In a recent interview with TVS NEWS, Abel Benjamin Lim, the Head of Economics and Public Policy at Bait Al Amanah shared insights on coping with debt stress, a long-term problem among salaried workers in Malaysia.
According to a 2021 survey by Bank Negara Malaysia, 30% of Malaysians feel that their debts are burdensome, and this is partly due to factors such as easy access to credit, rising living costs, and insufficient financial literacy.
To help individuals manage their debt more effectively, our expert emphasizes the importance of proper financial planning.
‘Create a budget and identify areas where expenses can be cut’
By doing this, individuals can get a better understanding of where their money is being spent and find ways to live more frugally, freeing up cash to pay off debt.
In addition to budgeting, our expert also advises individuals to avoid common mistakes when paying off debt.
‘It’s important to prioritize high-interest debt, such as credit card balances, as there can quickly spiral out of control if left unpaid.’
Consolidating or refinancing debt to a lower interest rate can also be a smart move, as it can help individuals save money and improve their overall financial sustainability.
‘At the end of the day, the goal is to avoid taking on financial obligations that could lead to a future financial burden’
With the right strategies and financial planning in place, individuals can take control of their finances and work towards more sustainable future. So if you are feeling overwhelmed by debt, take a deep breath and start by creating a budget and seeking out resources that can help you manage finances more effectively.
Watch the full interview session between Abel Benjamin Lim and TVS NEWS here: