We know that most Malaysians suck at saving for retirement, but more alarmingly, the younger generation is following in their footsteps.
According to figures released by the Credit Counselling and Debt Management Agency (AKPK) which was picked up by The Star Online, a high number of fresh graduates are facing bankruptcy due to their lavish lifestyles.
AKPK’s chief executive officer Azaddin Ngah Tasir told the news website that the trend was alarming, as there were graduates who did not think twice about swiping their credit cards to buy the latest gadgets, cars and designer clothing.
“Having just graduated and found a job, the generation aged below 30 embarks on a lavish lifestyle to keep up with peers. Such a journey without proper financial management only leads to massive debt, and eventual bankruptcy,” he was quoted as saying.
Azaddin was further quoted of saying that as of April 30 this year, 15 percent of the 429,588 clients seeking advice from the agency, set up in 2006 to help individuals manage their financial situation, were aged between 20 and 30.
He also added that 75 percent of them earned below RM4,000 monthly, and about 52 percent admitted that they didn’t how to keep their finances in check.
“However, only 150,706 persons attended the credit management programme. Of these, about 80 percent of individuals repaid their debts after it was restructured by the agency,” he told The Star Online, adding that the agency has so far helped 10,197 people from going bankcrupt.
At 70 percent, credit card debts made up the bulk of cases, while the rest involved personal loans (15 percent), and car and housing loans (6 percent).
