How to Handle the Outstanding Balance of Your Credit Card?
By:  Joseph Chua     |     08 August 2014

By paying your credit outstanding balances in full, it means you can enjoy an interest free period of about 20 days for all your transactions. However, if partial payments are made, you will automatically lose this offer. Even if the outstanding balance involves less than RM 1.00, this partial payment will cause the loss of the interest free period.

You will be paying more interest for a longer period if you make only the minimum payment each month – 5% of the outstanding balance or RM 50.00 whichever is higher. Bear in mind that paying only the minimum of 5% of your credit card outstanding balance can result in a huge debt because of the interest chargeable and its compounding effect. So be prepared that over time you will begin piling up a huge outstanding balance if you choose to only pay the required minimum amount.

Pay your credit card in full so that you are free from credit card debts and you will not be haunted by credit card interest. If you are not careful with your repayments, you might end up with overwhelming credit card debts. To prevent things from becoming bad to worse, you can ask your card issuer for a waiver of interest and finance charges and restructure the outstanding amount into a term loan with affordable repayment terms.

Besides, you can also refer to the Self Help Guide: Debt Relief Plan of Agensi Kaunseling Dan Pengurusan Kredit (AKPK) at its website www.akpk.org.my or call its toll free number 1800-88-2575. You may also want to consider joining AKPK’s debt management programme.

In conclusion, try to pay off your credit card outstanding balance in full and on time. Otherwise, you might want to switch to debit cards instead as payments for your transactions are deducted directly from your bank’s savings account.


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