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According to a research by the Malaysian Consumers Associations (FOMCA), those who are facing bankruptcy due to credit card debts are mostly aged below 30. We suggest a few useful tips to prevent you from facing bankruptcy.
1. Financial literacy.
Parents should instill financial education among their children at a young age. Managing your finances should require you to be well-equipped with the knowledge and education on the ins and outs of finances.
2. Spending plan.
Living within your means is one of the effective ways one can experience financial freedom. When you have a budget, you will tend to stay on the safe side when it comes to spending. It is vital to avoid unnecessary expenses that will result in overspending. Spend within your budget. Set up some rules to keep your financial moves on track.
3. Emergency fund.
You must always have some extra cash during emergencies. Be prepared for the unexpected. You should always set aside some savings for your medical bills, car repairs etc.
4. Avoid using credit cards.
By right you should know that credit card debt is one the major contributing factors to the increasing number of bankruptcies in our country. Use a debit card instead to get yourself used to your financial management. Only use credit cards when you feel there is a need or a better discount or promotion associated with it.
5. Pay in cash.
Purchasing something in cash will prevent you from overspending. Spending irresponsibly will get you into unnecessary debt. When you pay in cash you will be able to track and monitor easily on what you can afford.
INFOGRAPHIC
Total number of bankrupts as of December 2013 was 253,635.
Number of bankruptcy cases
2007 - 13,238
2008 - 13,855
2009 - 16,228
2010 - 18,119
2011 - 16,167
2012 - 19,525
2013 - 21,987
2008 - 13,855
2009 - 16,228
2010 - 18,119
2011 - 16,167
2012 - 19,525
2013 - 21,987
Causes of bankruptcy between 2007 and 2013
1. Sale and purchase of vehicles – 30,451 cases (26.14%)
2. Housing loans – 20,529 cases (17.62%)
3. Personal loans – 18.053 cases (15.5%)
4. Business loans – 14.431 cases (12.39%)
5. Credit card – 4,875 cases (4.18%)
2. Housing loans – 20,529 cases (17.62%)
3. Personal loans – 18.053 cases (15.5%)
4. Business loans – 14.431 cases (12.39%)
5. Credit card – 4,875 cases (4.18%)
Bankrupts between 2007 and 2014
aged 25 and below - 1,895 cases
aged between 25 and 34 - 25,552 cases
aged between 25 to 55 – 126,497 cases
aged between 25 and 34 - 25,552 cases
aged between 25 to 55 – 126,497 cases
We also provide other various Financial Information such as, MyFinance Budget Portfolio, Personal Finance, Housing Loan, Personal Loan, Credit Card, Sharper Shopper, Calculators. For more information please visit our website MyFinance.com.my
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