I See Debt People

by RinggitPlus Team

Debt Management

Using your sixth sense to manage your credit card bills

Sea of debt

Credit Counselling and Debt Management Agency, better known as AKPK, has been very busy these days. Since it was first set up in 2006, AKPK has assisted 81,596 Malaysians by restructuring their loans and acting as a “middle person” between the borrower and the banks.

Thanks to AKPK’s good work, 2,460 people have managed to settle RM80.9 million bank debts via its credit management programme.

An RM80 million debt is not a small number, it is almost triple the number of current Malaysia population. If we were to divide the debts to all 2,460 now-debt-free people, that would be more than RM32, 000 debt for each person!

How did these people manage to accumulate such a high amount of debt? Looking through the success stories published on AKPK website, it’s the same story repeated over and over again; high dependency on credit cards and unpaid loans (home or personal loans, and hire purchase).

One of the most common mistakes people make when using a Credit Card is to treat it like free money. What starts off with small purchases mounts up to huge debt; and in the end you only manage to pay the minimum amount.

When you’re considering a Credit Card application ask yourself, did you read the fine print carefully? Do you know how much you’re being charged for paying only the minimum amount? These are the things you should have done before you sign the form.

Some people even make it a habit to apply for loans for just about everything. Applying for personal loan to get married – is that really necessary? Buying an expensive car – is it more economical in the long run than a much cheaper option? Or are you buying it just to show off?

Managing your finances is no easy task, but it is also not impossible. You should always weigh your options carefully – your choices now will affect your future, you wouldn’t want to live with regrets (and debts) for the rest of your life.

Image: GlobalGood Group