Cut Down Credit Card

I managed to cut  down one credit card so far.. I have plan to cut MBF card after all the Balance cleared. I want to cut Citibank Shell but the bank offer me to waive annual fee and Gov Tax.  So i save about RM50.. The other card on my list is HSBC bank MasterCard . Then followed tge AMBANK but take some  time since i have some balance installment plan for iPad 2. I hope i can achieve the financial freedom next year.

It is not easy to control the spending if youre a shoppaholic..

Public Holiday - Selangor only

Yeah... today is public holiday but i'm still have to work. Looking for extra money meaning extra income. Enough to cover for my leave since my leave has been completely use up. If i don't take leave, it can be converted to money....cash money. It can pay my debts.

It's very hard to slash my spending habit especially in new IT gadgets like Iphone 5(which i bought in Hong Kong and cost me about HKD 6850)  but very unlucky i can find the same model in other shop only cost about HKD 5800..According to salesman, HK model is more expensive that US version. The reason is HK model can be used in other countries.

The good habit in spending in our salary should be like this( maybe different people different strategy)

1.  Saving - 20%
2. Spending - bills, groceries, children about 30%
3. Credit card payment/house loan and car loan - 40%
4. Emergency - 10%

At the moment, my budget is very very tight.....so the percentage at this moment is like this

1. Saving - nil
2. Spending - 40%
3. Credit card  - 50%
4. Emergency - 10 %

Very bad...so my plan is to change slowly to good budget habit. Maybe take me another 2 years....Haha..

What my plan??

Lately I always tired and not enough time to do other thing. Always working start from 7 am till 6pm or 10pm. So far, I feel that u work for money only but not the other way round. We should let our money work for us. That the financial planner told us but not easy as they thought us. They need discipline, courage, perseverance and full commitments to achieve that.


Starting saving from young k is a good ideas but one again is not that easy..if you come from poor family or just enough salary income family, the priority is to male sure that our kitchen is smoking for food.

I have few things to settle.

1. To stop subscription for broadband. I have 3 broadband subscription. I think I need Unifi. So far Unifi speed and performance quite ok. Digi and P1 also ok but I need to stop this two. I save about RM 250.00. But P1 still have few months contract till March 2013.



2. Astro...I have 2 accounts. One under my name the other one under my wife name. I have to cut under my name. Save about $40...Under my wife to reduce the package. Use the basic one. Save about $50.

3. House loan...need to refinance. No time to go to bank..at the moment  at 7.6% so expensive..maybe can cut down to 4%..saving?? Not sure how much.


4.

How to clear debt??

I have more than 200k in debts. The highest is house loan about RM100+. The second is credit cards about 120k and car loan about 70k... My most important is clear the credit card as soon as possible since it has highest interest rate ranging from 8.88(maybank 2 cards) and 17% perannum. The faster we cleared the faster we can reduce the interest so we can save more from the interest.

Planning to cut credit card debt:

1.  Cut spending using credit card...especially the card that charged the highest interest rate. Use the lesser one.


2.  Use the card the give discount when buying like give discount when pumping petrol...or shopping. I use more UOB one card give 5% discount for any petrol and anytime. so we can save 5%.

3. For shopping i use Maybank 2 cards cheapest int rate.

4.  Balance transfer from the highest to lowest credit card company.

5.  To stop using the credit if no more using it..Saving interest and annual fee from government. Planning to cut Citibank and Ambank credit card.

tbc....