Do you know that personal loan is the leading cause that has driven Malaysians into bankruptcy?
Statistics from the Malaysian Department of Insolvency showed over 95,000 individuals have been declared bankrupt between 2014 and 2018, after failing to honour their borrowings with lenders.
The main cause that dragged them into insolvency were personal loans (27.76%), followed by hire purchase (24.73%), housing loans (14.09%), and credit card (9.91%), according to a report by The Malaysian Reserve.
What is personal loan?
A personal loan is an unsecured loan from a bank, credit union or licensed money lender, used by a borrower for personal reasons. A borrower has to pay it back in fixed monthly payments.
Why you should make the monthly repayments on time
Paying back on time improves the borrower's credit score. With a good credit score, applying for a personal loan can get easier (with no collaterals, personal loans are not easy to get).
With a good credit score, a borrower can get lower interest/profit charges on their loan.
With good credit score, a borrower can also get a higher credit limit, and a peace of mind.
What happens if you don't make the monthly repayments on time?
When a borrower fails to make the repayments on time, late payment chargs will apply after a 1 month default.
Is there a solution for defaulters?
Yes there are several solutions.
Negotiation with banks - A borrower can negotiate the debt down to a large one-time payment
AKPK - The Credit Counselling and Debt Management Agency (AKPK) will be able to restructure repayments through a debt management plan for a borrower to regain control of their loan.
Asset liquidation - A borrower could possibly liquidate their assets and file for bankruptcy.
Source : SlideShare/AzharFahruddin, Finder.com, The Malaysian Reserve
Photo source: Wallethub.com, huffpost.com
Thu Nov 14 2019
These Four Things Could Make you a Bankrupt!
These are the four things that could land you in a bankruptcy.
'Kootu': Is it Illegal to Play this 'Quick Cash' Scheme?
Playing 'kootu' is a common method for Malaysians to raise quick cash. But do you know that you can get into trouble with the law for organizing or participating in this scheme?
Six Simple Ways to Save Money
How much you earn does not really dictate how much you can put aside on a monthly basis. Here are six simple ways for you to save money.
Why You Should Pay Your Credit Card Bill On Time
This is why you should pay your credit card bills on time.
Five Ways you Can Generate Side Income
Here are five ways you can earn some side income without quitting your main job.
Putrajaya Revokes Liquor Licence Directive For Eateries
Putrajaya has agreed to revoke the licence requirement for eateries to sell alcohol from next year, Transport Minister Wee Ka Siong has confirmed.
Gain Tips to Grow Your Business With This Namma SME Webinar
Gain tips to grow your business with this instalment of the Namma SME webinar on Aug 18, jointly brought to you by Astro Ulagam, Quake, and RAAGA.
Get SME Funding Tips With the Lights! Finance! Action Webinar on Apr 8
Get tips to fund your small and medium enterprise, from the experts, on the Lights! Finance ! Action. SME Business Funding Made Easy webinar on Thursday, April 8.
Boost Your Marketing Techniques By Joining the LEVEL UP Webinar!
Join the LEVEL UP! – POWER Your Way To Profit Through Clever Marketing to gain tips from experts from various fields, on Feb 3, 8pm.
Learn How to Be Your Own Boss with the Gear Up Webinar!
Wannabe businesspeople and those who are already their own boss alike, can benefit from tips given in the Gear Up: From Worker to Boss Via the SME Life webinar on Dec 15.
Five Kollywood Actors Who Played Both Hero & Villain In The Same Movie!
These actors went beyond and showcased their versatility by playing a charming hero and a fearsome villain in the same movie...
Nayanthara & Vignesh Shivan's Digital Wedding Invitation Goes Viral; Check It Out Here!
Check out the couple's digital wedding invitation that's going viral on social media now...
Five Kollywood Celebrities Who Got Hitched During the Lockdown!
Here are five celebrities who tied the knot during the lockdown and went viral on social media!
Why These Villagers Can't Forgive Lord Hanuman?
There's a group of villagers in the Uttarakhand Himalayas who refuse to place Lord Hanuman's idol in their temples.
The Science Behind Vaastu Shastra and Why It's Important
What is Vaastu Shastra about and how is it applied in the real world?
Khushbu's Eldest Daughter to Become an Actress, But...
Actress Khushbu and director Sundar C's eldest daughter Avanthika plan to pursue an acting career, but her parents won't be launching her!
Join "Baba's & U Enggal Insta Chef" Contest & Stand A Chance To Win Up To RM10,000 Grand Prize!
Participate in the "Baba's & U Enggal Insta Chef" monthly contest by uploading your cooking video on social media and be in the running to win RM1,000 monthly cash prize and RM10,000 grand prize!
Five Actresses Who've Shared Their Struggles with Mental Health!
Check out these five Kollywood actresses who were bold enough to break through celebrity boundaries and open up about their mental health!
Rap Porkalam is Back; Bigger, Better, Bolder!
The second season of local Tamil rap competition Rap Porkalam is back - bigger, better, bolder! Catch the premiere on June 4, 9pm on Astro Vinmeen (CH202).
Isaignani Ilayaraja Composes Title Track for Stranger Things Season 4!
Isaignani Ilayaraja scores the theme music of Stranger Things S4, in partnership with Netflix India!