Tighten your belt!

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I wonder what kind of methods of payment you guys use in your everyday lives. Such as when you eat lunch, when you want to drink a cup of Americano at Starbucks, or when you have to buy a notebook for taking down your lectures. I, myself have been using debit cards for almost 8 years. I use a debt card even when I make micropayments as minimum amount of payment you need to make using a check card is 1,000 won which is less than a dollar. Growing popularity of credit cards has led some credit card users to spend beyond their means.

Tighten Your Belt - Austerity

To address this problem, the financial authorities tighten regulations on credit card usage and demand credit card companies to curtail collateral benefits they have been offering to customers to increase card issuance.

From this month, Korean credit card companies are repealing services for that allowed raising credit line bounds of all credit cards. In other words, customers that are in need of emergency fund would be hard to raise their ceilings. Credit line companies autonomously cancel all credit cards that haven’t been used for more than a year and customers would be able to get back residual annual dues. According to credit card companies, they have sent amended standardized agreements to all customers through their emails and other mediums. This revision is provided Financial Supervisory Service (FSS) in order to stop indiscreet usage of credit cards and at the same time, to protect rights and interests of customers.

The part customers have to take a close look among the revised standardized agreements is the limits of credit cards usage. Existing provisions have allowed customers to get raise their credit limits on special occasions such as marriage and funeral expenses that require substantial size of money depending on its credit rating. But as the provisions are revised now, it seems customers won’t be able to benefits anymore so all the customers have to always remember their credit bounds whenever they make finance-related dealings whether small or big. If a credit card company has made a notification that your credit card is to be canceled and you do not make volition to use credit card continuously, credit card is to be automatically canceled in 3 months.

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But on the other hand, customers that wanted to cancel their credit cards but did not because of their annual fees, now would not have to be burdened to do so! As I have mentioned ahead, they will be able to get their refund their fees. Also, if you want to cancel before expirations dates, you will be able to get your paid annual fees according to companies’ rational standards but one thing to remind here is that, if you have used vouchers and levy services that have already made valid dealings with alliance businesses, payback is impossible. Some of you might say that the provisions that are revised might be a behind the eight ball but that’s not it, if you look at the provisions carefully, there are lots of benefits and changes that might be profitable and favorable. So, tonight, think careful and sharp to make reasonable schedule on your financial managements!

 

By Hyokhee Kwon (kwonhyokhee@naver.com

 

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