Got a big Hari Raya credit card bill? Here's how to pay it off, stress free

Because of everyone's rush to travel back home for the holidays, you might see your airfares doubling, especially if you're doing last minute flight bookings. You're likely to be checking out Raya sales and doing some major shopping for new festive outfits, decorations and gifts, as well as checking off your grocery list to cook up a storm for those extravagant meals you're hosting.

It adds up doesn't it? And that's just the start of it.

Home renovations, new furniture, setting aside enough cash for duit raya (those green Hari Raya packets filled with money for the little ones); the list for what you've got to spend on for the holiday season can seem truly endless.

It's tempting to simply swipe your card, take home a purchase and forget about how much it can all amount to. But while spending a little more than normal for a seasonal holiday isn't a bad thing, overloading your credit cards isn't a great idea. Credit cards carry the highest interest of many types of financing, with rates as high as 25%.

A sustained period of overspending could really burden you with a huge credit card bill, and it's not the best idea to saddle yourself with such rapidly accumulative debt. It could give you more worries than happiness, and possibly ruin your Hari Raya celebrations if you're constantly thinking about how to clear your card balance.

Beyond the high interest rates, if you're not able to make your minimum required credit card payments, there will be even more costs that will snowball, such as late payment charges and higher interest rates as a penalty. This would negatively impact your credit rating, which isn't good for your credit history in the long term. And if you're only able to make the minimum card payments, you're really just paying the required interest and merely chipping away at the surface of the debt.

Most people think the only 2 ways to pay for your Raya shopping are by cash or credit, but there's another way that will spare you from both cashflow worries and high interest rates - a personal loan or financing. During times like Hari Raya, when you might need more funds at your disposal, there's HSBC Amanah Personal Financing-i. It's more helpful than having multiple credit cards to tide you through a Raya sale. For starters, its flat annual rate of 10.5% is much lower than that of general credit cards, and the allowable repayment period stretches for a significantly longer period of up to 7 years¹.

But more importantly, HSBC Amanah Personal Financing-i Balance Transfer will go a long way to ensuring your Hari Raya expenses will be properly paid off. As soon as your financing is approved, the approved amount will be directly credited into your other bank accounts to settle your credit card bills. Any additional funds can be used as helpful cash on hand to pay off other expenses or debts the festive holiday may have incurred.

Even if you don't have credit card debt, you can use HSBC Amanah Personal Financing-i to foot the bill for new furniture you may have bought to spruce up your home, as cash to place into duit raya packets or to pay for that Hari Raya gift you've been thinking about getting your parents.

So, enjoy the holidays with a personal loan or financing that will provide you cash on hand to make Hari Raya an amazing time for you and your family, all while avoiding the problems high interest credit card debts will bring. Ultimately, you'll want to make good memories with your loved ones for the festive season and keep the stress at bay!

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