Since “Financial Planning with ASB, OD and Credit Card” become the most popular post in bebas-hutang.com for this moment, let me elaborate more how this financial planning help to clear your debt or improve your financial.In previous post, I did mentioned that if you don’t have any cash, apply for personal loan to settle your credit card debt. Some people would say, “Apply loan to settle credit card? Doesn’t make sense”. Actually I already proved that interest you need to pay with personal loan is much lower that credit card’s interest. See this post => How to settle credit card debt?
Now I’m going to show you how ASB and OD are working with personal loan.
Let’s say,
*Credit card debt/outstanding balance is RM5,000
*Apply personal loan RM10,000
Method 1 (ASB only)
Settle credit card debt with cash from personal loan. Invest balance RM5,000 into ASB.
Personal loan details:
*Loan amount = 10,000
*Interest per annum = 6.8% (from Bank Islam)
*Total loan for 5 yrs = 13,400
*Pay for interest = 3,400
ASB details:
*Starting investment = 5,000
*Return after 5 yrs = 7,439.34
Method 2 (ASB + OD)
Apply personal loan RM10,000, debit into ASB, convert to Certificate, and apply for OD. Then settle credit card debt (RM5000) from cash in OD.
Personal loan:
*Pay for interest = 3,400
OD (Interest = BLR = 6.75% per annum):
*Pay credit card from your OD. OD outstanding balance = 10,000 – 5,000 = 5,000
*Date 1st, debit total income (husband & wife) 3,000 into OD account.
*Date 3rd, withdrawn 1,000 from OD for daily expenses.
*Date 13th, withdrawn 1,000 from OD for daily expenses.
*Date 23th, withdrawn 1,000 from OD for daily expenses.
*Interest calculation for 1 month
1st – 2nd   : Outstanding balance = (-5,000) + 3,000 = (-2,000)
: Daily interest = 0.37
3rd – 12th  : Outstanding balance = (-2,000) – 1,000 = (-3,000)
: Daily interest = 0.55
13th – 22th : Outstanding balance = (-3,000) – 1,000 = (-4,000)
: Daily interest = 0.74
23th – 30th : Outstanding balance = (-4,000) – 1,000 = (-5,000)
: Daily interest = 0.92
*Total interest for OD for 1 month = 21.08
*Repeat this for 5 yrs. Total interest after 5 yrs = 1,294.93
ASB:
*Dividend from starting amount 10,000 (certificate) after 5 yrs = 4878.69
Profit/lost after 5 yrs
Method 1 = 7,439.34 – 3,400 = 4039.34
Method 2 = 4878.69(ASB) – 3,400(PL) – 1,294.93(OD’s interest) + 5000(OD) = 6478.69 5183.76
By apply Method 2, your cash increase to RM6478 RM5183.76 compare to RM4039 if you just invest into ASB. With this simple example, you could understand now what people says, “money makes money”.
If you using ASB+OD+CC as what I’m practicing, you could create more money and maximize your saving.
Note: All calculation above is just an example and I won’t guaranty if you don’t get exactly amount as above. Its also not a guide for you to do financial planning. Advise you to looking for a Financial Planner/Advisor for proper planning based on your financial status. (I’m not certified financial planner/advisor…just a financial maniac 
. But feel free to ask and I’m happy to help with my small knowledge.)
