Get out of Credit Card Debt Fast

Many people have had trouble with credit card debt because of rising interest rates and mounting credit card debt. The sensible thing to do is consolidated your credit card debt, reduced your interest rate so that you will be able to settle in 12, 18, 24, 36, 48 or 60’s months period and not take you twenty years to pay off.

Debt consolidation loan is designed to help you pull yourself out of financial difficulties. Imagine, if you only pay RM 300 per month instead of RM 9000, you would be freeing up a lot of cash flow and you will enjoy better life style.

I have known a case where this guy is able to save RM 2,184.44 interest and is able to pay off the credit card debt within 36 months. If you are a businessman, you could use this money you saved to invest in your business and make more money.

A survey has been done in Malaysian stock market between year 2000 to year 2005, there were 689 counters double their values. If you invest RM 1000 and if your money were to double 10 times, you will become a millionaire.

With the saving of RM 2,184.44, what will happen to your investment if you were to direct this fund to the stock market?

1. RM 2,184.44
2. RM 4,368.88
3. RM 8,737.76
4. RM 17,475.52
5. RM 34,951.04
6. RM 69,902.08
7. RM 139,804.16
8. RM 279,608.32
9. RM 559,216.64
10. RM 1,118,433.28

You will become a millionaire the 9th times when you roll your money. So, money can grow if you know how?

If your debt is more than RM 10,000, you will be able to save more money if you were to engage with easy payment plan (EPP).

Let me give one more example.

Suppose you are holding a bank Credit card and your limit is RM 10,000. Your outstanding amount is RM 8000. With this RM 8000, you are paying 1.5% interest per month and yearly interest charged is 18%.

If you were to take up an easy payment plan, you could negotiate the interest rate to as low as 6.7% and you only pay a monthly payment of RM 266.67. In other words, you are saving 11.3% per year.

If you were to do a cash withdrawal of RM 10,000, the bank will charge you 5% cash withdrawal fee and 18% interest coming up to 23% for the first year.

Again, if you were to negotiate with the financial institution, you can arrange to secure the interest rate to 6.7% per annual for a duration of three years. In other words, you monthly fixed repayment will be RM 333.33 and you can pay off your debt in 36 months.

When you signed up for the easy payment plan, you will not see your outstanding of RM 8000 in your bank statement, instead every month you will see EPP 1/36 RM266.67, EPP 2/36 RM 266.67, EPP 3/36 RM 266.67 and so on and you just pay the outstanding amount.

There are 15 financial institutions than can do the easy payment plan.