Saturday, October 31, 2009

Credit Cards and Debit Cards are a Necessity


In this day and age, you would find it limiting to be still using cash alone. Even though cash may be king, cash would not get you very far unless you only intend to spend your life at home or just in your little town.

Some of us may not admit it but credit cards or debit cards are the answer to life beyond your comfort zone. They are no longer a luxury but a necessity in contemporary times. Our current environment calls for a safer, more secure means of carrying cash. You wouldn't want to carry those wads of cash shopping for big-ticket items like air-tickets or that diamond ring.

After that 5% government tax to be implemented from Jan next year, we would still require at least two cards, one Mastercard, the other Visa card - should one doesn't work; and a charge-card if you wish.

Credit cards are sometimes used to serve as loans but if the balance is not paid in a timely manner, one would have to bear a higher interest on that loan.

Debit cards are gaining popularity and for the public at large, it is a great way to curb impulsive spending. A prepaid debit card allows you to spend only when you have funds in your account making it an invaluable budgeting tool. More and more banks here are switching to prepaid debit cards replacing ATM cards.

If you are looking for a prepaid Mastercard or a prepaid credit card, check out the AchieveCard. They do not do credit check, no bank account is needed, they are safe and a secure card-issuer, and they approve 100% of the time.

11 comments:

  1. Credit cards offer convenience but with careful use of course. The problem with people is that they abuse this means of convenience. They conveniently swipe without having the means to pay.

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  2. i am always a prudent credit card user.. but the RM50 levy is really a lame idea the government is going to impose.. i will gonna cancel all those unnecessary cards soon - the Banks should be the first parties to be impacted by this..

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  3. Agree CC is a necessity not a luxury anymore and it's a must for me. I used them very often as I can keep track of my spending and also very useful for income tax submission. All I need to do is to refer to the 12 monthly credit card statements for the computation of all my expenses.

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  4. Mei Teng, I guess that's why they are called 'credit' cards, eh?

    SK, indeed a lame excuse to levy a tax. I'm sure banks will feel the pinch. We shall see. There is an interesting email in yesterday's online copy of The Star - a very well-written piece about the RM50 government tax. Go read it if you haven't already.

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  5. Cheahsan, that's a brilliant idea - make credit card stretch its worth, as a purchasing tool as well as a record-keeper. Thanks for sharing that.

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  6. I heard of a rich man who carries wads of cash in his pocket. He doesn't like to use credit card and pay everything by cash!

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  7. It is both useful and could be a harm if not used prudently! :D

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  8. Right Tekkaus a good servant and bad master kinda situation if go out of hands.

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  9. Foong, there are people like that. We have a family friend who used to carry a paperbag of cash around - lots of it.

    Tekkaus, it's not the card that's good or bad, it's the user. hehe..

    CheahSan, right on!

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  10. hmmm.. credit card is a matter of convenience, and like any other stuff, wisdom is need for the user.

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  11. Robin, so true. Thanks.

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