Boy, Malaysians sure have poor financial planning.
A total of 1,022 credit card holders in Malaysia are declared bankrupt for reportedly failing to settle their credit card debts.
Deputy Finance Minister Datuk Othman Aziz told Bernama that the credit card defaulters reportedly failed to pay their debts from January to June this year.
The amount, according to Othman, represented 0.03 per cent out of the total of 3.6 million credit card holders in the country.
To curb the trend of Malaysians failing to settle their credit card debts, Othman told the news agency that Bank Negara Malaysia (BNM) had introduced several conditions for the issuance of credit cards.
“Minimum income eligibility for credit card holders is raised from RM18,000 annually to RM24,000 since March 17, 2011.
“Credit card holders earning RM36,000 annually or less can own credit cards from two card issuances and have a maximum credit not exceeding twice the monthly income,” Othman was quoted as saying.
Well, this is not the first time that Malaysians’ poor financial planning has dominated headlines.
Earlier this year, the Insolvency Department revealed that one in four bancruptcy cases in Malaysia is caused by defaulting on vehicle-loan repayments.
