You know the age-old saying, ‘The cars we drive say a lot about us’? Well, that huge debt you’re owing the bank says a lot about you too.
According to (disturbing) statistics from the Insolvency Department, which was made available to theSun, one in four bancruptcy cases in Malaysia is caused by defaulting on vehicle-loan repayments.
According to the report, about 28,374 bankruptcy cases (27.94%) that the department had recorded between 2011 and 2015 fall into this category.
The second most common cause of bankcruptcy is housing loans (with 21,697 cases or 21.36%), followed by personal loans (20,727 cases or 20.41%) and business loans (11,899 cases or 11.71%).
The statistics also revealed that 35.24% of the bankruptcy cases involved individuals aged between 35 and 44. Individuals in the age range of 25 and 34 accounted for 22.52% of the cases, while only 1.25% of the cases involved those aged below 25 years.
Meanwhile, our own Coconuts KL statistics show that 100% of these cases are made up of individuals who have very poor financial planning, so please re-consider before you decide to splurge on that brand new Honda City on your RM2,500 salary.
