Let’s Talk About Credit Cards: “Don’t Pay Just the Minimum Amount Due”

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Let’s Talk About Credit Cards: “Don't Pay Just the Minimum Amount Due”

Yes, we understand that credit cards often come with a bad reputation but it’s mainly because many of its users do not know exactly how they work, are not financially disciplined and do not plan their spends. The fact remains that if you use them well, you’ll not just stay away from the penalties (which can be pretty steep) but also manage your money better and maximise the value of your spends with benefits like cashback and rewards.

So read on if you want to up your credit card game in order to make the most of them!

In the opening part of Episode 2 of our video series Let’s Talk About It, our super cool hosts Illi, Virgel and Darwin speak to Aaron, better known as mr-stingy, the man who runs the popular “optimisation” blog with the same name.

Related: 10 Important Tips to Steer Clear of Credit Card Debt

In this chapter, “Mr Stingy” gives out a number of meaningful tips about credit cards and tells our viewers how they can work towards ensuring their credit cards don’t hurt them. The questions discussed include “Have you ever been in a situation where you had to use your credit card to get out?”, “Are credit cards risky?”, and “What is the most important thing to know before applying for a credit card?

Check out all the cool answers and important tips shared by “Mr Stingy” in the video below. Don’t miss an interesting tip towards the end of the video on how to get rid of your credit card’s annual fee:

In the video “Mr Stingy” delves into the popular opinion that credit cards are risky and underlines that discipline, knowledge and planning are a must to realise a card’s full potential. “Credit cards are like tools..like hammers and knives…that can be used well,” he says, adding, “but if you don’t know how to use them you’ll hurt yourself”.  

Related: 5 Smart Things to Do if You’re Falling Behind on Credit Card Bills

“Many people don’t realise that if they don’t pay the full monthly balance in time they’ll have to pay 18% interest, plus other late charges. But if you pay the bill in full on time, and not just the minimum amount due, you save up on interest charges”, he notes. “There’s also the risk of people splurging, and doing uncontrollable spending. Work on your discipline and don’t let yourself get hurt by a credit card,” he points out.

Stay tuned for more such videos in our ongoing series Let’s Talk About It!

Watch Episode 1 Part 1: The Importance of Delayed Gratification

Watch Episode 1 Part 2: “Technically, a Credit Card Is Free…”

And do let us know if you want our experts to cover any specific personal finance topic in our upcoming episodes by commenting on our YouTube or Facebook page.

In the meanwhile, give a read to our BBazaar Malaysia blog to get more tips and hacks on a number of interesting topics like credit cards, loans, budgeting, personal finance, investments, insurance, real estate, career, travel, weddings, making money, and our favourite — All Things MALAYSIA!

Looking for a credit card? Check out some of our top picks:


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