The plastic age is upon us. Easy credit, pay as little as 5% per month. Ahh, the good life. Let us not look into the future. All will be well. Maybe not.

Three consumer associations in Malaysia are giving warning that total credit card debt is approaching a level which threatens Malaysia's future financial security. Many households now have credit card debt which is more than they earn in a month. The average credit card debt is approaching RM1,000, by some estimates.

Present spending affects future spending. If consumers are burdened with debt from past purchases, they will be unable to continue at the same level of spending into the indefinite future. Retail sales will drop. This is bad news for retailers in the megamalls. There will be retrenchments of sales people, and some stores will be forced to close. It is not unthinkable. The giant Sogo chain is now bankrupt.

There are two types of plastic credit cards. One allows you to borrow on a line of pre-approved credit up to an agreed limit. This is the dangerous one. This card can ruin your peace of mind, and keep you in debt for years to come.

The second type of card, the automated teller machine [ATM] is a great convenience, and is not a source of concern. The ATM card allows you to withdraw cash from your checking or savings account at remote locations around the country, and even around the world. Since it is not a credit transaction it does not put you into debt.

If you have the type of card that can place you in debt, consider carefully whether you really need this line of credit. You have lived without it so far, and you can continue to live without it. So if you can live without it, don't apply for it.

If you already have one, pay it off and close the account as soon as possible. If there is already a large balance you cannot pay at once, consider borrowing from another source and pay off the credit card. It is a time bomb ticking in your purse or wallet.