This sound advice comes from the Congress of Unions of Employees in the Civil Service (Cuepacs) president Azih Muda after a report that 1,093 civil servants were declared bankrupt last year.
Minister in the Prime Minister’s Department Azalina Othman Said told the Dewan Rakyat on Wednesday that 3,276 civil servants were declared bankrupt between 2013 and 2016.
“Many civil servants are in debt because they max out their credit cards, which may have a very high credit limit.
“They then find they are unable to service the debts. Use credit cards wisely,” he told FMT.
A financial adviser also warns Malaysians against taking out loans, for personal use or vehicles, if they cannot afford to service them.
MyFP Services Sdn Bhd founder Robert Foo said people should not be overconfident about their ability to repay their debts, especially during such economically challenged times.
“When taking up loans, the people should be realistic. Be responsible enough to pay what you owe.”
As for civil servants, Foo said some might not know how to manage their money.
“They lack exposure to wealth management and fail to foresee the possibility of going bankrupt if they cannot repay their loans.”