INTRODUCTION

If you are a die hard long time follower of mine, you will remember that I used to promote 0% Balance Transfer initially, BUT then warned all of you not to utilise it as it is a debt and more importantly will give you the impression that you have more money to burn than you actually have….. which will lead to you burning even more money.

I suggest you click the link to the articles below and understand the Pros and Cons of performing 0% Balance Transfer or even opting for 0% Installment Plan with your credit cards.

0% Installment Plan Is A Trap – CC 164 – In this article I will show you a couple of examples of how people end up in the shit hole of debt (buying smartphone with 0% Installment Plan is one way) and how you can benefit from 0% Balance Transfer Plan if you are in debt but you must have the discipline not to use your credit cards until you are debt free again.

Buy Now Pay Later – Credit Cards 0% Installment and Balance Transfer Plan – as I always say, if you don’t have money today what makes you think you will have money tomorrow? This Buy Now Pay Later is another trap where many pay interest and become poorer and spiral deeper down the bottomless shit hole of debt.

Most people are uneducated when it comes to their personal finances and will end up in debt!!! Well, this is because our education system does not teach us how to be debt free AND not to be greedy and fall for scams!!! Yes, if you are greedy for easy money you will be scammed!

Most so called finance websites promote credit cards, 0% loans or personal loans because they get commission. And sometimes greedy people will also happily give their personal details to 3rd parties (either via online or in person at the malls) and when their personal information are sold or stolen (by now you would know that many websites have been hacked and personal info stolen), who is to be blamed for being greedy?

There are very few Personal Finance Bloggers that teach you how to not be in debt but to earn money legally and to understand so called financial products and their related risk. I can only think of 3 bloggers that actually teach you how to be debt free – (1) Ringgit Oh Ringgit, (2) Mr. Stingy and (3) yours truly, GenX GenY GenZ (Generations of Our Time).

I have reiterated over and over again, only opt for 0% Loan (Balance Transfer, 0% Easy Cash Installment and/or 0% Installment Plan) if and only if you have the money already in your bank account(s) to pay off the debt. This 0% Installment Plans are traps – the moment you are unable to pay an installment, i.e. settle your Credit Card Statement Balance IN FULL prior to the Due Date, you will then be imposed 18% or more in interest!!! How much interest or dividend can you earn from your investment that guarantees your Principal Sum? Definitely less than 8% – which means the 18% p.a. interest is damn high and will make one poorer! And the uneducated people will tell you that 1.5% interest per month is “low” when in actual fact when you annualize it, it is 18%!!!

In the above paragraph, there is a coded message if you comprehend the contents – if you want quick easy money more than 8% p.a. interest, most probably (99.9%) your Principal Sum is not guaranteed – which means you must be prepared to lose everything!!!

However, for smart people with cash in the bank, we can earn some money from utilising 0% Balance Transfer or 0% Installment Plan on condition they have the money to pay for their credit card Statement Balance in full prior to the Due Date. For example, say you are purchasing a Rolex that cost RM120K, you can then opt for 0% Installment Plan or 0% Balance Transfer Plan; but my die hard long time follower will of course not opt for Maybank 0% Ezy Pay Installment Plan with their AMEX card as we only earn 1X TP or 1X MR when we opt for Ezy Pay (not applicable for Maybank KrisFlyer AMEX). So with 0% 12 months loan (most of us will use our AMEX and perform BT), we only need to pay RM10K per month and the balance can be deposited into FD or Money Market to earn about 3% or more from interest. Effectively we may earn below RM2K for the 12 months hassle. So in other words, for amounts less than RM10K don’t waste your bloody time utilising 0% Loan as you will earn less than RM200 but have headache associated with the 0% Loan!!

Once again, please note that 0% Balance Transfer, 0% Ezy Cash Installments and 0% Installment Plans are DEBTS designed to make the banks richer. You think the banks are so generous to offer you 0% Loan? You have been warned and you are to proceed with your own risk (if you do not understand the risk then most probably you are either in debt or will be soon) when you perform 0% Balance Transfer.

So if you are ready to be in debt, please click here to Page 2 to continue reading….