Practical Approach to Debt Management
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Borrowing money means getting into debt. There are many ways to land oneself in the clutch of debt – credit cards, hire purchase of cars, personal loans, mortgages, student loans, and the list goes on. When you borrow, you need to repay the loan amount or principal+interest. Interest is what a borrower pays a lender for the temporary use of the lender’s money. But remember:
“Debt is like a rubber band. Stretch too far and it WILL snap.”
The rubber band will not only snap but it will hurt our hands. In other words, having too many consumer loans will limit our living options and hurt our lives in many ways.
Common reasons for going into debt:
- Buying a home
- Buying a car
- Poor money management
- Medical bills
- Unexpected expenses (eg. car repairs)
- Living beyond one’s means
- Purchase of consumer goods on credit (eg. furniture, electronic items)
- Loss of income
- Too little savings
- Starting a business
- Loan repayments
Generally every consumer should:
- avoid the overuse of credit
- reduce the total amount of debt
- shorten their repayment period
- reduce finance charges
Debt management strategies
- Understand debt as only a ‘symptom’ and that the underlying problem is something else.
- Opt for cash instead of credit.
- Establish a safe debt level.
- Live within your means.
- Resist buying on impulse.
- Use credit for productive purposes only (such as proper investments).
- Plan ahead.
- Make repayments on time.
- Smart use of credit card.
- Consolidation of loans.
Economic Transformation Programme (ETP) exceeds target
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Malaysia has made a great start in its move to transform itself into a high income economy by 2020, having exceeded the targets set out for last year.
“We have shown we can deliver big results fast. However, this is a marathon, not a sprint,” said Minister in the Prime Minister’s Department and Chief Executive Officer of the Performance Management and Delivery Unit (Pemandu), Senator Datuk Seri Idris Jala.
There are still nine more years to go and all from the public and private sector must remain fully focussed to realise the goal of transforming Malaysia, he said in a statement issued by Pemandu in conjunction with the release of the Economic Transformation Programme (ETP)’s Annual Report 2011.
All in all, the six reform measures and 12 National Key Economic Areas have got off to a great start, he said. The Economic Transformation Programme (ETP)’s 10-year targets have been clearly defined: RM1.4 trillion in investment to generate a Gross National Income (GNI) of RM1.7 trillion and the creation of 3.3 million incremental jobs, by 2020.
This will translate into a GNI per capita of US$15,000 and catapult Malaysia into high-income nation status, he added.
He said to ensure transparency and accuracy in the 2011 ETP Annual Report, PricewaterhouseCoopers, an independent audit firm, was engaged to conduct a series of Agreed-Upon Procedures.
In its first year of implementation, the momentum created by the ETP resulted in immediate knock-on effects on the economy with private investments surpassing its 2011 target by 13% to reach RM94 billion and Gross National Income (GNI) by 4% or RM830 billion.
The confidence created by the ETP also resulted in Malaysia’s 2011 foreign direct investment to increase by 12.3% to RM32.9 billion as compared to 2010, the highest in 10 years. Trade grew 8.7% to RM1.27 trillion last year alone.
“On Public Finance, we have collected RM25.3 billion in additional taxes through improved efficiency. Our deficit in 2011 was 5% of GDP, beating estimates of 5.4%. I am confident we will achieve our budget deficit goal of 4.7 per cent this year,” said Idris Jala.
Download Annual Report
Dividen ASM 6.50 sen
By · CommentsLEBIH 540,000 pelabur Amanah Saham Malaysia (ASM) dengan jumlah 12.62 bilion unit akan menerima durian runtuh menerusi agihan pendapatan tahunan sebanyak 6.50 sen seunit bagi tahun kewangan berakhir 31 Mac ini berbanding 6.38 sen seunit pada 2011.
Pembayaran pengagihan pendapatan akan dilabur semula dalam bentuk unit secara automatik dan dikreditkan ke dalam buku pelaburan pemegang pada 1 April 2012.
Presiden merangkap Ketua Pegawai Eksekutif Kumpulan Permodalan Nasional Berhad (PNB), Tan Sri Hamad Kama Piah Che Othman berkata, pengagihan pendapatan itu membabitkan peruntukan RM820.24 juta iaitu peningkatan sebanyak 8.6 peratus berbanding RM755.05 juta pada tahun lalu.
“Sehingga 21 Mac lalu, tabung ASM memperoleh pendapatan kasar RM978.32 juta dengan pendapatan dividen daripada pelaburan dalam beberapa syarikat menyumbang 79 peratus kepada jumlah pendapatan kasar yang dicatatkan,” katanya selepas pengumuman pengagihan pendapatan ASM bagi tahun kewangan berakhir 31 Mac 2012 di Kuala Lumpur, semalam yang turut dihadiri Pengerusi PNB, Tun Ahmad Sarji Abdul Hamid.
Majlis sama turut menyaksikan pengumuman agihan pendapatan bagi tabung di bawah Amanah Saham Gemilang (ASG) iaitu ASG-Pendidikan, ASG-Persaraan dan ASG-Kesihatan.Pemegang unit ASG-Pendidikan akan menerima agihan pendapatan 7 sen seunit, ASG-Persaraan (7.05 seunit) dan ASG-Kesihatan (7.10 sen seunit).
“Malah, kami juga turut membuat beberapa persiapan tertentu dalam memastikan pelaburan yang dibuat dapat memberi pulangan kompetitif setiap tahun,” katanya.
ASG adalah dana harga berubah-ubah dan setiap pelabur dibenarkan melanggan unit dalam ketiga-tiga tabung tanpa had.
Malah, pemegang unit yang melanggan melalui skim pelaburan Kumpulan Wang Simpanan Pekerja (KWSP), pendapatan agihan masing-masing akan dikreditkan ke dalam akaun KWSP berkenaan.
