The reality of today’s world sees people working and striving day and night to find pleasure and comfort in life. It has become natural for people to long for a perfect life by driving a car, living in a house equipped with sophisticated furniture and facilities, dressing and so on. However, not everyone can enjoy the beauty and pleasure of the world even after working hard and struggling to earn a living.

On average, people have to go into debt or make financial loans to enjoy a more comfortable standard of living with the aim of having basic needs such as vehicles, houses and so on. There are also those who are in debt for the purpose of venturing into business or expanding their business empire. In fact, it seems to have become a trend in today’s world, many people are forced to get financial loans for the purpose of furthering their studies or getting an education funded by certain parties. In this situation, a person can go into debt but the amount of the debt must be proportional to the amount of income where the individual can pay off the debt and live life with the remaining income.

The burden of debt incurred is usually caused by the attitude of the individual himself who fails to discipline himself to pay off payments or spend and make loans beyond his income. The act of giving aid to those who are in debt illegally is feared to fuel the activity of giving loans. People who are burdened with debt do not feel calm and free if a large part of their income has to be used to pay various types of debt. No one wants to live in debt. Debt is actually closely related to a person’s spending habits. Not to mention for those who are experiencing deficit spending, of course it is more painful. Waiting for the next salary is the hardest time.

During the festive season, school holidays and the end of the year before the new school session starts, more debts are incurred, or indeed Malaysians need help to manage loans or debts due to lack of knowledge, skills in matters of personal financial management and an attitude of not caring about debts incurred? Financial education is seen to be able to help the people or consumers face the uncertain local and global economic situation and be able to deal with personal and family financial crises that are getting worse.

Usually what makes a person desperate or need to go into debt is when:

· Loss of Main Source of Income
Cases like this often cause family members who are left behind to pay off debts or personal loans that are still ongoing.

· Job Loss
Losing a job is a nightmare and the most feared. Because of this the borrower is unable to complete the existing loan.

· Expenses for medicine
This is another type of unexpected debt. Maybe our mother or father suddenly went to the hospital or we ourselves had a minor accident. Hospital bills often reach thousands of ringgit.

· Do not make a budget
Without a proper strategy or budget, we will not know how much we can spend and how much we need to save.

To debtors, don’t ever run away from the person you owe, instead face them and explain your true situation. If you are unable to pay the entire debt, pay it little by little in installments and most importantly record all the debts. If you are not disciplined in planning your expenses, you will still not be able to solve the problem. Try to discipline yourself by paying debts consistently, not incurring new debts as long as bad debts are not settled and stay away from taking out loans as they ‘trap’ borrowers with burdensome interest rates.