Why Credit Cards Are NOT Evil (If You Use Them the Right Way)

 

Credit Cards Are Just Tools

In Malaysia, credit cards get a bad name:

• “Hutang kad kredit banyak!”

• “Jangan pegang kad kredit, bahaya!”

But the truth is, credit cards are NOT evil — misuse is.

Used wisely, credit cards become powerful tools:

• Protecting cashflow

• Building credit history

• Earning cashback and rewards

• Tracking expenses better

Let’s dive deep into how Malaysians can master credit cards safely.

Myths About Credit Cards

✅ Myth #1: Credit Cards = Debt

Reality: Only if you spend money you don’t have.

✅ Myth #2: Debit Cards Are Always Safer

Reality: Credit cards offer better fraud protection.

✅ Myth #3: It’s Hard to Control Spending

Reality: Only if you lack discipline. Otherwise, auto-payments and setting limits work.

Benefits of Using Credit Cards (Wisely)

✅ Cashback Savings
E.g., Certain credit cards offers certain percentage of cashback on groceries and petrol.

✅ Reward Points
Points can be exchanged for vouchers, free flights, or even cashback.

✅ 0% Installment Plans
For large purchases (e.g., laptops, furniture), 6 or 12 months 0% plans can help cashflow — but only if needed wisely.

✅ Emergency Buffer
Medical bill, car breakdown? Credit cards provide immediate funds (repay immediately after).

✅ Credit Score Building
On-time repayments = better chances for car loans, home loans later.

How to Use Credit Cards Responsibly

✅ 1. Always Pay Full Amount Every Month
Never carry forward a balance. Avoid the high 15%–18% interest rates.

✅ 2. Use Credit Card Like Debit Card
If you don’t have the money, don’t spend it. Simple rule.

✅ 3. Limit to 1–2 Cards Maximum
Easier to track, harder to overspend.

✅ 4. Set Spending Limits
Use apps like Touch n' Go eWallet, MAE app, or even the bank’s app to control spending.

✅ 5. Focus on Cashback or Points That Fit Your Lifestyle

• Grocery spender? Cashback cards.

• Frequent traveler? Air miles cards.

Malaysian-Specific Good Cards (Examples)

• Public Bank Quantum Mastercard: 5% cashback on dining, online spending

• Maybank 2 Cards Gold: 5x TreatsPoints on weekend spend

• Hong Leong Wise Card: 8% cashback for selected categories

(Disclaimer: This is not a recommendation — just sharing options.)

Caution: What to Avoid

❌ Making only minimum payments
❌ Applying for too many cards at once (hurts credit score)
❌ Spending for points alone ("Oh look, free luggage if I spend RM5,000" — no thanks!)

Conclusion: Be the Master, Not the Victim

Credit cards are not your enemy.
Ignorance and impulse spending are.

Learn the rules. Use cards to your advantage. Enjoy cashback, rewards, and a strong financial reputation — without falling into debt traps.

Because the real “evil” is not understanding how money works — not the card itself.

Tax Reliefs for Malaysians in 2024: A Complete Guide

As the year progresses, it’s time to start thinking about ways to optimize your finances and reduce your tax burden. Tax reliefs are a fantastic way to do this, especially in Malaysia, where the government provides various incentives to encourage savings, investment, and responsible spending. Whether you’re new to filing taxes or a seasoned taxpayer, understanding the available reliefs for 2024 can help you maximize your savings.

What Are Tax Reliefs?

Tax reliefs allow individuals to reduce their chargeable income by specific amounts, depending on the qualifying expenses incurred during the year. These deductions directly reduce the taxable income, lowering the total tax payable.

For example:

• Chargeable Income: RM60,000
• Eligible Tax Reliefs: RM15,000
  New Taxable Income: RM60,000 - RM15,000 = RM45,000
  This reduction in taxable income can save you hundreds or even thousands in taxes, depending on your income bracket.

Overview of 2024 Tax Reliefs

Here’s a comprehensive look at the key tax relief categories for the year 2024. Use this list to identify areas where you can save:

1. Lifestyle Relief (Up to RM2,500)

• Qualifying Expenses: Books, magazines, personal electronics (e.g., laptops, smartphones), gym memberships, and sports equipment.
• Tip: Keep receipts and invoices for documentation.

2. Education Fees (Up to RM7,000)

• Covers fees for pursuing tertiary education or professional qualifications, either locally or abroad.

3. EPF Contribution & Life Insurance (Up to RM7,000)

• Breakdown: RM4,000 for EPF contributions + RM3,000 for life insurance.
• Self-employed individuals contributing to EPF or private retirement schemes can also claim this.

4. Medical Expenses (Up to RM8,000)

• Includes expenses for serious illnesses, mental health treatments, or fertility treatments for you, your spouse, or children.

5. Childcare Fees (Up to RM3,000)

• For parents sending children below 6 years old to registered childcare centers or preschools.

6. SSPN Contributions (Up to RM8,000)

• Contributions to the National Education Savings Scheme (SSPN) qualify for a significant deduction.

7. PRS Contributions (Up to RM3,000)

• The Private Retirement Scheme encourages long-term financial planning for retirement.

8. Disabled Spouse or Self (Up to RM6,000)

• Additional RM3,500 if you have a disabled spouse and an RM6,000 relief for registered disabled individuals.

9. Parental Care Relief (Up to RM3,000)

• If you support parents aged 60 and above, you can claim up to RM1,500 per parent.

Examples of Maximizing Tax Reliefs

Here’s a practical example to see how these reliefs can benefit a middle-income earner:

Details	Amount (RM)
Total Income	80,000
Lifestyle Relief	2,500
EPF + Life Insurance	7,000
Childcare Fees	3,000
SSPN Contribution	5,000
Chargeable Income	62,500

By effectively claiming RM17,500 in tax reliefs, this individual significantly reduces their taxable income, potentially saving thousands in taxes.

Key Tips

1. Plan Ahead: Identify qualifying expenses and keep track of them throughout the year.
2. Organize Documents: Maintain receipts, invoices, and proof of payment for all eligible expenses.
3. Leverage Investment Tools: Consider contributing to SSPN or PRS for additional reliefs while growing your investments.

---

Summary Table of 2024 Tax Reliefs

Here’s a quick overview to help you visualize the options:

Category	Maximum Relief (RM)	Eligible Expenses
Lifestyle Relief	2,500	Books, gadgets, sports equipment, gym memberships
Education Fees	7,000	Local and international tertiary education
EPF & Life Insurance	7,000	EPF contributions and life insurance premiums
SSPN Contributions	8,000	Contributions to SSPN account
PRS Contributions	3,000	Private Retirement Scheme investments
Childcare Fees	3,000	Registered daycare or preschool fees
Medical Expenses	8,000	Serious illness, mental health, fertility treatments
Parental Care	3,000	Support for parents above 60

Closing Thoughts

Tax reliefs can make a significant difference in your financial planning if you approach them strategically. Start early, keep records of all eligible expenses, and ensure you understand the terms of each relief. While it’s important to save, do so responsibly and within your means. By maximizing these incentives, you can enjoy better financial health and stability for the future. Stay proactive, and happy tax planning!

Malaysian Tax Calculator

Below is a tax calculator for you to explore and have fun with! Please note that this is a simplified tool designed to give you an estimate of your tax liabilities. For precise calculations and compliance, always refer to the official guidelines from the Malaysian tax authorities or consult a tax professional.

Annual Income (RM):

EPF Contribution (Max RM4,000):

Education Fees (Max RM7,000):

Medical Expenses (Max RM8,000):

Parent Support Relief (Max RM5,000):

Books, Journals, etc. (Max RM2,500):