Success Stories
Su Cheng* had spent
much money on purchases for herself in the past. Shopping became a
hobby, or rather, habit. She loved dressing well and often bought
designer clothes. It was hard to imagine that with a monthly income of
RM2,000 such lavish lifestyle was possible for her. How did she afford
all that? Her four credit cards, of course.
Over time, Su Cheng began to fall into
the trap of credit card debt as swiping her cards for payments seemed
all too easy. She even withdrew cash advances from one card to cover the
minimum payment of another card because she could not afford to pay the
full statement amount each month. Yet, she kept on buying her favourite
things. This went on for many months. Her financial situation worsened
as her credit card usage became an addiction. Was it the novelty of not
paying with cash, or the convenience and satisfaction of seeing your own
plastic card running through the machine quick and easily? Oh, the
thrill and satisfaction! Did she not know the consequences of not paying
back all of those transactions she swiped or was she just ignorant
about it? Or maybe she did not understand how credit card interest
works.
We must practise the stance that Cash is King. Spending more and more of her income by repaying creditors only left her with a meagre amount to live on. It was akin to a dark financial cloud hovering over her every day. What seemed like a perpetual strain caused massive domestic arguments between her and her husband. Because of constant pressure from creditors, she eventually sought assistance from AKPK.
We must practise the stance that Cash is King. Spending more and more of her income by repaying creditors only left her with a meagre amount to live on. It was akin to a dark financial cloud hovering over her every day. What seemed like a perpetual strain caused massive domestic arguments between her and her husband. Because of constant pressure from creditors, she eventually sought assistance from AKPK.
Taking the courage to personally come to
AKPK for credit counselling, Su Cheng enrolled under the Debt
Management Programme (DMP). Recalling three years ago when she signed up
for DMP, she admitted that she felt confused, depressed and unsure of
her future. Now, as her husband also chips in for her monthly repayments
of her credit card debt, Su Cheng is able to sleep well as she is well
on her way to recovering her financial situation. She no longer uses
credit for purchases while her marriage life has improved as a result.
Most importantly, upon learning from her folly, she now manages her
money wisely, reduced impulsive spending tremendously and plays the role
of ‘financial advisor’ for her family members by sharing with them her
troublesome predicament of misusing credit cards.
Indeed, the credit card is a double
edged sword if not used wisely due to its compounded interest.
Therefore, AKPK urges you to only swipe what you can afford to pay back
(in full) when your statement arrives.
*The names specified in these stories have been changed to protect
the identities of the individuals involved. These success stories are
meant to merely provide information on AKPK's services and lessons on
money management.
