Saturday, October 24, 2009

how the budget affects me


i actually have 7 credit cards. not that i need a lot of credit or that i collect them as a hobby. some times i get cornered at the mall & the guy gives me a sob story like he's been on his feet for hours & still hasn't got anyone to sign up his bank's credit card - free for 1st year, he will emphasise. some times i relent. some times it's because an umbrella or a shoe bag is thrown into the deal.

anyway, i only use one card, mainly to get petrol rebate. one more, i keep in case the 1st one got rejected.

as the govt will levy a RM50 charge per card annually from 2010, it makes sense to cancel the other 5. i'm ok with that. i just feel sorry for those guys & girls at the malls trying to get people to sign up.

they will be on their feet a lot longer from now on.

28 comments:

Yan said...

Great minds think alike! I have also more or less decided to give up some of the cards, principal and supplementary! But, I am sure to keep one supplementary card from the hubby to spend till he drops at times :)

Have a beautiful Sunday, doc! I am home in Sibu.

doc said...

Yan,

great minds? maybe more like sensible minds!

in poker parlance, the card you keep would be called a TRUMP card - the one that will win you the game!!

have a blessed fellowship with your family & friends in sibu!

ilene said...

Looks like many us would be affected by the imposition of RM50.00 per card and RM25.00 for supp. After taking all the freebies, now cancel all the cards! Good move!

You know DOC, that annoying commercial "You got cut or not?" can also apply for credit cards now! ha!

JoMel said...

I too would be forced to cancel 2 cards at least.. Curbing spending can be detrimental to the economy too.. Double edged sword.

msforty5 said...

credit cards are still one of the best cashless payment method ie for guaranteed accomodation, airfare, hospitalisation etc...

keep at least 1Visa + 1MasterCard
Banks will still find ways to dangle carrots to potential customers.

RM50 works out to 0.13cents per day so if you get certain banks which offers free annual fee waiver for life, better still :)

nothing comes free just another easy way for govt to earn $$

housewife9988 said...

At times, I was wondering who could do a better job for us citizens in the Parliament, Should send in some one to storm the budget!

Hope all the big fish of the banks will solve our problems soon! or else many of their customers will sure throw all cards away!

http:housewife9988.wordpress.com/ said...

Hope the top bank officials will do sthg for their customers! or else sure the banks r only wasting their time for recruiting card holders all those while!!!

doc said...

Ilene,

most of us with more than 2 cards would eventually cancel the subsequent ones. najib said the RM50 service charge is not a huge sum. why then did he impose it, i wonder?

i thought that P1 wimax commercial was hilarious, but yes, it would easily apply to multiple credit cards owners now.

doc said...

Jo,

seriously, i don't think this will curb spending on essential goods. people will still need to buy groceries/petrol but if they have low credit limit, then perhaps they will not spend on big-ticket items.

banks will lose out & the winner here is the govt who will pocket tens of millions of RM for nothing.

doc said...

ms45,

1 visa & 1 MC is what i plan to keep.(the Amex will have to go). with this service charge, there is no reason to have cards that require annual fees.

doc said...

Housewife9988,

there's nothing we can do about the budget. since the govt has increased personal relief & EPF/insurance relief, they need to take something back. we just have to live our lives sensibly & accordingly.

hopefully the banks will come up with new ideas to offset this extra expense for their customers.

AT said...

I believe the imposition of the tax on credit cards will be effective especially in controlling younger people from getting the cards and over spending. However, cards sales personnel are going to see their business evapourating!

iml said...

Finally a ligthter, slimmer wallet

doc said...

AT,

i think the younger ones will still apply but probably limit themselves to just 1 card, or 2 at most.

yes, those workers outsourced by banks to solicit for potential credit cards customers are going to realise very soon that they'll need another job.

doc said...

Iml,

both physically & figuratively, i'm sure!

reanaclaire said...

Agreed completely with what u said and I am taking the same action as u do... same idea..going to cancel my "many cards" n keep 2 just in case..

reanaclaire said...

yes, the annoying ad about the CUT is very cheap... it really turns me off and not on... terrible advert..

doc said...

Claire,

i'm certain many are also going to cancel the extra unused cards.

annoying ad, huh? i thought is was amusing although it won't convince me to change over.

foongpc said...

I only use one card and I am already complaining! Why do I need to pay RM50? The bank should be paying it! They earned so much already!

I don't think the Govt should charge people with one card. Maybe those with 3 or more cards can be charged.

And what is this nonsense about reducing 27% tax to 26%? That's only for the rich and the minority! Makes no sense to me!

doc said...

Foongpc,

actually, it's difficult to keep track of who has how many cards, so to be fair, perhaps, just charge RM8 each, just like an ATM card?

yeah, the 26% tax bracket only benefits those making about 100k a year.

suituapui said...

I have two - the 2nd one in case the 1st one gets rejected. Maybe I'd cancal one...or both! SIGH!!! If only the banks will absorb the RM50 - say, if expenses go beyond RM1,000...or RM5,000...

doc said...

STP,

same as i, but i read in the papers today some banks may absorb the service tax, probably for so-called "big spenders".

Michelle Mak said...

applies to debit card also arh?

Unicorn Girl said...

Thank goodness I only hold one card - the only problem now ....... is my supplementary card member - need to convince her in order to save the additional RM25.00 :)

doc said...

Mich,

no, the service tax applies only to credit cards.

doc said...

Unicorn girl,

if it's not too taxing, your supplemetary card holder should retain her card - for the rainy days!

zewt said...

dont worry doc, certain banks may choose to absorb it for you, trust me ;)

doc said...

Zewt,

thanks for the tip. i hope that includes HSBC & UOB.