YOUNGSTERS, especially fresh graduates entering the workforce, should be barred from getting credit cards as these are among reasons why many get entangled in serious financial problems.
Director-General of the Malaysian Department of Insolvency (MDI), Datuk M Bakri Abd Majid, stated that there is no need to have credit cards at a young age, especially if it is only intended to support a lavish lifestyle.
He said that young people, especially those who have just completed their higher education, should not be allowed to have credit cards because they not only lack strong financial resources but also have problems with proper financial management.
"There are those earning RM2,000 a month who already own a credit card. What is the necessity for fresh graduates to have one?" he said on the Borak Harini podcast hosted by Berita Harian.
"Credit cards should be used by those with stable jobs, for instance, if they need to travel abroad for work. Once they return, they should settle the payment immediately. A credit card is meant for convenience, not for flaunting a luxurious lifestyle.
"Nowadays, many people rely on credit cards and personal loans to sustain their lifestyle. For example, they want to travel, dress up for OOTD (outfit of the day).
"They want to go to Korea… to Japan. Traveling should only be done when we have extra money, not by borrowing or using someone else's money."
Picture from Berita Harian
Bakri said that the lifestyle of today's youth, who like to 'show off,' is also a cause for many of them getting caught up in financial problems, eventually being declared bankrupt.
"We do not have specific studies on the financial management of young people, but from our observations, we see that lifestyle is a contributing factor.
“For example, they are only able to buy vehicles worth RM40,000, but why do they buy vehicles worth RM80,000?
"Why don't they cut their coat according to their cloth? If they can only afford a 'P' brand car, why do they insist on buying an 'H' brand car? Is it just to appear wealthy?"
He also urged the government, particularly higher learning institutions, to introduce financial literacy programmes to help new workforce entrants better manage their finances. – March 8, 2025
