ISANG BARYA LANG PO!

Isang Barya Lang Po!
by Alex Milan

Beware of Plastic


Mag-ingat sa “plastic.”
Sa mga “plastic” na kasama sapagkat ang dulot nila ay malaking sakit ng damdamin dahil wala nga silang tunay na malasakit sa iyong kapakanan. Naririyan lamang sila kapag ikaw ay papakinabangan.

Mag-ingat sa “plastic.”
Sa mga plastic na basura na sumisira sa ating kalikasan at pumipinsala sa kabuhayan ng ating bayan.

Mag-ingat sa “plastic.”
Sa mga tuksong alok ng walang harabas na pagkaskas ng “plastic” na pera na kung tawagin ay CREDIT CARD marami nang kinabukasan ang nasira dahil dito. Marami ng taong naibaon ng buhay sa utang dahil sa “plastic” na ito. Ang panandaliang kasiyahang alok ng “plastic” na ito ay hindi sapat na kapalit ng pangmatagalang perwisyong dulot nito.
Sa karanasan ng marami, dahil sa maluwag na access sa credit mula sa mga credit cards na inialok ng libre, mas malaki ng halos 1/3 ang nagagastos ng isang tao kapag gumagamit ng credit cards kaysa gumagamit ng cash. Mas magaan kasi ang magkaskas ng plastic card, kaysa bumunot ng CASH. Sa totoo lang, may kasamang konting yabang ang pakiramdam kapag CREDIT CARD ang ginagamit na pambayad kaysa CASH.

But not to someone who fully understands how credit cards operate or should I say, how credit card companies make money out of your hard earned salaries.
Para madali mong makita kung gaano ka-attractive sa mga credit companies ang iyong ibinabayad na interest over the period of thirty (30) years, look at the table below. ( Please refer to the photo of column above). Assume you have Y50, 000 in your credit card debt at an 18% interest rate per annum. This would cost you about Y9, 000 in interest annually. Your annual interest of Y9,000 if invested at 18% over thirty (30) years will sum up to ¥6,744,475.

This is called the power of compound interest working for them at your expense.
Mas malaki pa ang kikitain ng credit card companies mula sa mga taong higit sa Y50,000 ang utang sa credit card. Kaya naman kabi-kabila ang nag-aalok ng credit cards at ngayon, maging ang mga kabataang estudyante ay target market na rin nila.

The use of credit card only offers three things:
Convenience - It is very convenient that you can have access to spending power anywhere and anytime.
Value - You earn points where you can eventually convert them to avail of special offers. Prestige – You have a credit card while the 50% of the population do not have.

But what are the disadvantages? You get to spend an average of 30% more than what you can do when you are spending on cash basis. You lose the opportunity to save and accumulate investment funds that you can invest over the years to avail of the power of compound interest working for you and not against you. Nowadays, it is more prestigious to operate on cash basis rather than on credit. Liquidity is more desirable and admirable.

We heard so many horror stories of people getting into the mire of using credit card to pay-off credit card minimum monthly payment! Once you are in this situation, the credit card companies are earning more from you because they can do finance charge, penalty charge and in the end your interest rates instantly will double up.

If you want to get on the road to FINANCIAL FREEDOM, you have to take control of your credit. If necessary, you need to perform PLASTIC SURGERY – cut the credit card into pieces, to put a stop on the temptation of using it if you are already paying a significant amount in interest payments on a monthly basis. In that way, you can use that payment to build your savings.

Sa huli nating pag-kukuwentuhan, iminungkahi natin ang pangangailangan ng RESERVE FUND for emergencies. Ngayon naman, tatahakin natin ang ikalawang daan patungo sa inaasam nating financial stability – ZERO CREDIT CARD DEBT. Pag nagawa mo ito ngayong taon na ito – isa kang dakilang WINNER. Dahil ang matitipid mo sa interest na binabayaran, maidadagdag mo sa iyong SAVINGS.

Paano ba mababayaran ang CREDIT CARD DEBTS?

1. Pagsikapang bayaran kaagad yung credit card na maliit ang balance sa lalong madaling panahon. Pag nabayaran mo na, gupitin mo na. Make sure you cancel the card so that you do not get charge for annual fees. Listen – do not keep it. Then, idagdag mo yung binabayad mo dati sa card nayan para bayaran naman yung susunod na maliliit na balanseng card hanggang mabayaran ng buo. Ulitin mo ang ganitong diskarte hanggang mabayaran mo na lahat.

2. If you have credit card with higher rates, look for companies that offer transfer balances facility offering lower interest rates. Pero tiyakin mo lang na walang dagdag bayad sa ibang paraan gaya ng transfer fee o annual fee at ang interest rates sa balanseng inilipat ay hindi mas mataas kaysa naka-advertise. Mag-ingat sa tinatawag na teaser-rates. Madalas may limit lamang ito then babawiin pagkatapos ng certain period. Bantayan din kung mayroon expiration date yung mga lower interest rates na ini-o-offer. Pagtiyagaan mong basahin yung maliliit na nakasulat na terms and conditions.

3. Consolidate all your credit card debts into one personal loan. There are financial institutions, i.e. banks, SSS, Pag-IBIG, Cooperative, that offer multi-purpose loans. You can use this facility to pay-off your credit cards. Normally, the interest rates and amortization of this loan are more manageable than your credit cards.

4. Stop using CREDIT CARD if you are not disciplined to pay in full when the statement comes.

5. Gumamit ng DEBIT CARD instead. Debit card is just like your ATM card, you can only use it when there is fund available. Your spending power is only limited to an amount up to ZERO. Unlike credit card, you have a negative balance that could go higher and higher. Of course, the credit card companies would prefer you spend more and more because that’s where they increase their sales – from people who will not pay in full.

Sana sa mga tips na ito maging maraming kaalaman ang ating matututunan. Try to think of your current use of credit cards. Let us not allow the offer of convenience and easy access to defeat our ultimate goal of financial freedom. As the saying goes, “the road to destruction is wide and easy; but the way to eternal bliss is narrow.” Also, the Bible is very clear on this issue – Owe no one anything. Talagang kailangang mag-ingat sa “plastic.”

If in 2012, you can succeed in paying off your credit card debts – you are right on track towards financial stability.