Adults between 30 and 40 years of age comprise the major group enrolled into the programme
by NUR HANANI AZMAN / pic by HUSSEIN SHAHARUDDIN
A TOTAL of 15,024 new individuals had signed up to the Credit Counselling and Debt Management Agency’s (AKPK) Debt Management Programme (DMP) as at the end of June.
AKPK GM (operations) Nor Fazleen Zakaria said 52,566 individuals had also attended AKPK’s counselling services during the first half this year.
“The main reason for enrolment is due to default or debt problems is poor financial planning (36.7%) followed by a high cost of living (34.7%).
“Other reasons include failure or slowdown in business (12.3%), lost job, retrenched and loss of breadwinner (8.8%), and high medical expenses (6%),” she told The Malaysian Reserve.
According to AKPK’s data, adults between 30 and 40 years of age are the major group who enrol into DMP followed by individuals between 40and 50-year-old.
Since its inception in 2006 until June this year, 1,083,970 individuals have attended AKPK’s counselling services and from the total, 322,495 participants have enrolled into AKPK’s DMP.
Nor Fazleen said 28,224 debt cases had exited from the DMP, with a total outstanding of RM1.24 billion.
Nor Fazleen said AKPK continuously encourages borrowers to prepare ahead while there is still time for those who will start their repayment in October onwards.
She said AKPK’s Financial Counselling will assist consumers to work out budgets that will help them manage their money and living expenses to improve their cashflow and net worth, while helping them meet their loan and credit obligations to avoid defaults on loans and foreclosures.
“AKPK’s DMP assists borrowers in rescheduling or restructuring their housing loans, hire purchase loans, personal loans and outstanding credit or charge card balances that are due to financial service providers under the purview of Bank Negara Malaysia.
“By raising awareness and educating the public on how to manage their finances effectively, as well as providing counselling and specially tailored DMP, AKPK hopes to help curb financial-related issues faced by many Malaysian households.
“Increasing consumers’ financial literacy enhances their appreciation for the need to save which serves as the basis for wealth accumulation, preparedness for financial uncertainties and comfortable retirement,” Nor Fazleen added.
AKPK provides an avenue for individual borrowers as well as potential borrowers to enhance financial discipline via Financial Education, Financial Counselling and DMP for free.