Bankruptcy Due To Credit Card Debts December 13, 2007
Posted by Vedis in : Credit Cards , trackback
Last month, 89 people were declared bankrupts over credit card bills. The increasing number of people becoming bankrupts due to credit card debts is “worrying”.
In 2005, 1,497 credit card holders were declared bankrupt, representing an increase of 34% over the 1,117 credit card defaulters in 2002. In 2004, the number was 1,397.
In the past, people became bankrupt because of bank loans, but today bankruptcy due to credit card debts is reaching worrying heights.
The main reason could be due to the easy availability of plastic cash with the requirement for eligibility starting at a salary of RM1,000 a month. Some, especially the young, seemed to be having a “party” with credit cards by spending excessively on clothes and accessories.
A total of 8.8 million credit cards had been issued nationwide as of January.
Most problems began once fresh graduates applied for credit cards and spent beyond their means. They sometimes hit the limit allowed on the cards, spending up to five times their monthly salary. Then they get blacklisted by financial institutions and suffer their whole life.
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