A Decapitating Move!

Who would believe Budget 2008 could have such adverse effects on most of us?

Us-here means those who are holders of numerous credit cards.

Over the years, we have been accumulating these credit cards particularly Platinum Credit cards. We were quietly happy that our credit rating has improved and that we can quickly access a lot of cash even though at a higher cost. No need to go to the bank, filling out forms and getting guarantors.

However, PM Najib as Finance Minister has put paid to our financial comfort zone. For every principal card, a government tax of RM50 will be automatically levied from January 2010. Supplementary card holder will pay RM25.For many who depend on credit cards for cash flow,PM Najib has indeed wounded the golden goose.

I know of many small businessmen that thrives of credit card loans to offset cash flow problems. I guess they can still keep the cards if they want to but pay unnecessary taxes for it now.

For many banks intending to go on aggressive roadshows to promote credit cards,it has rung the death knell as well. Once someone has a credit card, he may want to upgrade. But if he is already a Platinum card holder,it will be downright difficult to ensnare him to carry an additional card.No one wants to pay the government.Why should they?


I expect many to cancel their cards posthaste before January 2010. Just today, I went to two banks to cancel three of my cards. I will be canceling more cards in the days to come. Finally, I guess I will only end up with about four to five cards which are 'relevant' to me.

Anyway,there is a silver lining for me in all this. My so-called assumed 'indebtedness' on record at Bank Negara will now slowly evaporate.....