Personal Finance, Planning and Management to Wealth Creation

At Clic Finance, you are not going to find any get-rich-quick schemes nor multi-level marketing things for wealth creation. Instead, I will be sharing the information on personal finance knowledge and related topics.

I am personally love to acquire knowledge and skills in personal finance hoping to find answers to deal with debts, how to get out of it fast and how to manage loans to wealth creation and so on.... I could said there are people who get rich quickly, but the fact is almost anyone can get rich slowly and patiently.

In your journey to wealth creation, Don’t become obsessed with money and wealth. Always Remember! Money does gives you more options, but happy and balanced life makes your life worth living. Having lots of money does not guaranttee/mean your happiness in life. You happiness come the moment you receive the services or values that money can bring you.

Learn to have a balanced happy life in wealth creation with proper saving, investment strategies and spending planning.

May be by now you are asking youself: "How I am going to start or achieve it?"

It's simple, Take your actions now and remember failure is ok. A thousand mile journey always start with the 1st step. The sooner you determined to start moving toward your goals, the easier they are to reach. Everybody makes mistake, the important point here is, have you learned anything from it. Every mistake encountered makes you stronger and get closer to the door of success. It would be better to fail once than you have never tried it.

Lastly please note that everything you read here is my own informed opinion. Never believe everything you read, and always form your own conclusions.

Thank You.

Tuesday, April 7, 2009

How to acquire debts and still stay wealthy and happy? Part II

If you have outstanding in your credit cards, my advise to you is to stop using all your credit cards service and focus on paying off the debts.



For example:

There is a Credit Card Debt of RM1000.00. and with no new debts to be incurred.

Minimum payment: RM50 or 5% on the outstanding amount, whichever is higher.


You may study and use the below advice/suggestions to settle the debts.


Option 1:
1. If you are comfortable/decide to settle your debt with 2 years' repayments for what ever reasons.


2. Then you may just pay the minimum of RM50 monthly before the stipulated due date to get rid of the debts.


3. You will definitely be debt free after 2 years with total interest of RM190.00 paid.



Option 2:

1. If you think that 2 years is too long for you, then you need to plan for the maximum monthly repayment budget which must be higher than 5% to shorten the repayments period.


2. with the repayment of RM100 monthly before the stipulated due date of each month, then you will be debt free after 11 months with total interest paid RM89.00.



Option 3:

1. If you want to shorten the repayment period while still have some extra cash for enjoying life.


2. You may go for credit card balance transfer service offered by finance institutions. However, It is important to get the service that best suit you or provide you the significant saving in the interest paid to enjoy its benefits.


Option 4:
Another very good approach will be get a second part time Job to repay the debts.


Option 5:
Lastly will be the combinations of above options which works best for you.



Note:
Interest charges imposed on you on the outstanding balance which you have not paid your card issuer after the payment due date. These charges are usually calculated on a daily basis. With effect from 1 July 2008, interest charges will be on a tiered basis based on the repayment record of cardholders. The intention is to encourage and instill good financial discipline amongst cardholders. With effect from 31 March 2009, the tiered charges are as follows:

Repayment Track Record & Interest Charges
1. Cardholders who promptly settle their minimum payment due for 12 consecutive months
Up to 13.5% per annum
2. Cardholders who promptly settle their minimum payment due for 10 months or more in a 12-month cycle Up to 16% per annum
3. Others Up to 17.5% per annum

That's all for the time being, Coming soon, please watch out for part III on the term loan management.
Posted by Clic Finance / Eincome at Tuesday, April 07, 2009

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