Another Personal Finance tutorial by GenX @ http://www.GenXGenYGenZ.com
For years I have not performed a Balance Transfer Plan because I find it a hassle to keep track of the outstanding debt. YES! 0% Balance Transfer Plan is not FREE Money but a debt, i.e. liability. However, some of you who have been taught by me to utilize 0% Balance Transfer Plans have been consistently earning FREE Money with 0% Balance Transfer Plans for years, hahaha.
And just like I mentioned about 0% Installment Plans, 0% Balance Transfer is another trick by the banks to entice you to spend more. 0% Installment Plans of Balance Transfer Plans may result in giving you the false impression that you have more money than you actually do (because you failed to deduct the balance debt which is yet to be paid) and so you continue to swipe your credit card for other non-durable stuff and end up spending more which directly results in your savings shrinking even further.
If you are new to my blog, first thing you should do is click here now and read my FREE Credit Card Tutorial 2018 where you will be taught the basics of owning a credit card and most important of all, not to be tricked into the bottomless shit hole of debt.
After you have read the above, please click here to my Balance Transfer Plan Tutorial 2016 where you will be taught:
- How you can benefit from 0% Balance Transfer Plans – (1) To Earn FREE Pocket Money or (2) To Save On Interest Charges on your existing credit card Outstanding Balances.
- Pros and Cons of Balance Transfer Plans offered by various banks. Other than you needing to repay the 0% Balance Transfer, the other most important thing to remember before signing up with a Balance Transfer Plan is that you should choose one where the Repayment is in Equal Installments.
- If you refuse to follow my advise above and go sign up with say HSBC Balance Transfer Plan, you may be imposed interest on your new transactions as you are deemed to have Outstanding Debt in your HSBC Credit Card Account. Or in HLB Balance Transfer Plan, you are sure to be imposed some interest charges with their 0% BT because you can only settle the full Outstanding BT Amount a day after it expires or else you will be penalized!
Only after you have read the above two tutorials, then proceed to read the rest of the contents below.
The Best 0% Balance Transfer Plan for 1st Quarter 2018
In my article titled “FREE Money for You, Malaysian Youths 20-30 and even Kids 7-12 who can’t vote”, I mentioned:
Now, our government is also giving those with outstanding PTPTN loans 20% discount if you settle in full prior to 31 December 2018
Here are my thought on the above 20% discount.
- If you can afford to clear your outstanding PTPTN loan in 6 equal installments, it is worthwhile to consider paying off your PTPTN loan using a credit card.
- Then perform 0% Balance Transfer!!! If you are new to Balance Transfer Plans, please click here to my previous article on Balance Transfer 2016 to get some ideas on it. My advise is, always go with our local banks’ 0% Balance Transfer Plans with equal installments (currently Public Bank and AEON Credit are offering 6 Months 0% BT) and not foreign banks (e.g. HSBC and CitiBank).
- So, if you can settle in full, you will be able to save 20% off your Outstanding PTPTN Loan amount. And if you do some homework, e.g. contact PTPTN to liase/obtain more info, you should be able to use your credit card and then perform a 0% 6 months balance transfer.
After I published the above, my Project Team Member who shared with me about the PTPTN 10% discount with Direct Debit (Savings Account) shared with me BSN 0% 12 Months Installment Plan!!! I then shared it with my Project Team Members and then another one of them pulak reported on MBB and HLB 0% 12 Months Balance Transfer Plans.
So with 12 Months 0% Balance Transfer Plans, those of you who want to save 20% off your Outstanding PTPTN Loan have another option if you can’t afford to settle in full with a 0% 6 Months Balance Transfer Plan.
So here are the best 0% Balance Transfer Plans for 2018 to earn you FREE Pocket Money:
AEON CREDIT 0% 6 Months Equal Installments Balance Transfer Plan
PUBLIC BANK 0% 6 Months Equal Installments Balance Transfer Plan
BANK SIMPANAN NASIONAL 0% 12 Months Equal Installments Balance Transfer Plan
MAYBANK 0% 12 Months Equal Installments Balance Transfer Plan
All the above 0% Balance Transfer Plans require you to repay the debt in 6 or 12 months equal installments. And if you fail to repay in full any of the installments and whatever transactions you have made, i.e. your credit card’s Statement Balance prior to the Due Date, you will then be imposed the maximum interest rate (15% to 18%)!!! Therefore, this 0% Balance Transfer Plan is just another trick because the banks know that most people who perform Balance Transfer are those who are already in the shit hole of debt and the probability of them paying their Credit Card Statement Balance in Full is very low; thus, the bank will make more money (imposing 18% interest) and the card holder will go deeper into the shit hole of debt.
HONG LEONG BANK 0% 12 Months Balance Transfer Plan – Pay only minimum 5% of Outstanding Debt
Unlike Balance Transfer Plans that requires us to repay back the debt in equal installments, HLB BT only requires the debtor to pay minimum 5% of the BT Outstanding Balance/Amount monthly (or minimum RM50).
The Pro of HLB’s BT is, we can earn more pocket money when we deposit the cash allocated to pay our credit card bills into Fixed Deposit.
The Con of HLB’s BT is, for those already in the shit hole of debt, they will have a huge sum to settle at the end of the BT program.
Like I mentioned earlier, we will be penalized if we settle HLB BT Outstanding Amount earlier (Clause 12). Therefore, in order to save on the RM70 penalty, we can only settle in full the Outstanding BT Amount a day after the BT expires; which means we will be imposed 18% interest charges!!!
So, if you really want to sign up with HLB Balance Transfer, make sure you have only RM10 Outstanding ONE DAY prior to the BT expiry date and immediately settle in full the next day after the BT expires. You will still be imposed finance charges but with only RM10 Outstanding BT Balance, the finance charges will be insignificant. Call up HLB Customer Service to check/confirm the expiry of your BT Contract with them And immediately the day after the expiry date, call them again to confirm actual amount to be paid (there will be finance charges, so the earlier you settle the better) to settle once and for all and close the Balance Transfer Account (if you pay by cheque, you have to allow few days of interest charges too and if Giro maybe even an extra day or 2 in interest).
Seriously, for those who can’t settle their credit card Statement Balance in full monthly and then go perform a Balance Transfer, most likely they are just kidding themselves that they will be saving on interest charges if they do not drastically change their life style and stop using credit cards.
However, for those of us who settle our credit cards’ Statement Balance in full prior to the Due Date monthly, with a little bit of work/hassle, we can actually earn some FREE Pocket Money by utilizing Balance Transfer Plans.
For example, you want to buy a Rolex watch or GIA Diamond that cost RM48K with your Maybank 2 Card Premier AMEX Reserve and earn yourself 50K FREE Enrich or KrisFlyer Air Miles. Most probably the merchant will have a 0% Installment Plan for Maybank credit cards.
However, if we were to opt for the 0% Installment Plan, it means that RM48K will be earmarked towards our Credit Limit. For example, you have RM60K Credit Limit, but because you utilized the 0% Installment Plan, your available Shared Credit Limit for your Maybank Credit Cards will be reduced from RM60K to RM12K. Of course you can still call Maybank Customer Service and request for Temporary Increase in Credit Limit when you need it but it is not guaranteed.
So instead of opting for 0% Installment Plan with your Maybank 2 Cards Premier AMEX Reserve, pay for the Rolex watch or GIA Diamond in full with a single swipe. Then perform a Balance Transfer Plan with EQUAL INSTALLMENTS (I keep repeating this because it is very important so that you will not be imposed any interest as long as you pay the Statement Balance in full prior to the Due Date). You can then deposit the money allocated to pay for the Rolex or GIA Diamond into Fixed Deposit (say 1 month FD where after a month you will redeposit the unpaid money for the BT back into FD again and repeat until the BT Amount is fully settled) to earn FREE Pocket Money.
Here is another example how to utilize Balance Transfer to earn FREE Pocket Money where the merchant does not offer 0% Installment Plan. Say you used your AMEX Reserve to pay for 3 Business Class Air Tickets or pay for a wedding dinner costing RM48K, you will then earn yourself 50K Enrich Miles or KrisFlyer Miles. You then perform a 0% 12 months equal installment Balance Transfer. Therefore, instead of you paying off your AMEX Reserve bill of RM48K one go, you can then deposit the RM48K into Fixed Deposit and earn FREE Pocket Money!!! Assuming you deposit RM48K into a 1 month FD which pays 3% interest rate, where you will withdraw RM4K monthly to pay of the Balance Transfer Loan and redeposit the balance into another 1 month FD, by the end of the 11th month, you would have earned yourself about RM788 FREE Pocket Money!!!
As for earning pocket money, the Hong Leong Bank 0% Balance Transfer will earn you the most as you need to repay the least monthly until the very last month. What this means is you have more money to deposit into Fixed Deposit over 11 months period to earn more pocket money. However, like I pointed out, HLB’s BT is damn troublesome as we can only “close” the BT Account once and for all after the BT expires. More work but also more pocket money, hahahaha.
Another Personal Finance Tutorial by GenX