now a lot of business promotion is encourage consumer purchase with installment plan, especially for electronics product, computer products, hand phone, massage product or furniture.
even bank also have provide an easy installment plan for credit card customer. Its a plan when purchase at least RM500 in single receipt(no matter what kind of purchase) also can convert to installment plan. sure, its willl have interest charges.
no matter its 0% installment plan or with interest installment plan, if we unable to control ourselves, its will cause us to create the Big liabilities.
think about it;
Ah Meng just get his 1st credit card with limit RM3000. He apply this credit card is for purchase a new computer with RM2400 with 12 months 0% installment plan. that means every months just need to pay RM200.
after half years...
one day Ah Meng go to shoping and looking for a new handphone. a merchanct is cooperate with Bank A, purchase N brand new handphone RM1200 can enjoy 12months 0% installment plan.
Ah Meng think he already pay half year means RM1200 for the computer installment, his credit card still have RM1800, so still can use the credit card to purchase the new handphone.
after few weeks, Ah Meng car suddenly got some problem, he send the car for repair. However, the car total repair fees is RM500. Ah Meng did not have the enough case, but he still have credit card can help him to pay the money on the spot.
RM200 (computer installment) + RM100 (handphone installment)+ RM500 (car repair)
the next credit card bills will charges Ah Meng total payment is RM800. lets say Ah Meng unable to pay the full amount, just pay RM400.
what is the next changing on the next credit card statement? its will starting have the retail interest charges, 1.5% per month.
if Ah Meng still continue use the credit card for petrol and use the credit card purchase at the super market with did not make the full payment? interest will continue charges, but credit card still can use.
Maybe after one year, Bank will automatic increase Ah Meng credit card limit from RM3000 to RM3500 just because Ah Meng is "good" payment credit card holder.
why?
because Ah Meng every months contribute 1.5% (one year is 18%) interest rate earning to the bank on time.
alot of credit holder bear the high credit card liabilities just because use the credit card for purchase, but just make the min payment every months.
by today, its really have some credit holder like convert the single bill RM500 which just purchase from the supermarket to installment plan.
this purchase habits only can make the people everyday to feel the liabilities burden as long as heavy.
so, think before make any installment plan.
buy it, when u are sure u really need the product;
reject it, when u still can live better without the product.
Don't make everything with installment plan.
even bank also have provide an easy installment plan for credit card customer. Its a plan when purchase at least RM500 in single receipt(no matter what kind of purchase) also can convert to installment plan. sure, its willl have interest charges.
no matter its 0% installment plan or with interest installment plan, if we unable to control ourselves, its will cause us to create the Big liabilities.
think about it;
Ah Meng just get his 1st credit card with limit RM3000. He apply this credit card is for purchase a new computer with RM2400 with 12 months 0% installment plan. that means every months just need to pay RM200.
after half years...
one day Ah Meng go to shoping and looking for a new handphone. a merchanct is cooperate with Bank A, purchase N brand new handphone RM1200 can enjoy 12months 0% installment plan.
Ah Meng think he already pay half year means RM1200 for the computer installment, his credit card still have RM1800, so still can use the credit card to purchase the new handphone.
after few weeks, Ah Meng car suddenly got some problem, he send the car for repair. However, the car total repair fees is RM500. Ah Meng did not have the enough case, but he still have credit card can help him to pay the money on the spot.
RM200 (computer installment) + RM100 (handphone installment)+ RM500 (car repair)
the next credit card bills will charges Ah Meng total payment is RM800. lets say Ah Meng unable to pay the full amount, just pay RM400.
what is the next changing on the next credit card statement? its will starting have the retail interest charges, 1.5% per month.
if Ah Meng still continue use the credit card for petrol and use the credit card purchase at the super market with did not make the full payment? interest will continue charges, but credit card still can use.
Maybe after one year, Bank will automatic increase Ah Meng credit card limit from RM3000 to RM3500 just because Ah Meng is "good" payment credit card holder.
why?
because Ah Meng every months contribute 1.5% (one year is 18%) interest rate earning to the bank on time.
alot of credit holder bear the high credit card liabilities just because use the credit card for purchase, but just make the min payment every months.
by today, its really have some credit holder like convert the single bill RM500 which just purchase from the supermarket to installment plan.
this purchase habits only can make the people everyday to feel the liabilities burden as long as heavy.
so, think before make any installment plan.
buy it, when u are sure u really need the product;
reject it, when u still can live better without the product.
Don't make everything with installment plan.
3 comments:
Maybe it will more than 18% annualy when the bank quoted it as 1.5% monthly when considering interest compounding effect, it will be around 19.5% annually.
the interest rate still not include for late charges- for people who are unable to pay the min payment.
oh ya~miss and did not notice this particular point~^^
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