From The Credit Counselling and Debt Management Agency, or commonly known as Agensi Kaunseling dan Pengurusan Kredit (AKPK) showing that in the past 6 years, a total of 69,875 people were deep in debt and forced to participate in debt management plans. Among those topped the list are people from Selangor and Kuala Lumpur.
As of 31st December 2011, the agency’s data shows that from 93,090 people who receiving financial counselling, a total of 38,241 people are being approved to take part in debt management plan from these two states, which is much higher than Johor(8,318) and Penang(7,073).
People who participate in debt management plan from 2006-2011
Among the 69,875 people who take part in debt management plans, a total of 77.06% of the people are facing with housing loan, car loan and credit card debt issues. Credit card debt alone accounted for 8.57% of the total debts.
The Credit Counselling and Debt Management Agency regulations stated debt management plan are subject to several conditions, including the inability to manage their debt, getting loans from the Bank Negara(National Bank) authorised financial institutions, loans of not more than RM2 million, living expenses, possess with income balance, not facing any legal action and not yet bankrupt.
Apart from those who tend not to seek for help, the data indicate in the past six years, a total of 172,172 people been participate in the financial aiding services. Which mean an average of 28,000 people been seeking for help each year, or average of 1,000 people per month are participate in debt management plans.
3 Briefing Held Everyday
The statistic showing that the main reasons that led to 69,875 people in deep debt are due to the high medical expenses, poor financial planning, ignorant and over-spending.
People that participate in debt management plan in different states
In addition, unexpected events also one of the reasons that led to people financial difficulty, these including health problems, unemployment, business failure or the death of the family member who happened to be the main source of income for the family.
The head quarter of Credit Counselling and Debt Management Agency is located in Kuala Lumpur and there are 3 regular daily briefings held in the building, almost every briefing also receive a good response.
Reasons that People are unable to pay back their debts are:
High medical expenses 25%
Improper financial planning 24%
Business failure 15%
Credit card overdraft 14%
Lay off or retrenchment 10%
Investment failure 2%
Dead or lost of family main source of income 2%