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Sunday, April 30, 2006

Mortgage Reduction Planning (MRP)

Two days ago, i check my letter box and i found one advertisement by MRP, which stands for mortgage reduction planning. Below is the benefit of having MRP done:

  • Can save about 30-80% of mortgage interest
  • Can shorten the tenure by 5-20 years
  • Can pay off loan before retirement or children's higher education
  • Can own multiple and/or larger property
  • Can live a debt free lifestyle

The diagram below shows the high interest rate before MRP.

After...

...half of the interest charges can be saved with MRP.

Monday, April 17, 2006

Credit card - Pros vs Cons

Applying credit card is very easy nowadays. You can see small booth being set up in major shopping complexes and salesman/ saleswoman trying to attract people passing by to apply for credit card. From what i know, each application that is succesful will give the salesperson about RM 50-100. That does not include the basic pay for setting up the booth. Before applying for a card, the pros and cons need to be considered first.

Pros

  • Credit cards are usually needed to make airline or hotel reservations.
  • Most of the online or phone transaction needs credit cards.
  • Carrying credit cards is safer than carrying cash.
  • Credit cards can be particularly useful in short-term emergencies.
  • There are a lot of bonuses when using credit cards.
Cons
  • High interest and fees may outweigh the benefits.
  • Money will be spend much more easier (no limit).
  • Bad credit debt could affect your future applications for insurance coverage, mortgages, and installment loans.