Money Management and Credit Card Debt | Ramblings of an e-trader

Saturday, 29 January 2011

Money Management and Credit Card Debt

I was reading an article on money management and credit card debt this morning and one thing that struck me is that there are people who purposely applied for a second credit card so that they could cover their debt on the first card. While it is possible to do so, like the Indian man who holds 66 credit cards, so many that he employs an accountant to manage his credit cards, it is not always possible with everyone.

I know of someone who had more than ten credit cards because the cards were offered to her for free and she thought that she could juggle them well but she ended up with a huge credit card debt which spiraled out of hand. Luckily she was saved by the AKPK (Agensi Kaunseling Dan Pengurusan Kredit) programme which helped her to manage her credit card repayment, consolidating to a single, small payment monthly.

I always think that one should only use a credit card to pay for purchases IF one already has that amount sitting in the bank. I know it defeats the purpose of having a credit card but that that is the way credit cards should be used. There surely wouldn't be so many credit card bankrupt cases, then!

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