Would you lend ten thousand ringgit to a stranger? If you just balked, don’t worry, that’s normal because RM10,000 is a lot of money. And while we’re along the same line of thought, have you ever wondered how banks dare to loan out thousands or millions of ringgit to people they don’t know? They may not know you personally, but they know what matters to them: your ability to handle credit responsibly and on time, information that’s available to them through your CCRIS report.What a CCRIS Report Contains
Your CCRIS Report contains three main arms of information: the amount of credit you have (the loans and/or credit cards you’ve taken out), [...]
Have you been irresponsible and maxed out your credit card or know someone who has done this? If you have, the prospect of settling your credit card debt could be daunting, especially when you consider that you have priority expenditures (bills, food, etc.) and high credit card interest rates to deal with.
Credit card interest rates are charged on the balance you carry forward after every billing cycle. They’re high as they’re meant to discourage you from carrying credit over in the first place – between 15% p.a. and 18% p.a. is the best you’ll get – and they’re calculated daily. This means that every day that you do not clear off your [...]
We all carry debt at some points of our lives. Sometimes, you just aren’t able to pay them off before you pass away. You may die accidentally, die from illness, or die from old age without fully polishing off your debt. You won’t get bogged down by them when you die, of course – but what about your family?Your Net Worth
Legally, your assets will be used to pay off your outstanding debt before any remaining balance gets distributed to your intended recipients, or beneficiaries. Before all that, though, your net worth will have to be determined.
If your total debt is worth more than your total assets, you have a negative net worth and is considered [...]
It’s never nice to see our bank accounts dwindle down to near nothing almost as soon as they’re replenished, but most of us must make do with what we have. One way to eke out a comfortable living is to pay off your debts as soon as possible. With the limited cash you have, though, what should you pay off first?Fixed Payments
If you’ve been working for a few years, there’s a high probability that you have several types of debts under your belt. It goes without saying that fixed payments are usually backed by legal contracts you signed, so set aside money for them in your budget every month before you even think about spending a cent!1. Your [...]