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Missing a credit card payment is awfully painful.
After a few months I returned to Malaysia and started a new job. Around the same time, my dad had a emergency health issue and had to be admitted to the hospital. I was overwhelmed.
I was still adjusting to a new work environment, and suddenly I had something much bigger to worry about. I used my credit card to pay the hospital bills, which was around RM20,000.
With so much on my mind, I missed my credit card payment. The interest was RM100 per day!!
That means every single day I missed the payment, the bank earned RM100 from me. I was shocked.
The True Cost of Credit Cards
When we take on car loans or housing loans—commitments we carefully think through—the interest rates are usually around 3%–5%.
Credit cards rates, on the other hand, are around 13.5%-17.5%.
That’s a huge difference.
Globally, credit card rates have caught many attention from regulators, including the U.S. and Bangladesh. Each countries have revised the cap amount for credit card loans, in the hope of easing the burden on consumers.
In Malaysia, however, the cap amount for interest rate of 18% has maintained since 1998.
Overall credit card debt in Malaysia totals more than RM50 billion as of Sept 2025, and 28% of adults have borrowed money to make purchases.
Deputy Finance Minister Lim Hui Ying mentioned that the situation is still manageable. It is expected that no regulation changes will be make in the near future.
In other words—it’s up to us to protect ourselves.
How Malaysia Compares Globally
Here’s a quick comparison of typical credit card interest rates:
| Country | Typical Credit Card Interest Rate (APR) |
|---|---|
| 🇲🇾 Malaysia | 15% – 18% |
| 🇺🇸 United States | 20% – 25% |
| 🇧🇩 Bangladesh | 20% – 30% |
| 🇯🇵 Japan | 15% – 20% |
| 🇨🇦 Canada | 20% – 30% |
| 🇦🇺 Australia | 18% – 25% |
| 🇹🇼 Taiwan | ~15% |
| 🇨🇳 China | 15% – 24% |
| 🇸🇬 Singapore | 24% – 26% |
Malaysia is actually on the lower end—but that doesn’t make it cheap.
What I Learned: 3 Ways to Avoid Missing Payments
After the incident, I figured out that there are 3 ways to avoid missing credit card payments going forward:
- Cancel my credit card and switch to debit card
- Set up calendar reminder
- Set up Auto Debit
I want to have some record on my credit score, thus #1 is out of the picture. #2 seems like a good idea, but it does not eliminate risk—especially in situations where you’re overwhelmed or unable to act (like being hospitalized).
#3 is the best solution.
I set up auto debit since my credit card and savings account are with the same bank. At the same time, I still keep a monthly reminder to review my statement before payment is deducted.
‘Good Financial Planning = Money Save Money for You’
We always talk about passive income,—how money can make money while we sleep.
However, I think how money help us to save more money is equally important.
Setting up something as simple as auto debit not only give me peace of mind. I know that even if something unexpected happens, I won’t accidentally create a financial burden for myself or my family.
With a few clicks and we can own a credit card.
With a few swipes, we can owe the bank money.
Managing your payments properly doesn’t just protect you—it protects your family from falling into unwanted debt.
Because sometimes, the biggest financial mistake isn’t overspending—
It’s forgetting to pay.
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