Irresponsible banking

I hated accounting and anything finance related in school, so I'm no expert in topics concerning banking or anything like it. But it seems like a fair deal. You put your money in the bank, it takes care of it while making money for themselves, then pay you a dividend in the end.

Then there are loans.
You get money to pay for a house, a car or to start a business. And in return you pay them back with interest for the service. Fair enough. Quite necessary (makes more sense than paying rent for the rest of your life).

But what's the deal with credit cards?
You can't walk in a shopping mall nowadays without some pushy credit card salesperson (with a nice job title like 'Credit Executive') shoving an application form in your face. Free for life. Free gifts. Free this. Free that.

Just the other day a really annoying guy stopped me in my tracks and asked "Miss, can you help me?". I was like, "Huh?" and he went on to shove me a small Chinese teapot set and a scroll of Chinese painting. "Choose your free gift! It's free for you!" Then I saw the banner behind him "FREE gift with every successful application for Bank A's credit card". I had to roll my eyes, give him THE hand (not a hand) and walk away, with him screaming "Why won't you help me?". Moron.

It's ridiculous.
Sure, credit cards are convenient. But they're evil. So many people I know live on credit, with a lifestyle that's way beyond their means. It's all about immediate gratification these days. No wonder people no longer see the value in hard work. Why work hard when you can get what you want and get it right now? Why wait until you can really afford something?

I've seen fresh graduates spend an entire month's salary on a pair of Jimmy Choos or a Coach handbag. Then pay the minimum every month and incur an 18% p.a. interest on the balance (which adds up to a hefty amount in the long run). Then if the interest gets painful, a different bank will entice them to transfer their current credit card balance to a new card, offering 0% for the first few months (typically 6), then charge them the same after that. By then, they would have been lulled into a false sense of security, build up even more debt and the vicious cycle goes on.

Many young people don't even realise interest is so high. It's even higher than mortgage! They see 1.5% monthly on the statement and go, oh it's only 1.5%. But multiply that by 12? It's paying RM18 for every RM100 you owe. Compound that by the accumulated debt AND interest over many months? Some people I know have credit card debts of up to RM30k. Many of them don't even earn more than a tenth of that in salary.

Yet, banks continue to push the plastic.
Easy money. And hey, if credit card users default on their payments, no problem. Bankrupt them. Seize their assets (if any). The bank wins. They never lose. Whatever happened to social responsibility?

The public are the real losers unless they learn about the dangers of living on credit. Imagine being in debt till you're 55, and lose your retirement fund just to pay off your credit card debts.

Sometimes I get suckered into buying things I can't really afford. Sometimes "nice to have" becomes a "must have". But I always, always pay off my credit card bills in full every month, no matter how painful. I guess I'm not the kind of customer banks appreciate. I refuse to let them make money out of me. I make noise if I have to pay the annual fee. AND I accumulate points to get freebies from them. Heh.

Still, they never stop trying to tempt me. With a 2nd card. With a higher credit limit. With a card upgrade. Classic to Gold. Gold to Platinum (with a credit limit several times my salary). WHOAAAA, should I book my dream holiday / dream car / dream home right away?

Gee, thanks, Bank C, but no thanks. I'm still paying my bills in full every month. I plan to always live within my means. No way I'm gonna let you make a single cent out of my hard earned money.