When hearing about bankruptcy or bankruptcy, many people are afraid and become horrified! Bankruptcy can occur due to various factors such as failure to pay credit cards, personal loans, housing loans and so on. According to research, most Malaysians who are declared bankrupt are between the ages of 25 and 44.
The high rate of bankruptcy is due to making loans for personal use instead of investment and wealth accumulation and this is increasingly worrying. It occurs among young borrowers who have limited financial knowledge and are not very financially literate.
You must have noticed the disease that plagues young people in Malaysia right now? Is this life just driving a luxury car or spending money to buy goods from international brands. If you feel yes, it is an early symptom towards bankruptcy. The act of spending beyond the income limit is apparently not a wise act in individual finances.
If you think you are about to be declared bankrupt, follow the tips below to find out how you can get help and restore your financial situation.
1. Get Free Professional Help
If you are facing problems in managing debt and paying off loans, you can get help from the Credit Counseling and Management Agency (AKPK). AKPK was established by Bank Negara Malaysia to offer services for free. The services offered are financial counseling and advice, debt management programs and financial education programs.
2. Discuss With Creditors
If you face problems in making loan payments, consult with your bank. Talk to the bank and formulate a repayment flow that you can afford.
3. Asset Revaluation
Apart from reducing your expenses, you should consider using your savings to pay off debts or loans. You should also consider withdrawing money from investments if any to reduce existing debts and loans as this will help to avoid being declared bankrupt. If you have various assets, sell them and use the money to clear your debts and loans.
Early disclosure of financial savvy to young people should be done as a preventive measure. This knowledge needs to be nurtured and practiced in order to be able to strengthen the finances of young people.
Looking at the increasing cost of living these days, there is no doubt that bankruptcy has become a common phenomenon. This problem should be curbed from the beginning so that it does not affect the youth in the future. Before you take a loan or go into debt, do not panic because you should make sure to get a loan at the lowest interest rate and measure the clothes on your own body not with the intention of improving social status among peers or society.