41 young workers declared bankrupt daily!

Last year I posted about the number of bankrupt individuals in Malaysia which stood at 235,908 as of October 2011. [read about it: here]

Going by what you can read on the front page of one of the local dailies (pictured below) the situation did not seem to have improved. More worrying trend is that most of them are young people.

60% of young workers are seriously over-indebted! Daily Express, 26-11-2012.

Alliance Bank Malaysia Berhad, ABMB, in an interview with Daily Express revealed the followings about Malaysians' financial management habits:

• 41 young workers are declared bankrupt every day.
• 60% of young workers are seriously over-indebted as a result of over-borrowing. Many have filed for bankruptcy.
• 72% of consumers have no retirement plan.
• Retirees are found to be using up their EPF savings within 3 to 5 years.

The interview did not elaborate in greater detail but these figures should give you a kind of heads up on spending habits of many Malaysians. If you a not part of the above statistics, congratulation! But if you fall under the over-borrowing/over-spending category, this should be taken as a reminder to you. If you must borrow, do so responsibly.

A piece of advice from ABMB: Parents should not have credit cards issued to their children but instead, use debit card or prepaid card. This will curb indiscriminate spending by the schooling children.

Related story: More Than 235,000 Individuals Declared Bankrupt