PETALING JAYA: Bad borrowing decisions cannot be used as an excuse when people fail to fulfil debt obligations in high price purchases, which can lead them to be declared bankrupt, says MCA Public Services and Complaints Department head Datuk Seri Michael Chong.
Chong said that in many cases, those with huge debts would come up with excuses for their bad borrowing decisions which eventually lead to financial problems.
“You cannot claim to be ignorant as it is not an excuse. They need to manage their borrowing decisions,” he said.
He said most of the cases involved youths, and this year alone, more than 30 bankruptcy cases were still pending in court.
“This is worrying as it involves young people who cannot service their debts. Most are involved as guarantor for car purchases while some are living beyond their means.
“They usually go overboard thinking they can service a loan by applying for another loan.
“It does not make sense. They need to manage their finances properly,” he said.
In many cases, it involves the victim becoming a guarantor for a family member or friend.
“They sometimes volunteer to become guarantor for their families, buying cars. But when the other party disappears, the authorities will go after them,” he said.
“It will affect relationships and even break up families.”