KUALA LUMPUR: The Credit Counselling and Debt Management Agency (AKPK) has helped 14,688 individuals fully settle their debts totalling RM593 million via its debt management programme (DMP) as at Sept 30, 2017.
AKPK set up the DMP to help borrowers improve their financial standing by restructuring their housing, vehicles and personal loans, including outstanding credit card balances.
AKPK chief executive officer, Azaddin Ngah Tasir, said since its inception in 2006, a total of 631,386 individuals had attended the counselling services.
“Of the total, some 198,915 individuals have enrolled in the programme,” he told reporters on the sidelines of the AKPK Collaborators Award 2017 here yesterday.
Bank Negara Malaysia assistant governor Abu Hassan Alshari Yahya presented the awards. Azaddin said 68.7% of those who had enrolled in the DMP were aged 30 to 50 and had been unable to pay their credit card debts.
He said poor financial planning was a major factor for the financial difficulty faced by the agency’s clients and this constituted 44.7% of the cases received, followed by high cost of living (19.3%), business failure or slowdown (14.8%), high medical expenses (9.3%) and others (11.9%).
“Some 14.6% of the individuals below 30 years old who joined the DMP did not have any debt problem but nevertheless wanted to get financial advice.
“This proved that among the younger generation, there is an awareness to be financially literate through AKPK’s financial education programme,” he said.