Making Money Online

In today’s financial situation, before you can try making money in tons, managing debt has become an integral part in your whole scheme. And in light of the recent Malaysian Government initiatives to ‘curb the misuse of credit cards’ by charging the public RM50 per cards annually, it just reinforce the importance of debt management.

But maybe (just maybe), the Government also has the wrong idea on how to do this. What do I mean?

Here’s the thing:

Money problem often time can’t be solved with money! And that’s exactly what they are trying to do. Problem with managing money is better solved at mental level – by changing the thinking and feeding them the right info.

Right info can supersede the wrong info

The first thing that probably much better for the Government to do is to EDUCATE the Public about the difference between Good Debt and Bad Debt.

After the Government made the announcement, a few of my friends already went to the Bank to cancel some or all of their credit cards. Cutting credit cards is not the solution if debt management is – knowing what is good debt and what is bad debt.

For example, using credit card to finance your HDTV purchase might be a sound idea at that time because you don’t need to part with so much cash, fearing your safety is in danger carrying such a huge amount around.

But HDTV is not going to put money in your pocket in the long run!

You will be left with payment to the bank, ‘on daily rest’ interest rate, month in and out. Generally, this is not ‘good debt’. And this is just a sample. I believe you can relate to your own experience.

I’ll keep this short – knowing the type of debt to acquire and debt to steer away is the best guard against credit misuse; not cutting credit cards or charging public to ‘penalize’ them for spending on credit. There are better ways to put credit under control, and that’s why debt management is important.