This is good news for everyone who would like to cut down their costs of credit card payment. While some of us pay our bills on time, some simply just could not afford to and prefer to spread it over a period of time. But as you delay in your payments, the more will you pay to the Bank. So if you purchase an item that costs you RM100 at the counter, you may end up paying RM125 if settle the amount within 6 months after purchase. There is a solution to this increasing costs for delayed payments i.e. through a balance transfer programme. Through Affin Bank Preferred Credit Card Programme, Affin Credit Card holders are able to transfer their outstanding balances from other banks to their Affin Credit Card Account and spread it over 12 months at zero percent interest rate! Pretty neat isn’t it? A quick check at other major local banks offerrings reveals that there are nothing comparably low such as what is offered by Affin Bank. This is truly a good deal. Affin is charging only 9.99% of APR, which is currently the lowest in the market.

>>> If you would like to learn more about Affin Bank Preferred Credit Card Programme, you may download its FAQ by clicking this link.

Beyond 12 months, perhaps you should be looking at Maybank Balance Transfer Programme. Maybank is charging about 0.375% per month for 24 months repayment period and 0.413% per month for 36 months repayment period.

>>> For more details on Maybank Balance Transfer Programme, kindly click here!

There is also a term coined in the States i.e. Credit Card Tarts, where someone will shift their balance from one “0%” interest balance transfer programme to another “0%” interest balance transfer programme simply because the former has expired. If you are alright with hassle that comes with this, jumping from one programme to another certainly can stretch your zero % interest period more than 12 months. Amongst the top banks in the market that offers zero % interest period are:

• CIMB Bank - 0% for 6 months
• Maybank - 0% for 3 months

Here at Ringgitsavers.com, we have conducted a comparison and see which one of this four is the best provider in terms of speed, reliability and subscription price as well as refund policy. Check out the results below:

1. MAXIS BROADBAND:

• Speed and Reliability: Speed fluctuates from 500kb to 1.2 Mbps during off peak times. However this is still considered reliable by Malaysia’s broadband standard. There were no instances of disconnectivity throughout the 3-hour testing. Coverage is superb within the Klang Valley, and the major cities in Malaysia such as Johor Bahru, Kuantan and Ipoh. For the rest, you could be running on GPRS.
• It’s not unlimited!: But please beware of its fair use policy which states that: Each customer’s total usage per month shall NOT exceed 3Gbof data volume transmitted (total upload and download usage). This is to ensure that no individual hogs the bandwidth at all times. If a customer wishes to use more than the volume permitted, a written request should be made to Maxis. Maxis reserves the right to reject the said application or charge for any additional data volume transmitted from what is already allocated. You can read more about this in detail here. My experience indidates that after usage in excess of 3Gb, your download speed will be somewhat restricted by 30%. At first I thought this was due to high traffic using the line but when I tried to surf during in the wee hours such as 3am in the morning, I noted the same speed for my access.
• Price: Starts from RM118 if you are a Maxis Postpaid user, if not you will charged RM138 per month.
• Refund policy: There is 7-cooling off period, within which you will be fully refunded. If you decide to discontinue with the service after the 7 days, you will need to pay a penalty of RM200. However, if you have used the service for 12 months, the RM200 penalty is waived. No minimum contract is required. You pay by monthly not 12 months in lump sum just like izzinet.

2. CELCOM BROADBAND

• Speed and Reliability: It’s extremely damn slow, at times it’s even slower than the turtles. Connectivity-wise, no problem. Speed is less than 200kb when tested during off peak period.
• It’s not unlimited: All monthly unlimited broadband subscribers are allocated 5GB of data volume per month, after which the speed could possibly be capped.
• Price: Basic plan starts from RM99 per month (384kbps) and Advance Plan for RM129 per month. In addition, you have to pay RM499 for the modem. This is quite a significant investment to be made upfront.
• Refund policy: None. A penalty RM350 will be imposed if contract terminated before 18-month period. Are you kidding me? You have spent RM499 on modem and you will be charged RM350 for the penalty. A total close to RM850 just to try out its service? No wonder there have been many complaints about it. Watch out!

3. U-Mobile:

• Speed and Reliability: Since there are still not money users and coverage, speed is pretty fast and reliable. Upwards of 800kbs.
• It’s not unlimited: Maximum of 5Gb of data transfer per month.
• Price: RM78 per month, RM 50 activation fee.
• Refund Policy: 8-day cooling off period where no penalty will be imposed and you will be fully refunded. U-Mobile has the longest contract amongst the four i.e. 24 months. Should you decide to terminate your contract after the 8-day cooling off period, and before the 24-month period, you have to pay RM79 (the cost of the broadband modem that you get to keep - but why you would want to keep the modem if you are switching to streamyx still puzzles me) and RM78 of the current month’s access fees.

Streamyx is by far the best if there is no real need for you to go wireless. WiMax service in MALAYSIA led by Green Packet Services will be slightly delayed and only expected to be operational in late August. So just think about it!

Getting out of debt involves several stages:

STOP USING CREDIT CARDS!

This may seem self-evident, but the reason your debt is out of control is that you keep adding to it. Stop using your credit card. Don’t finance anything. Cut up your credit cards now!

That last one can be tough. Don’t make excuses. Destroy them. Stop rationalizing that you need them. You don’t need them for safety net, convenience etc. I was out in Bali, Indonesia and guess what the ATM machines there accept a Maybank card for money withdrawals (it has a “Plus” sign). SO the fact is you don’t need a credit card when travelling overseas! Also you may be saying that you need credit cards to book Air Asia flight tickets online. Well my answer to that is you can always use debit cards such as the one offered by Tunemoney.com or those issued by Public Bank and AmBank. Debit cards are like credit cards but they work on a prepaid concept i.e. you need to put value on it before you can use the card. They still have that visa or mastercard signs!

Credit cards are a trap. They only put you deeper in debt. Later, when your debts are gone and your finances are under control, maybe then you can get a credit card.

After you have destroyed your cards, halt any recurring payments. If you have a gym membership, cancel it. Most of us have gym membership running but hardly go. Any necessary recurring payments such as utility bill payments can be made online through maybank2u or cimbclicks! So you don’t need credit cards for this purpose at all!

ESTABLISH AN EMERGENCY FUNDS

For some, this is counter-intuitive I.E. WHY SAVE BEFORE WE COULD ACTUALLY PAY OUR DEBT? The answer is simple! Because if you don’t save first, you’re not going to be able to cope with unexpected expenses. Since we have cut up all of our credit cards, you need emergency funds! So, how much should you save really? Ideally, you’d save $1,000 to start. This money is for emergencies only. It is not for shoes. It is not for a Playstation 3. It is to be used when your car dies, or when you break your arm in a touch football game. Keep this money liquid, but not immediately accessible. Say e.g. put it in an Amanah Saham Bumiputra (ASB) or a fixed deposit account (which can be done online). Don’t link it to your ATM card! When emergency arises, you can easily withdraw it at the counter.

PAY OFF YOUR DEBT

Do a balance transfer to credit company that charges you low interest rates. Don’t pay minimum balance only. Start changing your lifestyle so that you have more money to pay off your debt. Defer any fancy holidays. Cook at home instead of going out eating.

CURB YOUR SPENDING

While you work to spend less, do what you can to increase your income. If possible, SELL some of the stuff you bought when you got into debt. Get an extra job. May be you would like to consider reading how to become as successful as Adam Khoo who became a millionaire at 26.

]]> http://ringgitsavers.com/2008/06/15/how-to-get-out-of-credit-card-debt/feed/ http://ringgitsavers.com/2008/06/11/is-tunehotel-really-the-cheapest-hotel-to-stay-in-kuala-lumpur/ http://ringgitsavers.com/2008/06/11/is-tunehotel-really-the-cheapest-hotel-to-stay-in-kuala-lumpur/#comments Wed, 11 Jun 2008 06:51:04 +0000 admin http://ringgitsavers.com/?p=8 At first I was a bit sceptic about the offer. At RM9.99 per night, I hardly think they will be making any money running the hotel business. Say that they have 100 rooms, so that works out at RM999 per night or XXX per month.

COMPARATIVE STUDY

Had a chance to stay at both hotels. They are both new and are brightly coloured. I compare the rates for check-in on 12 August 2008 and check-out on 13 August 2008 (both are weekdays)

Cititel Express:

1. You need to book online to get their best rate of RM 98 per night or RM 108 including breakfast.
2. Classy room complete with ASTRO, hot shower, free air conditioned and wardrobe.
3. Big enough room for you to move around.
4. Room service available
5. You feel like staying in a 5-star hotel minus the fancy restaurants, clubs and swimming pool.
6. Cancellations will be refunded fully provided you do it 48-hours before check-in.
7. For more info of what you will be getting or not, you can go to their FAQ page here.

>> Book Here

Tunehotels:

1. RM9.99 - you can hardly get this rate! The best rate that I got was RM 47.00 + RM 10 (admin fee) = RM57.00
2. No TV, so it will bore you out of your mind after a few minutes in the room. You just have to go out! The room is only meant for you to sleep.
3. No air-con, you can activate the air-con using a prepaid card that you can obtain at the counter. But they have a ceiling fan in every room.
4. Room is very small and fee stuffy at times.
5. No room service available so you have to bring your own iron!
6. No breakfast given but there is a shop that sells food on the ground floor.
7. Reminders:

• You can make cancellations 48 hours before check-in but cancellation charge will be debited to your account.
• No refunds made on cancellation, instead your money will be held in their account for future bookings with the hotel. This is why they require to register during booking so that they can keep track of your profile.

>> Book Here

VERDICT:

I wouldn’t mind staying in Cititel Express for extra bucks. I like to relax and watch tv at the same time. But if you are in KL for a tour visit and don’t intend to stay in your hotel room for long, your better option is Tunehotel. But the later you book it, the higher the rate (applies to both hotels as the booking is done online). Also you can only get the rate stated above for Cititel Express if you book online. If you book through phone or walk-in the rate is almost double.

In terms of parking space, only Cititel offers parking space (limited). But if you are happy with outside parking space can help, you can still count onTunehotel as there are plenty of spaces around the area. Cititel is located in Chow Kit area of Kuala Lumpur, so you can’t expect or would want to park your car outside.

Of course there are other budget hotels in Kuala Lumpur with fixed price. Some of the options below RM100 nett are:

• SELESA INN (1 star) - old looking hotel in front of MAJU JUNCTION 03-26948589

In retrospect, I guess it’s better for me to also take a peek at what’s on offer by MALAYSIA AIRLINES and possibly JETSTAR and TIGER AIRWAYS that have started flying from KUALA LUMPUR. For some of you who are not sure what Jetstar and Tiger Airways are, well let me give a little rundown of these two airlines:

Jetstar

Jetstar Airways is a low-cost airline based in Melbourne, Australia. It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue. Currently Jetstar is flying out of KLIA to various destinations mostly in Australia such as BRISBANE, GOLD COAST, SYDNEY, MELBOURNE as well as SINGAPORE.

Tiger Airways

Tiger Airways Private Limited is a low-cost airline based in Singapore, with its primary hub at Singapore Changi Airport. It’s owned by Singapore Airlines (SIA). Currently Tiger Airways is flying out of Low Cost Carrier Terminal (LCCT), Kuala Lumpur to Singapore. (sidenote: Wonder why it chooses tiger as the name, Singapore has always been associated with MERLION, the lion. Tiger is more MALAYSIAN, hmmh).

Back to our original story. Let me present a comparative case study between Air Asia and Malaysia Airlines for travel to BALI, Indonesia in December.

FLIGHT TICKETS

AIRASIA: LCCT, Kuala Lumpur to Denpasar, Bali (return) - 2/12/08 (flyout) and 5/12/08 (flyback). Cost: RM490 (including airport tax, surcharges, one checked bag (RM3), one hot nasi lemak (RM7))

MALAYSIA AIRLINES: KLIA to Denpasar, Bali (return) - 2/12/08 (flyout) and 5/12/08 (flyback). Cost: RM745 (including airport tax, surcharges, bag allowance, meal on board, fixed seat). No mileage accumulation.

Both offer no compensation/refund for cancellation or allow change of dates.

CONCLUSION: I guess it’s better off to fly with Airasia still.

COMPETITION HEAT - ADVERTISEMENTS FROM TWO OF MALAYSIA’S BIGGEST AIRLINE COMPANIES….

MALAYSIA AIRLINE SAYS THEY’VE GOT MORE

AIRASIA SAYS YOU DON’T NEED ALL THAT! BLINK BLINK!

DON’T

• Use your credit card to make everyday purchases. Items like food, clothing, and gas shouldn’t be purchased with a credit card. Using your credit card as a substitute for cash is a habit that can quickly lead to debt. For ordinary purchases, leave your credit card in your wallet and use cash or debit card instead.
• Get into the habit of making minimum-only payments. Making only the minimum payment each month increases the amount of time it will take to pay off your debt. It also increases the amount of interest you end up paying. To pay your debts off quicker and cheaper, you should pay as much as you can on your balance each month.
• Use your credit card to buy things you can’t afford. Living a borrowed lifestyle is the quickest way to get into debt. If you can’t afford a purchase today, chances are you won’t be able to afford it tomorrow, or even next month.

DO

• Stay within 30% of your credit limit. A large part of your credit score considers the amount of debt you have. Keeping your balances low helps you maintain a good credit score. Not only that, lower balances are easier to manage than those that are higher.
• Negotiate a lower interest rate. Especially if your current rate is higher than offers you receive. Your interest rate determines how much you pay for carrying a balance on your credit card. Evaluate the interest rate on your credit card periodically to be sure you are getting the best deal possible.
• Credit surfing, meaning transfer your outstanding balance to credit card with lower interest rate. Close out the old credit card!

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