Smart and Prudent Financial Management Series 3
Smart and Prudent Financial Management Series 3 contains 4 more steps you need to know such as do not owe arbitrarily, reduce the quantity of credit cards, reduce the burden of monthly commitments so that it is not high and give a lot of charity and zakat so that our money is blessed by Allah. Let’s peel one by one on this issue so you better understand.
Smart and Prudent Financial Management Series 3 - Don't Go Into Debt Arbitrarily
The seventh step in Smart and Prudent Financial Management Series 3 is Don’t Go Into Debt Arbitrarily. Lots of Internet ads like on websites, Facebook, Instagram and search on Google about personal loans. What is a personal loan? Personal loans in other words are indebted. So be careful because if you owe a lot, you will expose yourself to even more devastating financial harm.
Don’t be fascinated by the low interest rates and prizes on offer. Think carefully before creating any new debt.
Smart and Prudent Financial Management Series 3 - Reduce the Quantity of Credit Cards
Smart and Prudent Financial Management Series 3 – Reduce the Quantity of Credit Cards is the eighth step that you must follow because you are in high debt burden by having a lot of credit cards. Use a credit card in case of an emergency instead of buying luxury items.
Among the advantages of credit cards:
- You get the goods and paid within 21 days after the date of purchase.
- Easily purchase on-line and off-line.
- You can use according to the max amount of withdrawal allowed.
- You can make easy installment payments when buying items at an expensive price.
- Enjoy 0% interest rate and payment can be extended for 24 months, 36 months or up to 60 months.
- You can buy stuff even if you don’t have enough money.
Among the disadvantages of credit cards:
- Uncontrolled usage causes unexpected pleasure.
- The desire to buy is getting bigger.
- Can buy items even you don’t have enough cash.
- You will have a culture of collecting credit cards. More credit cards mean more debt.
- Interest rates of 18% per annum and double interest are very detrimental to the poor and middle class income.
You are advised to use a debit card in all dealings because only you know the ability and purchasing power you have.
Smart and Prudent Financial Management Series 3 - Reduce the Burden of Monthly Commitments
Smart and Prudent Financial Management Series 3 – Reduce the Burden of Monthly Commitment is the ninth step you need to take if you want peace of mind. With rising prices of necessities and high inflation rates, you should reduce the burden of your monthly commitments. Many people misunderstand the concept that additional debt is needed to cover daily living. That is a completely wrong concept.
You can reduce the burden of monthly commitments by reducing online purchases of goods, paying monthly installments on-time, reviewing phone line postpaid plans and reducing pay tv station packages etc.
Wise and Prudent Financial Management Series 3 - Give a Lot of Alms and Zakat
The last step you can follow in Smart and Prudent Financial Management Series 3 is to Give a Lot of Alms and Zakat. There is a saying “the more you give, the more you will be rewarded”. Your heart becomes happy and cultivates an attitude of compassion for fellow human beings.
Perhaps this is something that we rarely do, which is to give alms and zakat. Believe that the sustenance comes from Allah and you will not go bankrupt if you give alms and zakat.
What If You Have Too Much Debt?
When you are short of money, it comes to our minds to make a personal loan. This is because we do not know any source to get additional money. To make a personal loan is a very easy way as there are many banks and cooperatives that offer personal financing.
There are also cooperatives that provide emergency loans to its members who face a shortage of money to buy and to get on with life. The financing is known by many names, namely school financing, emergency financing, Hari Raya cash assistance and others.
Bear in mind that if you are applying for an emergency loan, you are actually at one last stage of applying for a personal loan. If you are not eligible to make an emergency loan after this, you may fall into borrowing with Ah Long (loan shark).
How To Manage Too Much Debt?
The last way for you to manage your massive debt is to contact a debt management agency established by the government. In Malaysia, the agency is known as AKPK (Credit Counseling and Management Agency). You can contact AKPK to structure all your loans with a bank or financial institution. Please contact AKPK at 03-26167766.
That is the end of Smart and Prudent Financial Management Series 3. Hopefully you get benefited from this info.
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