41 New Bankruptcy Cases Daily | Ramblings of an e-trader

Saturday, 9 March 2013

41 New Bankruptcy Cases Daily

I read an article which said that according to Malaysia's Insolvency Department, 41 Malaysians are declared bankrupt daily. Most of them who went bankrupt are below the age of 44. They were unable to pay off their car loans, poor control of credit card usage and failure to pay off personal loans. 

This is hardly surprising, especially the poor control over the usage of credit cards. Hence, the controls set by Bank Negara, where people who earn a certain amount only could obtain a credit card, and each person could only hold two credit cards at any time. 

I know of people who take out personal loans, and they do so to settle their other existing loans! I find that a little absurd as it means they are digging a larger hole. Unless they strike lottery, it will be very tough for them to be totally debt-free.


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