Marwadi angdi is better than these!

Do you suffer from frequent loss of money to banks by overspending, thrift spending and moody spending? As democracy dictates that poor get poorer and rich get richer so do the usage of this credit cards propogate – debt.

Every bank charges only 2.5% interest on outstanding amounts beyond 45 days. Simple back of envelope calculation is showing 30% interest per annum. Most people fall for this 2.5% and allways keep paying the minimum balance. The net result is a hugh interest of 30%. The traditional marwari money lenders are more friendly at 25% per annum.

As an immideate debt resolving mechanisum, take a personal loan which is comparitively cheap at 18% and payoff the card. Surrender the card or better dont carry it around. You will start noticing the big savings in a couple of months alone.

Dont again fall for that cash back business. If you are to be eligible for that cash back you need to shop for so much money, that would actually increase your debt!

Why,why do these card companies charge such high interest rates? The citibank officer answered that frankly and said “we charge more for regular payers so that it offsets the losses of the non payers“.

Throw that card away and enjoy the freedom.

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17 Responses to Marwadi angdi is better than these!

  1. Veena says:

    Agreed, but we do have positive side of it too..At times, it helps a lot..
    May be middle class people like me(who have not gone to singpore during mid 90’s ;-)) have to depend on this one!

    chaitanya,praneshachar & myself were discussing about this plastic card & its facility…

    iruvudella biTTu iradudareDege tuDivude jeevan- Mohan nimage anthaane ee padhyada saalu arpita..!

  2. M O H A N says:

    Veena,
    Yen positive madam. Just by taking a personal loan and converting your debt into personal loan, you save a massive 12% of interest. If you forget there are other legal charges too ( i know about your small trick for SBI though). Why singapore only mam? Even if you are in moracoo you will not be able to skip these options which are mental in nature. A good control on your data is primary and planning is secondary!!!

  3. Prasanna Sastry says:

    Mohan Sir, Neevu CPI/CPM avara thara Negatives mathara nododu, I use my Credit Card for 2 weeks or max 3 weeks. My Billing Originating date is 4th of every month and Payment date is 24th. I do all my purchases using the Credit Card between or extends to another 5-6 days such that my credit period is betweeb 48-56 days. I could also go for a FD for this amount for 61 days for a meagre 3% interest too.

    I ensure that my purchases doesn’t exceed the Lakshmana Rekhe that i have set. If you follow some guide lines im sure you need not see goons visiting your house

  4. Veena says:

    Prasanna sastry avare, this is exactly we talked about the other day!

    about CPI/CPM .. LOL!!

  5. Prasanna sir,
    The total number of people in your category is hardly 5%!! Majority of them suffer from debt problems. Your method is still not flaw proof. What about the annual fees you pay – thats less than 3% or exceeding 3%? Over and above there are other fatal attractions like offers, discounts which finally increase the debt bill.

    Credit card usage and CPI/CPM – i didnt get that joke.

    Beda sir, salagararodu beda… sahukara agdidrue parvagilla, sala thagondu papar agodu beda.

    How many people know about these negetives sir? Thats why this post.

    Offcourse controlled spending is the need of the hour and only then this problem starts. Thanks again.

  6. Prasanna Sastry says:

    Presently no credit card company is charging annual maintainance charges. Even what ever additional charges were being taken like in petrol bunks( no idea no about veena’s petrol bunk) are being reverted back. Becoming addicted to Discounts its a pure Human Nature and they need to have a control on it.

    The main mistake people do is Just put Blank signatures on Terms and Conditions. One has to go thru it throroughly and later claim their ignorances. Our Banks only need such kind of people

    “Ignorance of law cannot be pardoned under any circumstances.

    CPI/CPM- Communist Party of India/Communist Party Marxist.

    Mohan Sir dont take it bitterly its a kinda of debate.

  7. prasanna sir,
    what ever I roost, people still loose out personally despite many warnings.Thanks πŸ™‚

  8. some body says:

    mohan avare:

    check out what crazy money says.

    “The total number of people in your category is hardly 5%!!”

    saar, you are underestimating our readers!

    – s.b.

  9. Some body.

    That game is about transferring from card to card without losses, in India we are yet to reach that gimmick stage! When I said 5%, its the indian context of people who pay within credit limits and actually survive. thanks.

  10. some body says:

    mohan:

    oops, i should have said ‘this is what happens in usa, check out what crazy money says’. here, you actually get paid (if only one percent) to use a credit card!

    yeah, in india i guess we are at the ‘getting out of the annual fee’ stage. i remember the time when usa morphed out of that stage (even though some cards charge a fee here even now). and even here, there was a time not that long ago when grocery stores did not accept credit cards – i used to wonder why (i don’t anymore as cards are more widely accepted now πŸ™‚ ).

    “When I said 5%, its the indian context of people who pay within credit limits and actually survive. ”

    i understood that is what you were trying to say – my point was that your post has no power over those who don’t read it, and those that do, hopefully, are all within the 5% you mention.

    – s.b.

  11. Somebody,
    Thanks for the info. You are correct and the reason whythis post was done is explained by you in the last para!
    BTW you are blogrolled!

  12. I threw away my credit cards and now Im free and believe me….savings are really happening!!!!!

    Credit cards are a bane if you dont know how to use them, I dont know how to, so chose to get rid of them!!!!!

  13. Veena says:

    Srik, you have a better way of telling this πŸ™‚ atleast convince haago haage!

    I remembered that SHE poem in the morning, amazing it is.. !

  14. Srik,
    πŸ™‚

    Veena,
    Shows that am a bad teacher! πŸ™‚

  15. Nono… you are a master Mohan, not a teacher πŸ˜‰

  16. Two things Srik,
    one is that veena teaches and does social service while I do only lip service. The other is that you are very good in articulating and putting forward your thoughts more nicely – more importantly your audience understand.

    As the great TN seshan retored once for the feed back “you are very wise” as “No am otherwise”! πŸ™‚

  17. […] Debt Councelling When there was a post on how credit cards are dangerous for lives, most readers felt the post was quite negative. […]

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