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Youth: Bankruptcy and Blacklist

Prevention is Better Than Cure

 

The story of a man who was only in his 20s when he committed suicide after coming under pressure to settle a RM13,000 debt with a bank, is nothing short of heart-breaking. At his funeral, someone was overheard saying: “If only he had sought the help of AKPK, he would be alive today.”

Indian youths in Malaysia have very big dreams. The dreams that they want to achieve in very short period without investing hard work. The trend of our Indian youth is when they started getting the salary of just RM 3500, and within the next 3 months they already owned an iPhone or Samsung Galaxy Note worth RM 2000 plus followed by a Vios, City or Civic if they have their parents backup. Moreover not forgetting credit cards. Youths love having credit cards. They feel very proud when they swipe credit card infront of relatives or friends without realising they have to pay end of the month. But wonder from where they are going to get the cash to pay? Due to this, many of our Indian youths are blacklisted and declared bankruptcy.

With the rate of youths, aged 25 and below, declared bankrupt in the country is becoming increasingly worrying with 579 individuals recorded in the first six months of this year. Minister in the Prime Minister’s Department Nancy Shukri said most of the individuals faced bankruptcy due to failure to repay vehicle loans, personal loans and credit card payments.

“The number, out of the total of 12,381 individuals declared bankrupt, was an increase from 208 individuals last year,” she said at the ‘Young Generation Information Empowerment’ programme, organised by the Johor Youth and Sports Department and Prime Minister’s Department here today.

From January to June this year, she said, 2,491 individuals, aged 25 to 34, were also declared bankrupt and another 4,121 individuals, aged 35 and 44. She said the government through the Credit Counselling And Debt Management Agency and Insolvency Department organised programmes for the community, especially youths in managing their finances wisely and teach them to address bankrupcy.

Hence, she urged individuals or youths to get advice or early help from the relevant agencies if they had been declared bankrupts. “Based on feedback obtained from organising several programmes previously, we found that the majority of youths are not aware of the services and assistance provided by the government resulting in them being bankrupt at a young age,” she said.

Our youths should have proper financial planning before they commit anything. It is very important for the youths to get advice from financial professionals to manage their finance appropriately. Instead of aiming for immediate luxury life, youths should be wise and learn to safe money first before spending it immediately.

In Malaysia, with a very high dependency on car ownership due to the largely unreliable public transport system, especially for office and factory workers, there’s a pressing need to price our own Malaysian made cars to be more affordable to the average wage earner. It’s a well-known fact that young Malaysian wage earners easily spend 50% of their salary on monthly car instalments. Coupled with fuel and maintenance costs, it’s quite a burden. Knowing this our youths should be very much alert in moving every penny of their hard work.

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