MALAYSIA: A deeply personal Reddit post has resonated with many Malaysians, shedding light on the struggle of climbing out of a debt-ridden family. Originally shared on the r/Malaysia subreddit, the post details how one individual works to escape financial burdens inherited from their parents. This story highlights the emotional and financial toll of generational debt and explores real-life strategies to overcome it.
A family’s financial struggle
According to r/Malaysia user, their father gambled away over RM1 million, leaving the family in deep financial distress. Despite being legally debt-free and co-owning an RM500,000 house with the user’s mother, the father still owes approximately RM500,000 to relatives and friends.
The post revealed that the user was emotionally manipulated into securing an RM300,000 loan from an uncle, which the father convinced him to take during his university years. Now, at 65, the father runs a small-scale renovation business with little chance of repaying the debts. Meanwhile, the mother, a housewife, has no personal savings and remains financially dependent.
Currently, the user—a 29-year-old professional earning RM9,000 per month—has managed to save RM45,000, equating to a 15% savings rate. However, he is now firm in refusing to financially support his father to avoid enabling further gambling habits.
This struggle is not uncommon in Malaysia, where financial literacy remains a key issue, as highlighted in a 2023 report by the Credit Counselling and Debt Management Agency
Strategies for overcoming generational debt
Breaking free from a cycle of debt requires deliberate action and structured financial management.
1. Assess and organise debts – List all debts to fully understand their financial obligations. Prioritising repayments, focusing on high-interest debts first to minimise long-term costs.
2. Implement effective repayment methods – Prioritising loans with the highest interest rates to reduce overall costs, paying off smaller debts first to build psychological momentum, and using small, frequent payments from daily savings or extra income to gradually reduce debt.
3. Enhance financial literacy – Attending financial literacy programmes offered by institutions like BNM and AKPK or engaging in open discussions to break financial taboos and find solutions.
Expert insights on debt management
Financial analysts have weighed in on the topic, stressing the importance of early intervention in debt repayment. In a 2023 interview, NST Business reported that more than 50% of young Malaysians struggle with credit card debt. Many are unaware of government support programmes like Bantuan Sara Hidup (BSH), which can provide temporary relief to struggling families.
Overcoming generational debt requires financial discipline, strategic planning, and setting clear personal boundaries. As the original Reddit post illustrates, escaping a toxic financial cycle is not just about repaying debt but about creating a secure future. By implementing financial literacy, prioritising debt repayment, and seeking expert guidance, more Malaysians can take control of their financial destinies.