Fresh grads in debt due to high-maintenance lifestyles
Credit Counselling and Debt Management Agency says many young Malaysians think nothing of swiping their credit cards to finance their desired lifestyle.
KUALA LUMPUR: The high-maintenance lifestyles of fresh graduates has led to many finding themselves in financial debt even as young adults new to the job market, says the Credit Counselling and Debt Management Agency (AKPK).
Speaking at a press conference, the agency’s CEO Azaddin Ngah Tasir told reporters that this group often thought nothing of swiping their credit cards to support their lifestyles, which unfortunately led them down a “trail of debt.”
He said it was “not right” to borrow money – which was essentially what fresh grads ended up doing every time they used their credit cards to finance their luxury lifestyles.
“The loan interest is often very high. That’s why fresh grads can’t make ends meet when they start using credit or personal loans to finance their lifestyles.”
He said that debts accumulated by young adults often started with education loans, and were quickly followed by car loans when they start working and credit cards loans soon after.
“Some things are beyond our control. But what is within our control is our daily expenses.
“When you do not use credit cards wisely and instead use it to finance your lifestyle, it is going to become an issue.”
In a bid to tackle this alarming issue among young adults today, the AKPK launched a series of financial education videos for social media aimed at spreading awareness about the importance of prudent financial management.
Azaddin said social media was the agency’s platform of choice as statistics showed the average Malaysian above 18 years of age spent 20 minutes every day online watching videos.
“We are targeting this group to make sure they get the right information on spending wisely.
“Because with the income graduates earn, they cannot afford any missteps as it will lead to financial distress.”
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