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AKPK resolves 41,000 debt cases worth RM2bil
Posted on Apr 28, 2022
THE Credit Counselling and Debt Management Agency (AKPK) has managed to resolve 41,000 debt cases from its Debt Management Programme (DMP) with a total outstanding settlement of RM2 billion.
AKPK spokesperson told The Malaysian Reserve (TMR) that since its inception in 2006 up to March 31, 2022, more than 1.2 million individuals have received AKPK’s advisory services, and more than 370,000 of them have applied to enrol into its DMP.
“Through a survey conducted on AKPK programme participants, factors that have caused financial or debt problems and led them to their participation in this programme include high cost of living (36.8%), poor financial planning (36%), failure or slowdown in business activities (11.7%), loss of job, retrenchment or loss of breadwinner (8.9%), high medical expenses (5.4%) and other reasons (1.2%),” AKPK told TMR.
With less than a week for Aidilfitri celebration, Malaysians are reminded to be wary of debt-traps due to overspending.
“Big festival spending has been a lifestyle for some. We need to be very careful not to get carried away. That is why proper and meticulous expenses planning is a must. People are strongly encouraged not to take up festival loans,” the spokesperson said.
“Instead, have an emergency buffer fund for festivals. Many times, we fail to cater for emergencies like car breakdown, unexpected house repair or even unexpected guests coming over. These lead to extra expenses, and if we do not have money at hand, we will resort to loans.
“Festivals are something we all look forward to as they bring a lot of happiness. However, celebrating these festivals could lead to financial stress if not managed properly,” it added.
As this is the first time in two years that Malaysians are able to celebrate Aidilfitri with less restrictions, more shopping activities have been reported. Flight tickets and hotel bookings have increased in light of the festive season.
“We urge Malaysians to be frugal during festive periods so that their monthly expenses are not jeopardised following the festivities. We advise Malaysians to prepare a budget and to live within their means during the festive celebration,” the debt agency said.
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