AKPK targets 10 pct of clients to get out of debt by year-end

The Credit Counselling and Debt Management Agency (AKPK) is targeting nearly 10 percent of 148,830 people

participating in its Credit Management Programme to settle their debts in full by year-end.

CEO Azaddin Ngah Tasir said as at March 31 this year, 9,937 of AKPK's clients got out of the programme after paying off debts worth RM407.9 million.

"Those participating in the programme are saddled with five types of debts with an average amount of RM40,000, which may take up to eight years to settle," he told a press conference in conjunction with AKPK's 10th anniversary celebration here today.

Azaddin said credit card debts made up 70 percent of the cases, while the rest were personal, car and housing loans.

He said poor financial management and living beyond means were to blame for the debts.

"About 80 percent of individuals who underwent the Credit Management Programme were able to repay their debts after they were restructured by AKPK, while between 15 and 20 percent failed to do so.

"The failures were due to unforeseen circumstances such as job loss and lack of discipline and resolve to get out of debts," he said.

AKPK also stresses on the need to educate more people, especially generation Y, to become financial literate through its financial education programme.

So far, AKPK has reached out to 1.1 million individuals through the programme and expects to educate up to five million participants within the next five years.

So far, 30 percent of 418,981 people, who sought advisory services and counselling on financial management, underwent the Credit Management Programme.

Azaddin brushed aside the perception that individuals who sought AKPK's services were heavily in debt, instead more people visited the agency for financial planning advice.