Fads a debt trap for youths

THE statistics of youths in debt are shocking. Last year’s UCSI Poll Research Centre revealed that 73% of Malaysian youths are in debt and do not have sufficient funds to meet their financial commitments.

Youths should learn to watch their budget closely, particularly with the ease of using credit cards and credit facilities such as buy now, pay later (BNPL) these days.

Many do not keep track of their expenditure until the end of the month when they receive their bills. Furthermore, they seldom consider the effects of compound interest charged on the amount they owe.

They may not be able to obtain bank loans when they have a record of poor repayment history with a credit reporting agency.

Youths have the tendency to fall for fads, which can lead to increased consumption and waste. One such example is the launching of a new product whereby people would even camp outside stores to make sure that they don’t miss the “opportunity of a lifetime” to purchase something that they can do without.

If consumers are to stand back and look at their purchases and financial commitments, they might see that they are vulnerable to fads.

The Consumers’ Association of Penang urges youths who are in debt to seek help from the Credit Counselling and Debt Management Agency (AKPK).

Those who realise that they are heading towards a debt trap should start looking at their monthly budget, pay off whatever they owe and trim down their expenses.

The Education Ministry should include a course on financial management in upper secondary schools.

MOHIDEEN ABDUL KADER President Consumers’ Association of Penang