Many of us often rely on credit cards because, let’s face it, it is just so convenient to swipe! But higher credit card usage would ultimately lead to bigger debts, especially if we fall into temptation and spend way more than our earning capacity.

However, despite some reckless spending attitudes, the number of Malaysian youth declared bankrupt due to credit card debts has actually decreased this year.

If you can't control yourself, put your credit cards away.
According to a New Straits Times report, the Finance Ministry said only nine people below 30 years old were declared bankrupt between January to September, which is relatively lower compared to the 22 people from last year.

“From 2014 to 2016, the average statistic of younger generation declared bankrupt stands at only 1.1 per cent,” Deputy Finance Minister Datuk Othman Aziz told New Straits Times.

Although credit card usage is one of the leading causes of bankruptcy, most of the cases in Malaysia occur among those above the age of 30.

Hence, to control the number of debts, Bank Negara has taken several measures to make sure that only those who are eligible and capable were allowed to for a credit card.

The measures include increasing the minimum annual salary of credit card users from RM18,000 to RM24,000 since March 2011. As for those with an annual salary of RM36,000 or less, they can own only up to two credit cards with a maximum limit of not more than double their monthly income.

So, let's be a bit more responsible in our spending because life is not getting any easier here!