—Increasing trends in using debts as a mechanism to fill the gap between income and expenditures among Malaysian households motivates this study. This study provides a survey evidence on the indebtedness of Malaysian household, particularly in the types of loans which Malaysian households frequently involved in, whether the debts become a financial burden to the households and whether Malaysian households have any alternative source of income as a financial backup for their main income. The survey shows that most Malaysian households having debts in hire purchase loan, debt service ratio of less than 60% and most of them have no alternative source of income. The survey was done on households in three northern states of Malaysia.
—Debt, debt service ratio, household, Malaysia.
The authors are with Universiti Utara Malaysia, Sintok, Kedah, Malaysia (e-mail: firstname.lastname@example.org, email@example.com, firstname.lastname@example.org).
Cite: Nora Azureen Abdul Rahman, Zunarni Kosim, and Siew Goh Yeok, "Household Indebtedness in Malaysia: A Survey Evidence," International Journal of Trade, Economics and Finance vol.7, no.4, pp. 102-104, 2016.