Monday, November 05, 2007

Refinancing credit card borrowings

Some young people spend too much money using their credit cards. They accumulated a lot of debts and had to pay high interest on the borrowings.

This is one way to get out of this heavy interest burden. You can approach your cooperative society to take a loan to pay off the credit card debt. The interest payable on the loan from the cooperative is at a modest rate, less than one third of the rate charged by the banks.

Be honest. Tell your cooperative society about your credit card debt. Assure them that you will make a genuine attempt to clear off the debt in installments, and that you will not borrow again on the credit card.

If you have a steady job and a good income, your cooperative society should be willing to help you.

You may be able to approach another bank to refinance the debt at a lower rate of interest. Some banks are keen to provide this assistance to acquire you as their customer.
Posted by at

5 comments:

hongjun said...

Just a word of caution. If you have history of late payment, your record will be sent to the Credit Bureau. This may affect your chances of getting a loan in the future.

Try to keep all receipts so you can keep track of your expenses. Better still, use credit cards only on necessities and cash on luxury items. This is just another way to control your expenditure habits.

hongjun

November 05, 2007 8:41 PM
Unknown said...

Why MOE does not have a teaching topic on financial planning for e young so that they can use $ wisely instead of schs having ridiculous ccas that make no sense for e future..

November 05, 2007 11:45 PM
Thomas Phua's Blog said...

Is education becoming so expensive for average Singaporean parents?

Many parents used their CPF to fund the university fees for their children.

When the children graduate, I thought the children will use their CPF to pay back the parent's CPF, I understand it is cash payment back to parent's CPF.

Many start work with debts to pay. And without practical living, credit card seems to be the solution to spend future money, but many fail to realise the pitfall of the interest charged for roll over.

- Thomas Phua

November 06, 2007 9:58 AM
Anonymous said...

I believe that there are enrichment programmes in schools that teaches financial literacy at a simpler level for students to understand.

However, I also believe that financial planning education also start from the home. Some adults teach their children the wrong values.

November 06, 2007 10:35 AM
Unknown said...

Why should parents folk out their cpf to fund their kid's education? that should not be e case..its not that expensive if one takes e common route in Singapore but if 1 goes overseas than thats a diff story..

November 06, 2007 2:01 PM

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive