"Who doesn't dream of having their own home, right? Especially when you see some individuals achieving the feat of buying a home at a younger age, it surely ignites a sense of admiration and a desire to achieve the same with even more enthusiasm.
However, buying a home is not as easy as one might think. If you make a wrong move, you are the one who will suffer in the end. For some people, having 10% of the upfront money as required by the bank might be sufficient to buy a house.
But in reality, there are many things to consider before making the decision to buy a home. This is crucial because, if you make a misstep, you might end up bankrupt!
This was the story for Sakinah, aged 32, who was on the verge of bankruptcy due to hasty decisions made without proper planning. Worse yet, she once contemplated ending her own life due to the overwhelming financial problems she faced.
Sakinah purchased her first home at the young age of 21, an affordable apartment. At that time, she admitted that she didn't think long-term and made a hasty decision.
After completing her Malaysian Certificate of Education (SPM), Sakinah didn't pursue further education but started working in sales and marketing. Two years into her job, she got a promotion, and by then, she had achieved her sales targets, earning a four to five-digit salary monthly.
At the same time, Sakinah also managed her own business. So, when someone offered her the opportunity to buy a house, she agreed without much thought, confident that she could manage her finances well in the future. After all, at that time, Sakinah was only 21, and she had managed to save up for the house down payment.
During this period, Sakinah also bought a high-priced Honda car. For a young person in their early twenties, Sakinah's life seemed to be at its peak. With her spendthrift attitude, she used money as if there were no tomorrow, without saving for emergencies.
However, as the saying goes, what seems hot until evening can turn into rain in the middle of the day. Sakinah's contract with the company she worked for could not be renewed due to financial issues faced by the company. Initially, Sakinah remained positive because she still had her business. However, once again, she faced a challenge when her business did not perform as well as she had hoped."
Sakinah sat down, contemplating how she could manage her existing commitments. Car loans, house payments, and credit card debts were piling up. Moreover, Sakinah didn't have a high level of education, making it difficult for her to secure a job with a high salary like she used to receive.
She attempted to work with several companies in sales, but the commissions earned were not as substantial as before. However, to sustain her life, Sakinah continued working despite the impact on her income.
According to Sakinah, the dark moment began when she couldn't withdraw her salary from her bank account. A few days later, she received a letter referring her to the Insolvency Department.
She received a bankruptcy notice from the Insolvency Department amounting to RM113,000 due to failure to pay outstanding debts. Sakinah also had a poor CCRIS CTOS record due to credit card arrears amounting to RM15,700.
This happened after her contract was not renewed, leading to her inability to pay all the monthly installments. Sakinah thought that keeping silent out of fear of not being able to repay the debt would save her. However, Sakinah's assumption only made her situation worse.
How would Sakinah get out of the financial crisis she was facing? Sakinah only had two choices: either pay or declare bankruptcy! Would Sakinah allow herself to be declared bankrupt at the age of 32? Read more in part 2!
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