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).