According to the Business Time, dated 31st Oct 2009, the total credit card holders reaching 11million (Primary credit card holder is 9.8million and supplementary card holder is 1.3million). In average, every people are carrying about 4 credit cards.
Obviously, the main factor induced to credit card debt creation appeared on the banker itself. People can easily apply and get the credit card even though their gross income is not fall within the minimum requirement. Government should monitor and make sure the merchant bank has follow according to the rules that the minimum requirement impose for those applicants should strictly follow instead of impose the RM50 and RM 25 service tax on cardholders.
From Year 2005 until May 2009, almost 3,637 bankruptcies were recorded and most of the bankruptcy caused by credit card debt. In average, there is 120 people bankruptcy fall in age group below 25 years old (10% of total bankruptcy). Over 50% fall in age group below 44 years old.
Hence, it is advisable to consult with their personal financial planner to avoid getting into more debt and toward the road of bankruptcy. (More sharing on how to get out-of-debt faster in my next articles.)
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