Advisory : Payment Method - Cash or Credit Card or Instalment Plan

[seiko.citizen]

These people as in Banks? Any example?

yes i was referring to banks. just take a look at your T&C on your CC contract. It will sure have the rate of interest if you fail to keep monthly repayments, which on some cards I believe it to be as much as 17% (Oz rates, not sure about sg rates) on the TOTAL amount borrowed, somemore the compounding method is different.

[Oceanklassik]

Triton Bro, paiseh I correct u again ya ... it shud be the other way around. If yr limit 1k and u get watch 1k on installment, your limit will be $0 immediately upon approval at the merchant. As u pay, let's say $100 monthly, your limit will be increase by that amount over time. So there are advantages when using CC for installment as u will never go over the credit limit.

Clear and concise. I understand better. Thanx!

[SabaDen]

yes i was referring to banks. just take a look at your T&C on your CC contract. It will sure have the rate of interest if you fail to keep monthly repayments, which on some cards I believe it to be as much as 17% (Oz rates, not sure about sg rates) on the TOTAL amount borrowed, somemore the compounding method is different.

Haha!!! That's the T&C for all transactions done on credit cards whether instalment or not mah ... thot that's pretty standard ya. Anyway, IMHO, if your card is not utilised at all and u can maintain full payment for just 1-2 installments, it's more practical to pay via this method.

[seiko.citizen]

Haha!!! That's the T&C for all transactions done on credit cards whether instalment or not mah ... thot that's pretty standard ya. Anyway, IMHO, if your card is not utilised at all and u can maintain full payment for just 1-2 installments, it's more practical to pay via this method.

i am all for utilising all my cards, but you need to be careful as the interest is damn scary (when i get it eventually!!)

[SabaDen]

i am all for utilising all my cards, but you need to be careful as the interest is damn scary (when i get it eventually!!)

Best is know your limit (as in financial capabilities) and always make full payment ... that way, you'll not incur any additional fee or interests. I've seen many young grads who immediately qualified for a card in S'pore once they start work and sign for things like it's free ... these are the types who'll go bust. They dun last a year ...

Anyway, the notion CASH is KING still stands ... just remember that and use your CC wisely. Either way you look at it, you'll be the winner if you are a good financial planner.

[Oceanklassik]

Again, very well said !

[seiko.citizen]

Best is know your limit (as in financial capabilities) and always make full payment ... that way, you'll not incur any additional fee or interests. I've seen many young grads who immediately qualified for a card in S'pore once they start work and sign for things like it's free ... these are the types who'll go bust. They dun last a year ...

Anyway, the notion CASH is KING still stands ... just remember that and use your CC wisely. Either way you look at it, you'll be the winner if you are a good financial planner.

nicely said ... my uncle told me that one young fella, recently married spent way beyond his means, and put everything on the cards (graduates earning good income), once the job was gone, the bills started to come in, and reality really hit hard.

[SabaDen]

nicely said ... my uncle told me that one young fella, recently married spent way beyond his means, and put everything on the cards (graduates earning good income), once the job was gone, the bills started to come in, and reality really hit hard.

Thanks ... just stating facts. I see it everyday.

Ya, some of them got stuck in the scenario u painted above, spend all on new house and the worst of all, peer pressure ... see friends got Rolex nia must oso have even though only means is CC. Never think of repayment consequences.

[Oceanklassik]

Ya I agree. It's the devil inside.

[feilong108]

Thanks ... just stating facts. I see it everyday.

Ya, some of them got stuck in the scenario u painted above, spend all on new house and the worst of all, peer pressure ... see friends got Rolex nia must oso have even though only means is CC. Never think of repayment consequences.

I am 1 of them lor....buy house now no moolah to buy rollies or other top notch watches....sigh.....

[SabaDen]

I am 1 of them lor....buy house now no moolah to buy rollies or other top notch watches....sigh.....

At least now u realised and hold back till u pay off, I hope. Have seen many who are unable to pay and yet get another card to wack.

Have patience my friend, that's the key ... house important, Rolex can wait. One day, who knows, you may own the watch which all of us are still dreaming and yet be in good health financially.

[feilong108]

Thanks for the advice...hahaha..now only can buy homages to ease the itch...lolz...at least the damage not so bad...hahaha....

[Darkangel]

At least now u realised and hold back till u pay off, I hope. Have seen many who are unable to pay and yet get another card to wack.

Have patience my friend, that's the key ... house important, Rolex can wait. One day, who knows, you may own the watch which all of us are still dreaming and yet be in good health financially.

I agree...house more impt than watch anytime Set ur priorites right

[seiko.citizen]

I agree...house more impt than watch anytime Set ur priorites right

even car less important then house. no matter what, house always top of the list. that is why until today my friend still ask me how come i havent upgraded my car yet

[feilong108]

haha..car 10 yr debt nia...house got 20 yrs...lolz...X 2 times