As many as 53,000 youths aged 30 and below are under debt worth nearly RM1.9 billion in total, said the Credit Counselling and Debt Management Agency (AKPK). Additionally, a big part of it is reportedly attributed to credit card debts and personal loans.

According to the agency, 47% of individuals who registered with it for debt restructuring assistance sought help because of credit card debts. This is followed by personal loans at 40%. Meanwhile, those who asked for help because of vehicle hire purchase loans and mortgages stood at 3% and 2%, respectively. The remaining 8% sought aid for the restructuring of other types of loans.

Aside from that, AKPK also revealed that individuals aged between 28 and 30 years old made up 65% of its clients as of March 2024, making them the biggest group of applicants. Their main reason for registering with AKPK was to restore their cash flow.

“Based on AKPK records, they are mainly caught in such a situation due to having additional children in their family, maintaining a particular lifestyle, housing loans, and purchase of vehicles,” the agency stated, adding that it is crucial for borrowers to learn to manage their finances holistically according to their financial situations.

“It should be reminded that the credit rating of the borrower will be affected if they fail to service their loan instalments within the specified time period,” AKPK further stressed.

For context, AKPK’s credit management programme is aimed primarily at assisting those with loan issues involving debts like housing loans, rent-to-own, credit cards, charge cards, and personal loans obtained from regulated banking institutions or credit providers. Those who have been referred to the programme will be barred temporarily from taking up new loans as they resolve their existing financial difficulties.

(Source: Malay Mail)

• TAGS:
• AKPK
• Credit Card Debts
• Credit Counselling and Debt Management Agency
• Debt
• Personal Loans