Bankruptcy is no longer just a “business failure” story.
In Malaysia alone, nearly 6,000 people were declared bankrupt in 2024, and shockingly, more than 800 of them are young adults aged 34 and below.
So what’s really going wrong?
Here are the 3 biggest hidden reasons many people don’t realise until it’s too late.
💣 1. Personal Loans – The Silent Trap
Almost 46% of bankruptcy cases come from personal loans alone.
Why is this so dangerous?
Because personal loans are:
- Easy to approve
- Can go up to 10x your salary
- Often used for non-productive spending like weddings, vacations, or lifestyle upgrades
The problem starts when:
👉 Money finishes fast
👉 But the debt lasts for years
Every month, salary gets thinner… until financial pressure becomes overwhelming.
🚗 2. Car Loans That Don’t Match Income
Many people want a “status car” but forget their actual financial level.
Reality check:
- Fancy car, but income doesn’t match
- Monthly instalment can eat a big chunk of salary
- On top of that: insurance, fuel, toll, maintenance
And here’s the hard truth:
A car is not an asset.
It can lose up to 50% of its value in just 5 years.
So many people end up working just to pay for the car, instead of the car working for them.
🤝 3. Becoming a Loan Guarantor (Silent Risk)
This is one of the most underestimated risks.
When you become someone’s guarantor:
- You don’t get the money
- But you take full responsibility if they default
And in 2024, hundreds of bankruptcy cases happened because of guarantor commitments alone.
Many didn’t even take the loan — but still ended up bankrupt.
🧠 So How Do You Protect Yourself?
The first step is simple but powerful:
💰 Build an Emergency Fund
Bank Negara data shows:
👉 61% of Malaysians cannot even raise RM1,000 in emergencies
This is why many people end up taking loans when life gets difficult.
An emergency fund helps you:
- Avoid debt traps
- Stay financially stable
- Handle unexpected situations confidently
📈 Start Growing Your Savings the Smart Way
If you’re serious about building better financial habits, you can start investing and saving through myASNB Ria, a new robo-advisor platform designed to make investing easier and more accessible.
You can begin your journey here:
👉 iOS: Download myASNB Ria on iOS
👉 Android: Download myASNB Ria on Android
👉 Huawei: Download myASNB Ria on Huawei
🎁 Use referral code SG5JFP during registration and you may receive RM20 reward as part of the promotion.
⚠️ Final Reminder
This content is for general information only and not financial advice. Always do your own research before making any investment or financial decision.
💬 What do you think is the biggest reason people go bankrupt today?
