Will Bank Negara Malaysia's tiered pricing structure affect you?
Written on 7:05 AM by Yuen Lung
Apart from the oil price rising, the new tiered pricing structure introduced by Bank Negara Malaysia is another bad news for those who have difficulty paying their credit card bill in full promptly.
Bank Negara Malaysia announced a tiered pricing structure last year (26 June 2007). Under this structure, interest rate for those who settle their minimum payments promptly will be reduced from 18% to between 15% and 17% per annum. However, the interest-free period for those who do not pay up their bills in full will be removed. This tiered pricing structure will be implemented 1 July 2008.
The removal of interest-free period impact is quite significant. It means for those cardholders who opts to pay partial or minimum payment, finance charges (interest charges) on retail transactions will be imposed from the day transaction is posted to the card account. In addition a minimum of RM10 or 1% on the total outstanding balances will be charged instead of 1% of the minimum payment amount (before the new structure).
Therefore, those who does not settle their credit card balance in full by the due date will end up paying more than before.
Spend wisely, understand your cash flow well, settle your credit card bill promptly, else you will going into bigger debts after 1 July 2008.
Reference:
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