Debt Management Challenges Among Young Employees: A Qualitative Exploration

Debt management is crucial to achieving financial well-being among young employees, particularly as they enter the workforce. With rising living costs, student loans, and easy access to credit, young employees need to handle debt effectively. Thus, this study examines how young employees understand and manage debt by analysing the learning process that shapes financial literacy and behavioural indicators influencing personal financial management capabilities. A qualitative research design was employed, utilising purposive sampling, which involved semi-structured interviews with six young employees from one of the economically underdeveloped states in Malaysia. The data were analysed through a thematic synthesis approach, supported by NVivo. Consequently, two major themes emerged, namely learning in financial literacy through both formal and informal channels, and financial literacy indicators that influence debt management practices, including budgeting behaviour, credit awareness, self-control and use of digital financial tools. Accordingly, the findings emphasise the critical role of digital and experiential learning in shaping financial capability among young employees in less economically developed regions. Also, this study contributes contextual insights into the micro-processes of financial literacy among Malaysian young employees and offers policy recommendations for enhancing financial education and digital interventions.