Look for the signs.
You are over-indebted when it becomes too great of a burden for you to bear.
Here are four (4) main factors that can lead to over-indebtedness:
Greed & Lack of Patience
It takes a lot of patience to build wealth and some individuals may get enticed by get-rich-quick schemes, only to lose their hard-earned money. It would be even worse for those who had taken loans to finance such scams. They are only getting themselves deeper into debt.
Lifestyle
Buying things you do not need just to impress others can prove to be a costly mistake. Always live within your means.
Circumstances
Although all the necessary precautions have been adhered to, some things are beyond your control. They become more critical if you do not have enough savings.
Social Trends
In recent years, the impact of social media and influencers can be seen changing the consumer habits of Malaysians. This may adversely affect an individual’s long-term financial habits.
Watch out for these signs that may lead to potential financial difficulties:
If you start experiencing any of the above, get advice immediately. Please do not wait until the problem gets bigger. The earlier you seek assistance, the faster you can get out of the situation.
Credit Cards
- Paying only the minimum balance each month
- Increasing the outstanding balance every month
- Exceeding your credit limit
- Taking frequent cash advances
- Missing bill payments and paying bills late
- Having your credit card cancelled by the card issuer
Loans
- Using the overdraft or automatic loan features in current account frequently
- Receiving notices from banks or lenders for nonpayment of debts
- Being denied credit because of a negative credit report
- Borrowing money from family or friends to pay debts
- Getting calls and reminders from debt collectors regularly
Savings
- Using up savings at an alarming rate
- Having little or no savings to cover unexpected expenses or emergencies
Expenses
- Depending on part-time jobs, overtime, commissions or bonuses to pay for your living expenses
- Living from paycheck to paycheck
- Arguing with spouse or family member regularly about money
- Not knowing how much is owed until the bills arrive.
Watch out for these signs that may lead to potential financial difficulties :
- Paying only the minimum balance each month
- Increasing the outstanding balance every month
- Exceeding your credit limit
- Taking frequent cash advances
- Missing bill payments and paying bills late
- Having your credit card cancelled by the card issuer
- Using the overdraft or automatic loan features in current account frequently
- Receiving notices from banks or lenders for non-payment of debts
- Being denied credit because of a negative credit report
- Borrowing money from family or friends to pay debts
- Getting calls and reminders from debt collectors regularly
- Using up savings at an alarming rate
- Having little or no savings to cover unexpected expenses or emergencies
- Depending on part-time jobs, overtime, commissions or bonuses to pay for your living expenses
- Living from paycheque-to-paycheque
- Arguing with spouse or family members regularly about Money
- Not knowing how much money owed until the bills arrive.
Any of the above is a trigger for you to seek help immediately. Please do not wait until the problem gets unmanageable. The earlier you seek help, the faster you gain control of the situation.