Worrisome NPL Amongst Youths Calls for Financial Literacy and Financial Awareness to Start at Home

In the midst of the pressing issues that demand our collective attention, a disturbing trend has formed within our younger communities these days, calling for a serious evaluation in terms of addressing our societal well-being as a whole. I write this blog with a sense of responsibility as an individual who had previously ventured into managing loan applications and intermediating with credit companies to raise awareness of the currently increasing rate of Nonperforming Loan (NPL) amongst youths between the age range of 18 to 30-year-old, leading to a dire outcome of financial instability. It's quite disheartening to say that despite the fact that these youthful spirits represented by the said age ranges shall now be on the moving platform towards successful careers and amassing wealth and knowledge to achieve their dreams, the direction to achieve this end has somehow been jeopardized by the influence of extreme consumerism and alluring instant gratification. It is true that the desire to acquire something of a dream is present in almost every individual as that urge serves as the driving factor for us to continue to live up to it. However, simply dwelling in risky debt cycles is not a favourable way to achieve something that we want.

To exemplify the situation mentioned above, we had previously gone through many stories of unpaid debts to obtain rather trivial desires or products especially gadgets like smartphones and gaming consoles. There is nothing wrong with acquiring these pieces of tech through instalment plans or loans, but it is wise if we can align it to our needs and financial strength.

This situation is worsened by some individuals and organizations out there who act as wolves in sheep’s clothing, proposing their helping hands in negotiating the terms with credit companies under the name of ‘easy instalments’ as their point of sale. These organizations and individuals are even involved with extensive alterations and fabrications of the required documentation needed for loan applications so that these applications made by the said age groups will reach the point of approval, leading them to gain profit in the form of commissions.

The consequences of this trend are very concerning and imposing detrimental impacts on our society. Financial difficulties can hinder education, damage mental well-being, and strain family relationships. The notion wherein there are individuals and some businesses out there playing their part in this situation and profiteering from it shall be a distressing call for the relevant authorities to put these organizations under scrutiny. Ignoring this growing issue would be akin to ignoring signs of an approaching storm.

To conclude, the media and other socialization agents such as family and educational institutions should step up in addressing this issue that has rendered many of our youths helpless in the grasp of surmounted debts. Embedding syllabuses of financial education into the curricula, creating awareness in distinguishing between needs and wants, and encouraging a culture of saving should be practised throughout the entire society despite of their age groups, that could equip them with lifelong skills to protect against unwanted debt