These are just those who sought help from The Credit Counselling and Debt Management Agency (AKPK). In a news report in Bernama, AKPK said that as at Oct 2016, it has successfully solved some 11,672 management and financial restructuring cases amounting to RM476.6mil through its Debt Management Programme (DMP). DMP is a programme by AKPK which will help borrowers to restructure their housing, vehicles and personal loans including outstanding credit card balances. These are the successful ones. Another 97,215 did not make it and became a bankrupt. The numbers are as at September 2016. Scary? Well, we should not be too alarmed these days when we look at how the youths are spending their money. It’s as if tomorrow will never come.
Of those declared bankrupt, 22,581 individuals were from Gen-Y and there were 1,157 cases involving those below 25 years of age. Major reasons for the bankruptcy was failure to repay loans for hire-purchase of vehicles, which constituted 27.6%, followed by personal loan defaulters at 22.8% and housing loan defaulters which made up 19.4%. No prizes for guessing if they overstretched themselves. Two major reasons were cited for the potential for one to become a bankrupt; lack of education and poor financial planning. These contributed to the failure to control their finances. According to the Asian Institute of Finance, the financial education level among youths is low, with only 28% of them confident of managing their finances, while 58% have moderate financial knowledge.
If I could wish, I hope that all universities would provide some financial knowledge to their students before they graduate. I believe very firmly that this is not the time toby blind, deaf and dumb about financial awareness. Read here Lacking in financial awareness today? Peril awaits If I could ask, I think everyone should keep reading more and start sharing all the free resources that they have so that more people can benefit. I still have high confidence that once people are aware, the chances that they would become bankrupt is lower. After all, we want to look good in front of our peers but if we overspend and become a bankrupt, I think that smartphone in our hand is nothing to be of much help. Cheers.
written on 6 Dec 2016
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