Credit Card Debt Explained With a Glass of Water


#1
How Minimum Payments won't get you out of Credit Card Debt.

Buying on credit is NOT always the best solution to your dreams.

As at Jan 2014, more then 250,000 Singaporean who have let their debts revolve for three months and are sitting on a financial time bomb. Imagine we are coming to the end of the year now. camera gear is not cheap and sometime I see this need to always "keep up with the Jones'" a scary sign of something bad that will be happening to them as you see how they are trying to justify buying better gear to get better shots.

A good reminder as we get to the "season" of spending and looking to buy that new gift for someone or gear(s) and use the so called 0% interest plan or outright credit card purchase.

[video=youtube;Vz05A6cP6Iw]https://www.youtube.com/watch?v=Vz05A6cP6Iw&list=TLqWqUnlaP9So&index=8[/video]
 

kei1309

Senior Member
Apr 12, 2010
7,312
23
0
Earth
www.facebook.com
#3
How Minimum Payments won't get you out of Credit Card Debt.

Buying on credit is NOT always the best solution to your dreams.

As at Jan 2014, more then 250,000 Singaporean who have let their debts revolve for three months and are sitting on a financial time bomb. Imagine we are coming to the end of the year now. camera gear is not cheap and sometime I see this need to always "keep up with the Jones'" a scary sign of something bad that will be happening to them as you see how they are trying to justify buying better gear to get better shots.

A good reminder as we get to the "season" of spending and looking to buy that new gift for someone or gear(s) and use the so called 0% interest plan or outright credit card purchase.

YouTube Link: https://www.youtube.com/watch?v=Vz05A6cP6Iw&list=TLqWqUnlaP9So&index=8
Well, it's the American system to live on borrowed credit ;)
 

petetherock

Senior Member
Oct 9, 2006
1,658
4
38
#4
Each time I see someone I know ask if they can buy something on credit, I tell him / her that it's a bad idea. Buy only when you have the money...
Buying with a card is ok, if you pay every month on time.
 

adamadam

Senior Member
Feb 9, 2004
3,637
0
0
32
Perth
www.flickr.com
#5
Nothing wrong with using credit card, as long as you pay the balance when it's due.
0% is good though, I use that feature! But as soon as it expires, I'm prepared to pay it off.
 

diver-hloc

Moderator
Staff member
Apr 17, 2007
5,213
13
38
Somewhere North
#6
Each time I see someone I know ask if they can buy something on credit, I tell him / her that it's a bad idea. Buy only when you have the money...
Buying with a card is ok, if you pay every month on time.
Nothing wrong with using credit card, as long as you pay the balance when it's due.
0% is good though, I use that feature! But as soon as it expires, I'm prepared to pay it off.

True... but provided that one could always pay on time monthly... :thumbsup:
 

Octarine

Moderator
Staff member
Jan 3, 2008
12,488
26
48
Pasir Ris
#9
Well, it's the American system to live on borrowed credit ;)
True American style would be to bundle the debts of your family and the entire neighborhoud and sell it off to someone else :) - not without some flowery description of future returns and give the entire crap a fancy and catching name.
 

Likes: kei1309

Octarine

Moderator
Staff member
Jan 3, 2008
12,488
26
48
Pasir Ris
#10
I like the 20% discount on petrol when using the plastic money. But paying on time is mandatory, otherwise the entire discount story goes off in smoke.
 

daredevil123

Moderator
Staff member
Oct 25, 2005
21,645
63
48
lil red dot
#12
Revolving credit is the worse credit one can use.

But paying it off every month does not make you a valuable customer to the credit card company. Good luck to you if you ask for your limit to be raised.
 

#13
Unless you missed a payment... if the item is $1200 and the installment is 12mth... that would be $100 a month of no BS payment... as long as you don't miss any payment of course...
Really? I always though that your installment will total come exactly to for example, $1000 for 10 months installment scheme. Each month you pay $100. So after 10 months that is $1000. thus 0% insterest. Yes?

But the amount you took out to make the installment of $1000 might not be charged interest for that 0% scheme but that amount STILL was from your line of credit. Say that line of credit is $10K but you never touch it. So you don't get charged but if you use $1000 for that 0% scheme should you not be charged for using that $1,000 from your $10K credit line?

So long you have not fully paid up regularly that $1k for the 0% instalment your $10k credit line is MINUS that installment amount at $9k. they will not charge you for that credit used? Money for nothing? hehe where got such a thin in this world.

Also with using credit card if you are late, there is not only late fee but you get whack with a higher interest for using your credit card for being a habitual late repayer. And they will not care for what reason you are late if this happen a little too many times.

AND your credit rating takes a dive. And this effect your other loans or future loans which can be in the form of a higher interest risk due to your record of irregular repayment. With a credit bureau set up now in Singapore by the govt, there is no where to hide if your credit record is less then good. Just $20 and any bank or leasing house can pull out your record.

There is also a growing trend and concern of foreign workers working here spending more then they are earning too and having too many line of credit. Materialism is nice and healthy here in Singapore

Over 250,000+ Singaporean who are over extended by 3 month is NOT A SMALL DEAL as some would say. Look at it this way, how many working class out of 3.4 million Singaporeans after you take out the retiree, kids and those who can not qualify for a line of credit? And of the over 250,000 Singaporean, how many are breadwinners?

Pay on time or try not to borrow. You have never or want to see the Dark Side of banking in Singapore and how they will take their money back from you.
 

Last edited:

Nikonzen

Senior Member
Nov 3, 2014
2,570
13
0
48
Oklahoma, USA
#14
True American style would be to bundle the debts of your family and the entire neighborhoud and sell it off to someone else :) - not without some flowery description of future returns and give the entire crap a fancy and catching name.
This is the Neo American style and it is indeed true to some extent. The smart wise frugal citizens have been squealing about this for years. And contrary to what you may hear or read not all Americans, in fact many, do not subscribe to nor do they need to live off credit. For example both my parents and my wife's parent are living more comfortably than the typical American. It is because they have never lived above their means. My dad has a wallet full of 0% 20K limit cards. Barely ever uses them just enough to keep them going and current. His philosophy about debt has always been the only thing you buy on credit is a house everything else if you don't have the cash you can't have the item or service. It is this set of Americans who always raise cain about the country being in such deep debt. I find it amusing because everyone says well we owe China all that money we should just tell them to kiss off. Back in the day they used to say well use Saudi Arabia's oil up then we'll still have ours. Oh well I'll use this credit card so we'll all get new Apple products for Christmas and we'll take out a personal loan at 7.5% over 7 years to pay for our vacation in June next year so we can do this at Christmas. The Jones have a debt to income ratio of 120% but they haven't been foreclosed on yet. This sort of mentality causes untold grief and misery ultimately (just like Victor said the other day greed just swallows all joy) and is one of the uglier undercurrents of capitalism (and anywhere there is capitalism) that colors America so screwed up.

And the gap between the haves and have nots widens...those with credit easy to get something with low payments...those with marginal credit require very little if any money down and higher interest rate..those with poor credit pay highest price with 21% interest rate. Substantial money down long term. Or as is true for many poor Americans, they do not have a pot to piss in so they can't have anything on credit. It is pawnshop time pawn all of your cameras and jewelry. Pay 240% interest! So if you are poor it seems they make so you are pinned down there.

The only real reason you need credit cards in my country is to maintain a high credit score to enable you to navigate the economy to the best advantage...to maintain your score...that is the only reason to have one.

First world problem eh? Nice problem to have because many folks of the world don't have access to clean water let alone plastic fiat power.

PS Sion...I answered your question how does one become elite in any country. Please send me 100 gold sovereigns... ;p
 

Last edited:
#15
This is the Neo American style and it is indeed true to some extent. The smart wise frugal citizens have been squealing about this for years. And contrary to what you may hear or read not all Americans, in fact many, do not subscribe to nor do they need to live off credit. For example both my parents and my wife's parent are living more comfortably than the typical American. It is because they have never lived above their means. My dad has a wallet full of 0% 20K limit cards. Barely ever uses them just enough to keep them going and current. His philosophy about debt has always been the only thing you buy on credit is a house everything else if you don't have the cash you can't have the item or service. It is this set of Americans who always raise cain about the country being in such deep debt. I find it amusing because everyone says well we owe China all that money we should just tell them to kiss off. Back in the day they used to say well use Saudi Arabia's oil up then we'll still have ours. Oh well I'll use this credit card so we'll all get new Apple products for Christmas and we'll take out a personal loan at 7.5% over 7 years to pay for our vacation in June next year so we can do this at Christmas. The Jones have a debt to income ratio of 120% but they haven't been foreclosed on yet. This sort of mentality causes untold grief and misery ultimately (just like Victor said the other day greed just swallows all joy) and is one of the uglier undercurrents of capitalism that colors America so screwed up.

And the gap between the haves and have nots widens...those with credit easy to get something with low payments...those with marginal credit require very little if any money down and higher interest rate..those with poor credit pay highest price with 21% interest rate. Substantial money down long term. Or as is true for many poor Americans, they do not have a pot to piss in so they can't have anything on credit. It is pawnshop time pawn all of your cameras and jewelry. So if you are poor it seems they make so you are pinned down there.

The only real reason you need credit cards in my country is to maintain a high credit score to enable you to navigate the economy to the best advantage...to maintain your score...that is the only reason to have one.

First world problem eh? Nice problem to have because many folks of the world don't have access to clean water let alone plastic fiat power.

PS Sion...I answered your question how does one become elite in any country. Please send me 100 gold sovereigns... ;p
Been keeping a close eye on that situation in the US and well ours is in no way different. Just taking a different route to it. The methods are NOT the same but sooner or late we are heading down that same train wreck if the mindset don't change.

Banking is a dirty word frankly.
 

Nikonzen

Senior Member
Nov 3, 2014
2,570
13
0
48
Oklahoma, USA
#16
The methods are NOT the same but sooner or late we are heading down that same train wreck if the mindset don't change.
And once people have got a taste of the poison it is probably to late. It is like a powerfully addictive drug. It becomes a habit then a bad habit and then a disgraceful habit. The mindset then is only changed by devilish things.

Famous Oklahoman named Will Rogers once said, "The time to worry about debt is before you get it not after you've got 4/5ths of it."
 

Last edited:

Octarine

Moderator
Staff member
Jan 3, 2008
12,488
26
48
Pasir Ris
#17
This is the Neo American style and it is indeed true to some extent. The smart wise frugal citizens have been squealing about this for years. And contrary to what you may hear or read not all Americans, in fact many, do not subscribe to nor do they need to live off credit.
That's a good reminder. After the data of American economy have been massages into fancy diagrams and some weird averages have been calculated it really looks for a moment as if every American has a wallet full of plastic and spends like nobody's business. Now, if my comment seemed to echo this then it was not intended. Rather it was a sarcastic remark about the banking industry and their handling of debts.
The only real reason you need credit cards in my country is to maintain a high credit score to enable you to navigate the economy to the best advantage...to maintain your score...that is the only reason to have one.
That's really odd. A good track record would show zero debts, looking from an old-school point of view. I recall some friends of mine working in US and having some trouble getting phone lines and other things - simply because they had no track records with credit cards. Salary slips and other documents showing really existing money did not work, only proofs of debts that had been made and repaid... So one needs to make debts to get recognized and rewarded. No wonder normal people do not understand this logic anymore.
 

Octarine

Moderator
Staff member
Jan 3, 2008
12,488
26
48
Pasir Ris
#18
And once people have got a taste of the poison it is probably to late. It is like a powerfully addictive drug. It becomes a habit then a bad habit and then a disgraceful habit. The mindset then is only changed by devilish things.
I would compare it to alcohol: use responsibly, sparsely.
 

diver-hloc

Moderator
Staff member
Apr 17, 2007
5,213
13
38
Somewhere North
#20
Really? I always though that your installment will total come exactly to for example, $1000 for 10 months installment scheme. Each month you pay $100. So after 10 months that is $1000. thus 0% insterest. Yes?

But the amount you took out to make the installment of $1000 might not be charged interest for that 0% scheme but that amount STILL was from your line of credit. Say that line of credit is $10K but you never touch it. So you don't get charged but if you use $1000 for that 0% scheme should you not be charged for using that $1,000 from your $10K credit line?

So long you have not fully paid up regularly that $1k for the 0% instalment your $10k credit line is MINUS that installment amount at $9k. they will not charge you for that credit used? Money for nothing? hehe where got such a thin in this world.

Also with using credit card if you are late, there is not only late fee but you get whack with a higher interest for using your credit card for being a habitual late repayer. And they will not care for what reason you are late if this happen a little too many times.

AND your credit rating takes a dive. And this effect your other loans or future loans which can be in the form of a higher interest risk due to your record of irregular repayment. With a credit bureau set up now in Singapore by the govt, there is no where to hide if your credit record is less then good. Just $20 and any bank or leasing house can pull out your record.

There is also a growing trend and concern of foreign workers working here spending more then they are earning too and having too many line of credit. Materialism is nice and healthy here in Singapore

Over 250,000+ Singaporean who are over extended by 3 month is NOT A SMALL DEAL as some would say. Look at it this way, how many working class out of 3.4 million Singaporeans after you take out the retiree, kids and those who can not qualify for a line of credit? And of the over 250,000 Singaporean, how many are breadwinners?

Pay on time or try not to borrow. You have never or want to see the Dark Side of banking in Singapore and how they will take their money back from you.

1st... My credit line is NOWHERE near $10k... LOL

2nd... I was talking about installment plans like those offer by Courts/Harvey/etc... which is as they are $1200 for 12mths = $100 a month for 12mth.

3rd... While my Credit limit has been reduce by $1200... I, like most S'porean who are blue collared workers, use mostly cash/nets. So, unlikely to affect much.... beside, I have more than one card.

4th... I person have a habit of NOT buying by installment until my last installment is well and over (above $1000)... and will NOT install if I don't have the backup saving to clear any debt by Credit Cards if I lose my job suddenly....


While I don't have the data to backup my claim... isn't overspending on luxury item without plan (aka, keeping up with the Joneses)... the reason most Sinkies fall into this credit debt problem ?? My old man sure did... spending his 'America Express' like no tomorr... a lesson I truly learned NOT to repeat. :think:
 

Top Bottom