Essay About Car Loans And Young Peoples Bankruptcy

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Why does a person go bankrupt? When a person has a debt of RM50,000 or more, the debtor will declare his bankruptcy. In recent years, the number of bankruptcies under the age 35 in Malaysia has risen year after year. The reasons for these young peoples bankruptcy are mainly due to the inability to repay credit card debt, personal loans, car loans and housing loans. According to the data, 37% of the youth lives overrun, while up to 47% of people use more than one-third of the salary to pay the loan. And these debtors will bring a variety of reasons for various reasons.The one reason that influence of bankruptcy to the people who under age 35 in Malaysia is credit card purchasing behavior. It is because of the uncontrollable attitudes that the people in the categories of early ages become a big spender. When a person cannot estimate their expenses every month or they cannot control their attitudes to use a credit card, then the installment debts that they were faced would be higher. Nowadays, students are also facing bankruptcy by using the credit card. From the result, we can know them do not read clearly the credit card term. By the way, they also have no the knowledge about personal finance. To avoid being a bankrupt, they must do a bookkeeping for estimate their expense, have bank savings per month, use the credit card appropriately, learn to invest and so on.     People who under 35 ages have a lot of loans that cannot be paid, the main reason is that they borrow the loan that they no have the ability to pay back, it causes the car loans, mortgages and personal loans cannot be pay off. In this generation, younger people become more vanity and love to compare with others.Therefore, some cheap domestic cars and second-hand housing or small houses have been despised by younger people. An example of a real life, a company have four employees, employee A is living in a wealthy family, his family bought him a Japanese car, so other colleagues also bought the same car, but the monthly car loan has been close to their salary of 70%, even so, they decided to buy the Japanese cars, all of this is only making them feel dignified,  this will also become a social problem today.