Frugal Honey

Debt Management

Debt and Depression

There’s no denying that debt is debilitating and has ruined one too many lives, but the effect of debt on a person’s psyche was once again brought to the spotlight with the recent news of the suicide/ murder of the Hsieh family.

The news outlets say that the family’s business went bankrupt and with their mounting debts with loan sharks and the knowledge that under Taiwanese law their children will inherit their debt, the parents deemed it best to just kill their children and themselves.

I’ve heard people ranting about how death was not the only solution that they could have pared down their belongings and sent their children to less expensive schools in order to pay their debts down. And those are very valid solutions, but the thing is, you don’t really think rationally when crippling debt gets a hold of you and drags you down into deep depression.


Guest Post: The Merits and Demerits of Buy Now Pay Later

*Buy now pay later schemes are still not that popular in the Philippines, but they’re slowly making their presence felt, particularly in appliance stores. This post from Catalogues 247 should give us the lowdown on what to expect with such schemes, to see if this is something that we can use to our advantage.

Today, Buy Now Pay Later schemes, as well as other types of in- store credit managements, are on the increase in the UK. Simply put, in-store credit refers to the arrangement of buying goods or services in credit and then paying for them later. This facility is only available in certain stores or groups of stores. However, not many people think adequately about these schemes before opting for them. This kind of arrangement has both its advantages and disadvantages. Read on to find out about them:


The Truth About Credit Card Interest Rates

The thing about credit cards is that they make your daily life so convenient. Swiping for anything is so easy and the banks make it look so fun and glamorous, that before you know it, you’re way above your head in debt.

But here’s one thing the banks don’t want you to know. You know those interest rates, penalties and charges in your credit card Terms and Conditions? Those penalties they slap on your account whenever you miss out on a payment? Those are illegal.


Credit Card Resolutions for the Chinese New Year

*Guest Post

The year 2014, according to Chinese horoscope, is the Year of the Horse. It is considered to be a very lucky year when it comes to money matters, particularly those born under the animal signs of the Horse, Rat, Rabbit and Rooster—at least, as believed by those who practice feng shui.
But of course, regardless of what your animal sign is, improper credit card management is only bound to lead to some really unpleasant consequences, lucky year or not. These consequences may include collectors bugging you every other day, or worse, getting deeper in debt trying to pay off previous credit card debts.
With 2013 coming to a close, leave behind some bad credit card habits and take up some new, good ones. It would be an even better idea if you include a promise to get out, and stay out, of debt in your New Year’s resolutions! This 2014, resolve to:

Pay more than the minimum amount.
If you have credit card debt, you may want to pay a little more than what you’re expected to pay on a monthly basis. By making higher payments, you can eliminate your credit card debt faster than it would take if you opt to just pay the minimum. Paying more than the minimum also helps you avoid accumulating more debt on interest.
Avoid unnecessary purchases.
There are certain signs in the Chinese horoscope, particularly the Dog sign, that are also predicted to have an excellent year ahead—financially and professionally—but will have trouble saving money. Don’t let these predictions deter you from achieving your goal to save more this year, by making sure to limit the use of your credit card to important purchases only.
Create a timetable for paying off your debts.
The Year of the Snake has come and gone, and 2014 promises to be a crucial year for the Snake sign. A snake’s loyalty can be proven over time, and time is something that’s also crucial to your credit card management. If you’ve a sizeable credit card debt, it would be a good idea to establish a specific timeframe wherein you intend to pay off that debt. Make sure your timetable is a realistic one. Otherwise, it’ll only be another source of stress for you.
Stop using cards that have balance.
Certain animal signs, like the Rabbit for example, are predicted to have a 50-50 year when it comes to money. Because of this, it might be a good idea to stop using cards that already have a tremendous balance to avoid getting buried deeper in debt. On a year that can go either way when it comes to luck, it’s best not to take chances.
No matter what animal sign you may fall under, or how seriously you take the Chinese Zodiac signs, one thing is for sure: you definitely need to establish a more disciplined approach to your credit card use and management. Doing so will definitely lead to a prosperous 2014, regardless of your sign.
* MoneyMax is the Philippines’ foremost online platform for comparing financial and telecom products and services – fast, comprehensive, and free. We aim to give the power of smart purchase decisions back to Filipino consumers by providing everything they need to become financially savvy. Find out more at

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