Your Lunch Every Day. Having lunch at restaurants or food courts is definitely more expensive than bringing your own lunch.

By bringing your own lunch, you can save several dollars every day, which will add up over time.

2. Use Your Cell Phone During Off Peak Hours. Are you one of those people who spend a couple hundred dollars a month on phone charges? If so, lower your phone charges by making most of your calls during off peak times.

Check with your service and plan to find out when you have cheaper or unlimited calls.

3. Start Clipping the Sunday Newspaper Coupons. Stop throwing away your Sunday newspapers, what a waste! Instead, skim through the advertisements for coupons and sales.

Although the process of clipping coupons is tedious, the savings are often worth it due to the fact that more and more stores double or triple the amount of their coupons.

This technique can save you up to 20 or 30 dollars each time you head to the food store.

To be honest, I used to sneer at the idea of cutting back on spending that saved a dollar here and there. How could saving a dollar here and a dollar there help me pay off credit card debt?

Well, the truth is a dollar here and there really adds up in long run. Changing your spending habits does save you much money.