SIBU: The increasing number of youths below 25 declared as bankrupts calls for young people to practise prudent financial management.
Assistant Minister of Youth Development Datuk Abdul Karim Rahman Hamzah said being a bankrupt would limit a person’s movement and progression.
“It is sad to see youths being adjudged bankrupt at such a young age.
“Being a bankrupt will limit one’s movement and progression and to others who don’t have any positive ambition, it makes no difference to them whether they are adjudged bankrupt or not,” Abdul Karim, who is Asajaya assemblyman told The Borneo Post yesterday.
“One cannot spend beyond ones means. On the other hand, banks must not dish out loans easily to applicants without ensuring their capability to repay,” Abdul Karim opined.
“Additionally, banks must not take the easy way out of pursuing their legal recovery action on guarantors without fully exhausting their action against the borrowers as this has also contributed to a number of young ‘innocent’ parties being dragged into debts and bankruptcy when they offered themselves as guarantors.”
Meanwhile, Minister in the Prime Minister’s Department Nancy Shukri said most of the individuals face bankruptcy due to the failure to repay vehicle loans, personal loans and credit card debts.
According to Nancy, from January to June this year, 2,491 individuals aged 25 to 34 and another 4,121 aged 35 and 44 were declared bankrupt.
She said the government through the Credit Counselling and Debt Management Agency and Insolvency Department organised programmes for the community, especially youths in managing their finances and teach them to address bankruptcy.