A 26-year-old private sector worker found himself in huge debt after buying a Honda Civic costing over RM100,000 on a salary of just RM4,000.
According to Harian Metro, Mohamad, 26, said that he had bought the car to impress his friends.
“I thought buying a Honda Civic would impress my friends, but the opposite happened.
I realised after the purchase that I couldn’t handle the monthly debt,“ he said.
His monthly salary at RM4,000, isn’t enough to cover his other bills along with the car loan payments.
“My salary of RM4,000 isn’t enough to cover all my expenses in Kuala Lumpur, including rent, parking fees, personal insurance, tolls, and food.
“Plus, I have to pay for car insurance, road tax, and costly car maintenance. My salary just isn’t enough,“ he said.
The situation worsened when he started using credit cards to cover existing monthly debts.
“Sometimes, I can’t pay my debts, so I use my credit card to cover my monthly expenses. “This wrong decision forced me to restructure my debts,“ he said.
Another private sector worker had to restructure his debt last year after taking a personal loan for his wedding.
Azizul, 30, had no choice but to take a RM35,000 personal loan to cover his wedding expenses.
“I was getting married within a year and had no savings. My monthly salary is about RM2,850.
“How could I cover monthly expenses like rent, car payments, phone bills, and food?” he asked.
Azizul, from Alor Setar, Kedah, took a personal loan despite knowing it was a bad decision.
“I should have saved gradually. Savings would have been enough for the expenses and for emergencies,“ he reflected.
This experience has made him more cautious with his finances.
“I hope this doesn’t happen to me again in the future,“ he added.
