Sunday, May 2, 2010

Caution: This blog post is strictly for education purpose only.

This picture represents my point of view of my research.

Credit card is a service provided by Commercial banks

The Interesting fact of this card is that it allows it's users to purchase goods and services which they are only required to pay back at the end of the month.

YOU MUST KNOW!!

You are given the opportunity to only pay back the minimum amount preset by the bank.

OF COURSE!! Your debt does not vanish; it accumulates with an interest rate.

Two event inspired me to carry out a research on credit card:

Poor Management of Credits-----> Late-2000s Recession

&

RM50 per Card, per year charge by Malaysian Government

Therefore, the purpose of my research is to determine whether credit cards are helping people (Working adults & Students) by allowing deficit spending

or

Putting them into more debts

The results actually surprised me!!

The Malay Mail had reported the number of bankruptcy due to credit card debt in Malaysia

IS DECREASING

Through the social research conducted, the result shows:

95% of the respondents are aware of their credit card limit.

60% of respondent said that they are aware of the interest rate.

The reason stated are that they plan their expenses well and they always settle all outstanding amount at the end of each month.

Interesting reasons: Not able to settle debt-----> GUILT

A shocking of 80% of respondent pays their balance in full in the end of the month.

This proves that the debts in credit cards are quickly cleared to avoid it from growing

But this is somehow contrasting with an interview made with a Operation Manager of a Bank.

She said that there are about 2/3 of people who only pay back the minimum amount at the end of the month.

In Conclussion

The thesis had been proven wrong =(

(Credit cards are putting people into more debts - EVIL!!)

The statistics and the opinion of the public had shown that credit cards are truely helping the people by allowing deficit spending. The decrease in Malaysia's bankruptcy had, without a doubt proven that credit are putting lesser and lesser people into trouble.

Posted by,

-Mel-

posted @ 3:33 AM |