KUALA TERENGGANU: More graduates are heading down the path to bankruptcy with their lavish lifestyles, according to the Credit Counselling and Debt Management Agency.
Sounding the credit alarm, its chief executive officer Azaddin Ngah Tasir said there were graduates who did not hesitate to swipe their credit cards to sustain living beyond their means, often buying the latest gadgets, cars, trendy clothing and flying off on holidays.
“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 said after signing a memorandum of understanding with Universiti Sultan Zainal Abidin here yesterday.
The agency, set up in 2006 to help individuals take control of their financial situation and promote the wise use of credit, will coach students on proper financial management.
Azaddin said that as of April 30 this year, 15% of the 429,588 clients seeking advice from the agency were aged between 20 and 30.
He said 75% of them earned below RM4,000 monthly, and about 52% did not know how to manage their finances.
“However, only 150,706 persons attended the credit management programme.
“Of these, about 80% of individuals repaid their debts after it was restructured by the agency,” he said, adding that the others failed due to “lack of discipline and resolve”.
Azaddin said credit card debts made up the bulk of cases at 70%, while the rest involved personal loans (15%), and car and housing loans (6%).
Elaborating on the agency’s success, he said as of the end of April, it had managed to “rescue” 10,197 of its clients from bankruptcy after they paid off debts totalling RM416.7mil.
Did you find this article insightful?