Bad News Guys; The Govt Has No Plans To Abolish Credit Card Interest Charges

Gotta shop less.

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Bad News Guys; The Govt Has No Plans To Abolish Credit Card Interest Charges

Credit card holders, this news might be of interest (heh, see what we did there?)

If you have been hoping all this while that the government will abolish credit card interest charges, well, you can forget about it.

The government has no plans to abolish these charges, Deputy Finance Minister Datuk Othman Aziz told The Star Online.

Abolishing credit card interest charges, according to Othman, will not benefit the economy.

Othman added that imposing these charges in retail shopping would also discourage Malaysians from spending excessively, hence strengthening their self discipline.

Othman revealed that there are currently 9.9 million credit cards in circulation and out of that number, 8.8 million of them are primary cards registered to around 3.7 million individuals.

With so many credit cards out there, it shouldn't come as a surprise that bankruptcy due to credit card debt is one of the leading causes of bankruptcy among Malaysian youths in the country.

In response to that, Othman told the news portal that the government has taken steps to protect cardholders, including tightening the rules on credit card ownership. 

Principal cardholders who earn less than RM36,000 annually can only hold a maximum of two cards with a maximum credit limit of two times their monthly income. 

Know when to stop.
The government has also set up the Credit Counselling and Debt Management Agency (AKPK) in 2006 to help Malaysians control their spending and settle their outstanding loans.

So, what do you guys think? Is credit card interest charges necessary?

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