Fact 1: For the past four years, more than 6,000 credit card holders have been declared bankrupt.
Fact 2: These 6,000 plus bankrupts incurred RM 2.5 bil of bad debts.
Fact 3: Currently the current card debt is RM 20.8 bil.
Fact 4: Out of these, RM 500 mil has been classified as non-performing loans (unpaid debt exceeding 3 months)
Fact 5: Unpaid loan under 3 months amounted to RM 2 bil.
Fact 6: 30% card holders settled in full payment, 60% paid up in full on the following month and almost half pay at least the minimum payment.
Fact 7: A total of 2,764,085 (49.7%) new card applications were approved last year from a total of 5,566,871 applications.
These statistics are quite concerning with the increasing number of debts incurred, new credit card holders (almost 3 million new holders with higher potential of overspending the plastic money) and bankruptcy.
Banks and government should tighten up the rules on new card applications like in UK - 2.7 million new card applications is indeed a huge number for potential credit card debts to occur.
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Source: The Star, 21 May 2008 - More than 6000 card holders declared bankrupt