The Young and the Pennliess can't apply for a Credit Card?
Students are graduating from university with huge levels of debt. While it’s disheartening to see young Malaysians carry financial burdens we can’t help but wonder what drove them to spend more than they could afford. Peer pressure? Lifestyle changes? Pure negligence - these are among the reasons associated with this problem. Sensible management of financial tools, like credit cards and debit cards, is the answer.
However, if we look closely, it all boils down to irresponsible lending and inexperience. For many of these Malaysian graduates, the first job they held after leaving university was their first job ever. To have to manage a relatively huge amount of money (compared to their monthly allowances while studying) is something new. Without proper planning and budgeting, it’s easy to get off-track. Credit cards are not free money and they shouldn't be treated as such. A credit card has it's own burden of responsibility.
How to Manage a Credit Card
Above all the basic rule is fairly simple: Don't spend more than you earn.
Before you even think about applying for any personal loans or credit cards, you should keep track of all your debts and expenses. By doing so, it’s easier for you to manage your cash flow as you can track your spending.
If your net income is already just enough for you to get by, don’t get a personal loan or a credit card - use a debit card for convenience instead. What you need to do is to cut back on your spending on non-essential items, or try to look for ways to earn more.
If you find that your debt is piling up and getting out of control, help is near. Young Malaysians can always get in touch with AKPK (Credit Counselling and Debt Management Agency). They provide free financial counselling and debt management programs.