Tuesday, August 26, 2008

How to clear CREDIT CARDS debt? – by Mak Lai Poh

(Also taken from Adam Khoo’s Secret of Self-Made Millionaire)

What is Credit Card?

Credit Card is a convenience yet easy way to make a payment on purchasing or servicing. It helps you to purchase something or receiving a service easily with just a swipe. It can be used globally anytime and anywhere that you like. It can provide convenience and prevent trouble for you to travel with lots of cash. If you use it wisely, it can bring many benefits. For example, you can redeem free products for the bonus points that you have earned from your credit card though your purchasing. With this, you can save money too.

However, you must always pay the outstanding payment when you pay the full payment every month. This way, the bank does not earn a cent off you, but you get the bonus points mentioned above. Bankers earn interest from those credit cards owner who just pay minimum sum every month!

Do you know there are many youngsters (age between 20 to 30 years) dead broke because of credit cards?

If you choose to pay only the minimum amount per month and you thought that you can save or clear your debt easily, just forget about it! The truth is, the moment you pay only the minimum sum and allow your outstanding balance to roll, you become the bank’s best friend. This is when they will make a killing off you! Why?

This is because banks charge a 2% per month interest on your outstanding sum. This may seem small, but it is actually 24% interest a year. Just how much interest does this add up to? Let’s do the sum…

Question : Imagine if you had an outstanding balance of $2000 on your credit card statement, and you just pay the minimum sum of $60, how long will it take for you to pay off the whole balance? (this is only assuming you do not charge a single dollar more)

The shocking answer: It will take you 4.5 years! You would have paid a total of $3300, that’s $1300 in interest. In the other words, you would pay an actual interest rate of 65% off your balance.

As a conclusion, NEVER PAY A MINIMUM SUM or it will be your NEVER ENDING NIGHTMARE!


1. List down your debt (temporary and long term).

Temporary debts refer to credit cards debt, debtors from other sources, etc.

Long term debts refer to property loans, car loans or other loans that you receive for a period of time such as 5 years for car loans, 30 years for house loans, etc.

For example :

Temporary debts : Brother $3000

Credit card I $2000 minimum $60

Credit card II $5000 minimum $150

Credit card III $1000 minimum $50

Total $11000

Long term debts : House loan $1300 (30 years)

Car loan $ 500 (5 years)

2. Create a monthly estimated Cash Flow.

Your cash flow should include the following:

Debit (Income) includes salary or any source of income that you receive monthly.

Credit (Expenses) includes loans or any expenses that you spend monthly.

Balance to record the balance of your income.

(Assume that you do not have any saving or asset)

For example:

Month : January

Cash Flow

Debit ($)

Credit ($)

Balance ($)

Salary 4000

Food and utilities 1000

House loan 1300

Car loan 500

Entertainment 200


3. Distribute your balance according to the priority.

Balance cash flow : $ 1000

It is advised to settle the debt from the smallest sum to the biggest sum. Here, temporary sum from brother will be put apart first. This is because, debtor from a family member does not charge any interest that will burden your debt. Try talk the relative concerned to postpone the payment later. Focus and concentrate to the credit cards or other source of debtors that charge you an interest. (Warning: Do not simply get loan from the LOAN SHARK- you do not afford to pay the high amount of interest!) Remember to pay the minimum charge of the other credit cards debts to avoid any bad listing. Focus one by one from the smallest amount to the biggest amount.

Why from smallest and not from the biggest amount? Many people made this mistake by choosing to settle the biggest amount first. If you do so, you will find that it is very stressful, burdened and difficult to settle the bill and you give up half way in the middle of doing so! So, it is advised to start from the easiest which is the smallest amount to the hardest which is the biggest amount. With this, you will definitely feel more confident and less burdened to clear the debt! Trust me, the more you settle, the lighter you feel!

Always make sure that you settle more than double of the minimum charges of the particular credit card! Set target for each debt that you want to settle. For example to settle it in 2 months or others according to your ability.

Balance Cash Flow Distribution according to priority.

Month : January

i) Credit Card III $ 500 (estimated to be finished in two months)

$ 550 estimated left

ii) Credit Card I $ 120 (double of the minimum sum)

$ 1900 estimated left

iii) Credit Card II $ 300 (double of the minimum sum)

$ 4850 estimated left

iv) Balance $ 80 (saving or clearing other debts)

4. Follow strictly on the following month.

Balance Cash Flow

Month : February

i) Credit Card III $ 550 (cleared)

ii) Credit Card I $ 120

$ 1800 estimated left

iii) Credit Card II $ 300

$ 4700 estimated left

iv) Balance $ 30 (saving or clearing other debts)

5. Just few steps to go.

Congratulations! You have managed to clear a credit card debt. How do you feel? Satisfied? Confident? More confirm? Relief? Remember, you only have few steps more to clear your debts. All the best!

Now, set new goal for the following credit card which is the second smallest sum just like you did on the first month. Please take note that you have $500 extra for this month to be used to settle your second credit card. Do not use it on other expenses. Maintain your cash flow and continue with the balance $1000.

Balance Cash Flow

Month : March

i) Credit Card I $ 500 + $ 120 = $ 620 (estimated settle in 3 months)

$ 1200 estimated left

ii) Credit Card II $ 300

$ 4500 estimated left

iii) Balance $ 80 (saving or clearing other debts)

6. Maintain your good discipline.

No matter what, be disciplined to your cash flow. Your first three months might be difficult, but if you manage to follow strictly according to your plan, you will have no problem to take the next step.

Balance Cash Flow

Month : April

i) Credit Card I $ 650 (always give more or exact amount)

$ 600 estimated left

ii) Credit Card II $ 300

$ 4300 estimated left

iii) Balance $ 50 (saving or clearing other debts)

7. You are doing fine!

Just continue your journey. You are into the right track. Are you excited? You are almost finished settling your bills!

Balance Cash Flow

Month : May

i) Credit Card I $ 650 (cleared)

ii) Credit Card II $ 300

$ 4100 estimated left

iii) Balance $ 50

(always allow balance to be used during emergency or special unexpected occasion like wedding, birthday, etc)

8. One more to go!

Hurray! Only one more credit card to go! Set goal to settle like the beginning. Now, you can start to plan to settle debts from other sources such as from debtor, brother. Put a minimum amount from the beginning just like you did on the credit cards.

Balance Cash Flow

Month : June

i) Credit Card II $ 800 (estimated settle in 5 months)

$ 3400 estimated left

ii) Brother $ 120

$ 2880 left (no interest charge)

iii) Balance $ 80 (saving or others)

9. Summary after 5 months.

Assume that you follow exactly being planned and managed to clear the debt in 5 months.

Balance Cash Flow

Month : November

i) Brother $ 900 (estimated settle in 3 months)

$ 1500 left after 5 months X $ 120

ii) Balance $ 100 (saving or others)

10. Finally, summary after 3 months.

After 3 months, you will have the following positive cash flow.

Balance Cash Flow

Month : January

i) Brother $ 600 (cleared)

ii) Balance $ 400 (saving or others)

From the cash flow, you can see positive cash flow after a well plan budget. Positive cash flow means income more than expenses. Of course, this does not covered house loan and car loan. The less debt that you have, the more positive cash flow that you generate. From the cash flow, you can see that you can settle debts in a relax way and save some at the same time!

Do you know how much have you cleared? > $12000 in just 1 year!

Do you know how much time have you saved? 3 to 8 years!

Do you know how much money that you have saved? $1230!

Not only these, by doing so, you can also generate more income by settling other debts like the house loans or can loans. Same principle, always start from the easiest to the hardest. Or on the other hand, you can also use the balance money to create more wealth by investing in share, properties, business, etc. If you wish to generate positive cash flow, you need to maintain your lifestyle by maintaining your expenses. Spending more than you earn does not provide positive cash flow. Remember to be extra careful when you spend your money next time! Spend wisely and spend only on what you need, not what you desire!! Never repeat your same mistake and trap yourself into the web of debt again!!!

So, all you have to do is plan and follow exactly!! Do not hesitate, start from today, start from now!!

Last but not least, you must be wondered why am I managed to write this out? Because I was one of the credit card holder who owed money just like all of you!! I experienced it before and I have learnt my lesson well! I do not want to see anyone trap into this web of debt anymore! So, I hope that my tips are really useful for you. If I can do it, so you can!!

All the best!!!


Mak Lai Poh

21st August 2008 @ 12:50am

Saturday, August 9, 2008

We are Ready (Olympic Theme Song 2008)

Here is our translation of the lyrics to the Olympic song:

We Are Ready

Lyrics: Chan Siu Kei
Composer: Peter Kam Pui Tat
Singer: Jackie Chan

Waiting year after year
We can see into the future
Together with hard work and sweat, we've created
The five different [Olympic] colors

Waiting day after day
The feelings continue to surge
Building the biggest performing stage
In a bold and generous era

This land is prepared
The track is ready for you to make
your dreams come true
Let the eyes of the world
Descend and focus on us

We are ready!
Heart to heart united
We are ready!
Let sky and land unite
Excel yourself and win a glorious victory
Use time to record magical dreams
We are ready!

Waiting every second, every minute
The moment has finally arrived
Spectacular fireworks cover the sky
Flourishing in our pride

The people of our country are prepared
Smiling and asking, “How are you?”
Let the eyes of the world
Descend and focus on us

We are ready!
Heart to heart united
We are ready!
Let sky and land unite
Excel yourself and win a glorious victory
Use time to record magical dreams
We are ready!

Olympics Commercial 2008

Beijing, here we come! 080808 is a day to celebrate!! Bravo, China!! Watch this commercial led by not other that our Jackie Chan!!

Friday, August 8, 2008

Children see, children do!

As we know, being a parent is never an easy task. Never take parenting for granted. Whatever you do determine your children's future. Be extra careful with your behaviour, language and everything. Mind your behaviour. Mind your language. Mind everything that you do in front of your children! Whatever done by you in front of them will be followed by them!!
Be a role model, always...

Never take short cut.... or take things for granted, just like the video below:

Thursday, August 7, 2008

Famous Failure

Failure is really nothing. It is a process for us to learn. It is a journey before we succeed. Successful people fail too. It's up to us to decide how are we going to cope with failure in our lives! Remember, the future is in our hands to decide! No one but ourselves!!

Here, let me share this meaningful video on some of the world most famous people with their GREAT FAILURE! So, it's really no big deal to fail!! Really!!

Failure is Nothing!

Failure is just a process before we succeed!
Failure is just a lesson for us to learn!
Failure is just a test for us to understand!
Failure is just an education for us adapt!
Failure is just a journey in our lives!

Failure is not scary!
Failure is not ashamed!
Failure is not the end of the world!

Failure helps us to understand better!
Failure helps us to be more rational!
Failure helps us to be more matured!
Failure helps us to be successful!

So, go ahead and face failure bravely before we succeed!

How old are you?

Do you know that it can detect your age?
Don't believe it?
It's fun!
Come and try!


Don't tell me your age; you probably would tell a falsehood anyway- but your waiter may know!


This is pretty neat


It takes less than a minute. Work this out as you read .

Be sure you don't read the bottom until you've worked it out!

This is not one of those waste of time things, it's fun.

1. First of all, pick the number of times a week that you would like to go out to eat.

(more than once but less than 10)

2. Multiply this number by 2 (just to be bold)

3. Add 5

4. Multiply it by 50

5.. If you have already had your birthday this year add 1758...

If you haven't, add 1757.

6.. Now subtract the four digit year that you were born.

You should have a three digit number

The first digit of this was your original number.
( I. e., How many times you want to go out to restaurants in a week.)

The next two numbers are

YOUR AGE ! ------ (Oh YES, it is!)


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