Adaptation of Behavior al Insights to Reduce Individual Indebtedness: A Case Study from Malaysian Context

Abstract

Abstract: This study examines the issue of bankruptcy in Malaysia with a focus on attitudes, debt-related behavior s, and subjective norms among individuals who have been declared bankrupt. Employing a qualitative interview-based approach, the study involved fifteen (15) informants, including bankrupt individuals and officers from relevant agencies. Data were collected through structured online interviews and analysed using Nvivo 10 software to identify categories, themes, and patterns of financial behavior . The findings indicate that rising living costs, income instability, and a lack of financial behavior al control are the main factors contributing to bankruptcy. The study also highlights the importance of subjective norms and individuals’ perceptions of debt in shaping their financial decision-making. These findings contribute to a deeper understanding of the phenomenon of bankruptcy in Malaysia and provide recommendations for action plans and intervention strategies to assist individuals in managing debt more effectively.