Highest number of bankrupts are car loan defaulters

By MAZWIN NIK ANIS (The Star Online)

KUALA LUMPUR:

Car loan defaulters top the list of people declared bankrupts.

Minister in the Prime Minister's Department Datuk Seri Mohamed Nazri Aziz told Parliament there were 29,338 bankrupts under this category from 2005 to April 2012.

Others who were made bankrupts involved those with personal loans (15,299), housing loans (14,327), business loans (14,327) and failure to settle corporate loans (6,127).

Nazri said 6,163 individuals were declared bankrupt for standing as guarantors to loan defaulters.

The Insolvency Department registered other causes for bankruptcy as failure to settle credit card bills (5,735 people), income tax (1,112), study loans (196) and others (24,975).

Between 2005 and April this year, the department registered 116,379 people who have been declared bankrupt.

"Of the figure, those aged between 35 and 44 makes up the most number of bankrupts with 37,493 individuals," he said in response to a question by William Leong Jee Kean (PKR-Selayang).


[Why people tend to purchase cars which they cannot afford to pay monthly installment? I wonder a lot on this most of the time as I'm not car lover and I prefer a vehicle with 4 wheels with basic road safety is sufficient. Always put 30% of your monthly salary into saving before spending additional expenses apart of your daily expenses as older people tend to do]