Many of us being approach by unit trust consultant and telling us it is good to invest in unit trust and so on.. you will get better return sometimes they will claim up to 34% annually which will trigger somebody to invest. But in reality is many people who invest in unit trust don't actually understand what is it about. By the way i am not a unit trust consultant or associated with them. What I am writing here is truly based on my experience.

I did invest in unit trust few years back. Not much actually. But I found out that during the withdrawal, I did lose some of my initial investment. Same goes to both of my parents.

Most of the unit trust agent did not actually explain the details to their customer regarding their investment. They did not educate the customer. And some of the agent after a while quit doing consultation and most of the customer don't have anybody else to refer to. This really make the unit trust industry look really really bad.

Unit trust is a mid term to long term investment. You need a good consultant to actually manage your fund and give you advice either to put in or to withdraw. Not many consultant like this we can find. Because most consultant they are only interested in the one time commission only.

To summarize the whole thing about unit trust is to get a really good unit trust consultant to actually manage your investment. Ask them as many question as you like until you are satisfied. Check their portfolio as well. Invest your money wisely.

Do you know, if you have a housing loan over 5 years, you are likely to bear the loan repayment with interest rates higher than the current base lending rate (BLR) offered by most financial institutions. Most lenders are bound by the terms and conditions and until expiry date "loked-in period" to create Financing Again.

There are many packages for home refinancing in the competitive market, especially in covering the costs of refinancing makes it an investment that is very impressed at any time in the life expectancy of housing loans, not only to reduce the number of monthly payments and save money in the long term even provide flexibility in managing your money.

Why We Need Financing Again

The main reason is to reduce the interest rate time, monthly payments and / or loan period. You may want to reduce the amount of payment each month so you can save the investment products. If you think base lending rate will rise, you may want to make refinancing to Fixed Rates. You may also want to make refinancing as property values in your area has increased and with it you want to take advantage of equity to fund additional property or other investment.

Among the reasons often overlooked to make refinancing is to update housing deposit and debt management for better financial flows. Refinancing is the first step in updating your financial management. If you pay very high interest for credit cards and overdrafts, you may want to pay a little debt as reserves for the long term. Housing Loan packages become more competitive by offering these benefits calculation (interest) basis rather than daily basis and monthly payment facilities pre-production and repetition to save the amount of interest paid during loan period.

Create Comparison

Very worthwhile if you get some comparisons between the Refinancing package flooded the market. Some factors you should carefully note is "zero moving cost" or "no-cost refinancing packages". In addition, note also that if the package offers pre-payment and repeated production (prepayment and redraw) during the period of financing. If your objective to reduce monthly payments, choose re-financing package that offers long term financing. Package like this is if you intend to occupy the house that you financed for a long period of time.

In determining the most appropriate package to the current situation and your family, it is important to realize your financial goals short term and long-term related to your financial situation and the property. Outline your current financial situation, financial needs such as short-term debts or modify homes and future financial needs such as sending children to study abroad. Try to match your long-term savings and insurance plans to ensure you have sufficient funds when you reach retirement age and no longer have a fixed income. The best results can be achieved is based on the overall information. If you are unsure, please get free advice that from a friend of mine offer.

Make a Smart Choice

Home Financing market lately offering very competitive packages as each financial institution tries to find a more effective and efficient to attract customers. From an angle, this development is beneficial because the user package is available on the market is cheaper and versatile than before. However, it can be a confusing situation for consumers choose the best financing package for them.

Housing Loan Protection and consultants experienced member of advisory services will be a very useful and re-financing package that works for you. Ask about trends Base Lending Rate (BLR) for the long term and short term. Also get advice about refinancing unique bid, who is appropriate to your financial situation. Get as many comparisons regardless of where that small financial institutions that offer refinancing because it may offer a more competitive package. Most important is ensuring that you get yourself fully understanding of the funding bid would you choose you may not get caught later.

Home Refinancing not difficult if you have a Loan Consultant and an experienced Housing Protection. Financing Housing Again is an effort to help you save money and perspiration giving you the financial freedom that you dreamed.

Isa Shabidin
Housing Loan Consultant

Two idol in the world of financial management, especially for me is Robert Kiyosaki. Although there is another website that says he is only their stories in 'Rich Dad Poor Dad', for me he has been giving a lot of encouragement and inspiration or motivation to the thousands or perhaps millions of people out there in financial management. Frankly I am one of them. I went to the courses organized few years back in Singapore and I get many benefits from it although I have not implemented the plan.

All people want to be rich in this world, but many are still said is their fate. Actually we all have the opportunity to achieve what we seek. Do we see our opportunity? What is important is we continue to work on it. There is a Malay saying that 'Rezeki tidak akan datang bergolek'. What we always see is other people success but hardly see all the hard work that a person have put in before they achieved their dreams. The most important thing is that we must always continue to strive our goals in life. Continue efforts consistently. Success is a sure thing, only time will tell.

I would like to share with all the readers’ very important information for everyone who would like to apply any type of loan facility from the banks. A lot of people must be wondering why some of their loan application being rejected. WHY?

Generally financial institution in Malaysia will look into applicant’s credit affordability through CCRIS (Central Credit Reference Information System) and CTOS (Credit Tip Off Service).

What is CCRIS?

CCRIS stands for Central Credit Reference Information System. CCRIS is a computer database of all creditors / borrowers which contains all their credit information.
Mostly financial institution in Malaysia will submit monthly credit report of all their creditors / borrowers to Credit Bereau in Bank Negara Malaysia. There is about 9 millions of creditor’s information which is stored in the CCRIS system today. All the data will be process by Bank Negara Malaysia for a credit report which can be access by any financial institution when ever they require. CCRIS report will show all your total credits, interest charges and other outstanding charges for all loans that you have with any banks in Malaysia. From housing loan, personal loan, credit card, hire purchase and overdraft. Everything will appear in CCRIS. It will give an overview for the bank officer for financial capability of a person who is applying a new bank facility. CCRIS will also give the information on any summons or bankruptcy that being filed.

Financial institution usually will evaluate your credit limit with all outstanding loans, together your loan repayment track record. Generally all financial institution will reject your loan application if there is more than two (2) months loan repayment outstanding. Banks will also use the information to calculate your monthly commitment based on your monthly installment and total loan remaining. The information will also be used to calculate DSR (Debt Service Ratio). Some of the financial institution will also reject your bank facility if your DSR were at 50% or higher.

To get your credit report you can visit

Ground Floor, D Block, Jalan Dato' Onn, Kuala Lumpur.
Tel: 1-300-88-5465 (1-300-88-LINK) (Overseas: 603-2174-1717)
Fax: 603-2174-1515 E-mail: bnmtelelink@ bnm.gov.my

Website : http://creditbureau.bnm.gov.my


What is CTOS?

CTOS Sdn Bhd is an organization that collects information for summons and bankruptcy towards individual or company and the information will be registered into their electronic database. Reports will contains all information such as court file no, location, court order, name, ic no, case status and etc. You can say everything will be recorded in CTOS. Even for summons case, the same thing will be registered. EVERYTHING!!

You can get your CTOS report from:

CTOS Sdn Bhd (209649-U)
Unit A-8-4, 8th Floor, Megan Avenue 1,
No 189, Jalan Tun Razak, 50400 Kuala Lumpur,
Malaysia
Tel: 603-2770 8833 Fax: 603-2770 8834
Website: www.ctos.com.my


In conclusion, CCRIS and CTOS is the first step evaluation the bank officer from any financial institution before your loan application to be sent over for approval. It is advisable for applicants to at least service your existing loan for a 12 months period with no late payment or skipping any payment before you plan to take any new loan. The chances are much higher this way. To all people out there who are planning to take up new bank facility or new loan, please get your CCRIS and CTOS report clean before applying to save your time, energy and money.

From research by the world famous financial planner you will need some sort of financial liquid regardless of working people like me or even a business owner. Some people said for a company to have a healthy financial statement are to have at least 6 months of cash flow to cover all overhead costs.

To me the best scenario for business owner or working on their own is to have at least 2 years of monthly expenses. For example, your monthly expenses is RM10,000.00 you will require to have at least (RM10,000.00 x 24 months) RM240,000.00 in your savings to sustain your business if there anything unfortunate happens.

As for working people, they should at least have 6 months of their salary in their savings accounts. You should have sufficient time for you to look for another job and sustain your monthly commitment for over at least 6 months. However if you could save more is always better.

For Malays in Malaysia, I would like to encourage if you could put some of your savings in ASB. ASB is giving the way higher dividend then your normal savings account. On a good time you can at least get 8% return on your investment. Maybe in next post I could explain another secret in using your Overdraft (OD) with your ASB.

Credit Card is the only legal AH LONG in Malaysia and which I think many people will agree with me. Many people warned me about getting a credit card and I can assure many of us was really excited when we received our first credit card. We start to spend beyond what we can afford and there where the troubles start.

According to Malay Mail articled dated Monday June 15 2009,

"RM24b not small money
IS RM24.4 billion big money? This is the amount of credit card debt owed by Malaysians, according to Bank Negara Malaysia’s statistics as at end of March 2009, reported by Bernama last week.

The report, however, stated that the credit card debt in the country has not yet reached a critical level, according to the Credit Counseling and Debt Management Agency (AKPK). This is because up to that period, loans via credit card accounted for only 6.1 per cent of the total financing by banking institutions.

However, Malay Mail took a closer look at how much RM24.4 billion is worth by looking at the country’s 2009 budget allocation, and we find that RM24.4 billion is certainly worth “something”."

There are another option rather than going to AKPK (which you are still going to be in CTOS list which make you harder to do other loans plus all your bank facility will be freeze until you have settle all the debts) which is EPP.

What is EPP?? It is an Easy Payment Plan sort of Installment payment. How ever there is a catch. You will need to pay certain amount to the bank in order for you to make 0% interest on the installment plan. The amount will vary and depends on how much you owe the bank and the % require by the bank. From my point of view this is much better way to settle your credit card bills. Even you are able to pay the minimum payment it will take years to settle. With this method you are able to settle the credit card debt in 12-36 months depending on the option you take. You can significantly reduce your interest rates and not paying for what you are not using.

Anybody interested to know about EPP you can drop me an email and be glad to forward your contact to an agent who have introduce me to this concept. The bank also will be glad to help you with this which will also reduce their NPL.

Another option is that you can try to make arrangement with the bank to do restructuring payment. However this will appear in your track record later when you want to apply for other loan which might reduce your chance to get the loan approved. (Actually I have just found out this through a friend of mine who are an ex branch manager and I actually did the restructuring payment for 2 of my credit card) What is done is done. Can't do anything now. My advice is to be friends with bankers. They know a lot of things (The loop holes).