Who Will Get the Last Laugh?

I have received an interesting email from my colleague today. It is about the Credit Card 3-tiered pricing structure announced by Bank Negara previously, whereby one of it is that, those who pay their minimum payment on time will be charged 15-17% interest p.a for the balance instead of the usual 18%. To you that is not new, right?

Well, the catch is, following the new structure, effective from this 1st July, the 20-days interest-free grace period will only be applicable to those who settle their balance in full (which they did not mentioned before). Which means, eventhough you pay (1) partially, (2) on time and (3) being charge 15-17% p.a, your purchase in your next statement does not enjoy the 20-days grace period anymore, until you have settle your outstanding balance. Instead of having a discounted interest charge, your credit card might ballooned if you are not careful.

Wow.. what I can imagine now is that we Malaysian can greatly reduce their spending habit because of this. Hopefully some day we will not depend so much on our credit card, and the retailers instead will cry foul due to their drops in sales. And they, in return will beg to Bank Negara on consumers behalfs.

We will see who will get the last laugh..