Jessicca8 smart ways to blow your bonus: Eliminate Debt
December 4th 2006 06:00
Extracted and compiled from CLEO magazine 2006
Surely the top of the list of any sane woman (or man) of the 21st century come bonus time is getting out debt. After all, it will save you a whole lot of headache, heartbreak and money. However, there are some things to think about before you dump everything into your credit card bill.
First, consider the state of your emergency savings – although being credit-card debt free is important, what is even more crucial is that you have a small stash of cash on hand that you can access quickly in times of need. The recommended amount is a minimum of 10 percent of your annual pay packet, but anything is better than nothing.
The next thing to consider is whether you’re willing to snip your credit card and trade it for a debit card – same convenience, minus the risk. If you have a history of spending more on plastic than you do in hard currency (and who among us do not? Come on, don’t be shy to admit it), then getting rid of your credit card once and for all is the only way you’re going to stay debt-free. Else, once you see your zero balance statement, you’re going to feel like you’re in control of everything and return to that easy habit of paying for things with your signature… and next year you’ll be scrambling to find this article again.
Here is a reliable Malaysian website that might help you understand more about managing debt. Feel free to visit www.bankinginfo.com.my for more details.
Personal note:
You can really be sure about that zero amount of your credit card statement. That tiny voice of “Oh, I can feel pressure free now and start spending” will start singing by your ear side if you are not strong enough to in control that sense.
“What about those yummy points you have accumulated?”
Well to be honest, you can never be content with the points you have in your credit card to redeem prices. Once you have that enough number of points you might wanna eye for something better and it cost a lot more points. And to be sensible, ladies and gentlemen, if you really see the true value of the items, are you sure that they are worth that much points for you to swipe your head off to get them? It might actually be cheaper if you paid cash for them.
Still, what happen to the points you have accumulated? Well, there are always nice vouchers that you can redeem to treat yourself and your family a nice luncheon or dinner, or even a nice SPA to pamper yourself or for your love ones; rather than stack up with gadgets that you might not need in your room / house.
First, consider the state of your emergency savings – although being credit-card debt free is important, what is even more crucial is that you have a small stash of cash on hand that you can access quickly in times of need. The recommended amount is a minimum of 10 percent of your annual pay packet, but anything is better than nothing.
The next thing to consider is whether you’re willing to snip your credit card and trade it for a debit card – same convenience, minus the risk. If you have a history of spending more on plastic than you do in hard currency (and who among us do not? Come on, don’t be shy to admit it), then getting rid of your credit card once and for all is the only way you’re going to stay debt-free. Else, once you see your zero balance statement, you’re going to feel like you’re in control of everything and return to that easy habit of paying for things with your signature… and next year you’ll be scrambling to find this article again.
Here is a reliable Malaysian website that might help you understand more about managing debt. Feel free to visit www.bankinginfo.com.my for more details.
Personal note:
You can really be sure about that zero amount of your credit card statement. That tiny voice of “Oh, I can feel pressure free now and start spending” will start singing by your ear side if you are not strong enough to in control that sense.
“What about those yummy points you have accumulated?”
Well to be honest, you can never be content with the points you have in your credit card to redeem prices. Once you have that enough number of points you might wanna eye for something better and it cost a lot more points. And to be sensible, ladies and gentlemen, if you really see the true value of the items, are you sure that they are worth that much points for you to swipe your head off to get them? It might actually be cheaper if you paid cash for them.
Still, what happen to the points you have accumulated? Well, there are always nice vouchers that you can redeem to treat yourself and your family a nice luncheon or dinner, or even a nice SPA to pamper yourself or for your love ones; rather than stack up with gadgets that you might not need in your room / house.
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