Moratorium: Does it cover all debts I have? Short answer, no. What does it not cover? It does not cover credit card debts.
Article in nst.com.my Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) clarified that the moratorium is open to all individuals, including all B40, M40 and T20 borrowers, microenterprises and all small and medium enterprises (SMEs). This automatic moratorium is applicable for loans or financing approved before July 1, 2021 and are not in arrears for more than 90 days on the date the request for the moratorium is submitted to the bank, the associations said.
As announced by Bank Negara Malaysia, borrowers’ Central Credit Reference Information System records will remain unaffected by opting in for this moratorium. ABM and AIBIM said their members did not appoint or engage third parties or agents for purposes of the moratorium.
ABM and AIBIM said banks would also offer credit card facilities to convert the outstanding balances into a three-year term loan/financing with reduced interest rates to help borrowers better manage their debt. Please do read the full Article in nst.com.my
Outstanding balances will be converted into a 3-year term loan / financing
I do hope everyone read the last paragraph which is also considered like a partial moratorium for credit card debts. Please do go to the bank with the balances, get them to restructure this into a 3-year loan / financing and seriously do best to stop buying the unnecessary stuffs yeah. Please also do not take up the Buy Now Pay Later program by Shopee. (here’s that detail) or Lazada and any others.
Credit card is a convenience and to a lesser extent these days, showing off one’s current financial status. From the normal cards to Gold to Platinum and even Infinite / World Cards and even higher. All these would show the earning capability. However, ANYONE who used more of the given credit than what they could really pay would all be digging a hole which will soon be too high to jump out from. Happy understanding and remember, there’s no moratorium for credit card debts but there’s a potential solution if we could now be disciplined enough.
Next suggested article: Credit Cards: 40% are spending beyond their means.