Feeling overwhelmed by debt can take a real toll on your peace of mind. You might think bankruptcy is the only solution, but in Malaysia, there are free resources to help you regain control. 

One of the most trusted options is AKPK, a government-backed agency that works with Malaysians to make repayment manageable before things spiral out of control.

How AKPK’s Debt Management Programme Works

The most popular service is the Debt Management Programme (DMP). It helps Malaysians combine multiple debts into a single monthly payment that is realistic based on income and expenses.

AKPK counsellors review your income, expenses, and all outstanding debts. The agency then contacts banks, credit card companies, and other financial institutions on your behalf. Through their negotiations, you might receive lower monthly payments, waived late fees, or reduced interest rates.

Although the total debt does not change, the programme helps make repayment realistic and stress-free.

The programme works for credit cards, personal loans, hire purchase, and other consumer debts from licensed institutions. It does not cover housing loans, business debts, unlicensed moneylenders, or personal loans from friends and family.

Once you join the programme, you pay a set amount each month to cover all your debts. AKPK then distributes this payment to your creditors. Repayment plans typically last between three and eight years, depending on your total debt and income.

How To Apply For AKPK Help

You can visit an AKPK office nationwide or apply online for a free initial consultation with no obligation to join the DMP afterward.

To qualify, you need a regular income, whether employed or self-employed, and your debts must be with licensed financial institutions. There is no minimum or maximum debt threshold, as the agency has helped people with debts ranging from a few thousand ringgit to hundreds of thousands.

Bring documentation of your income like payslips, EPF statements, and bank statements. You will also need a list of debts such as credit card statements and loan agreements, along with details of your monthly expenses. Counsellors review everything and recommend whether the DMP or another solution is best for you.

The approval process usually takes a few weeks while AKPK negotiates with your creditors. In the meantime, continue paying at least the minimum on your accounts to avoid defaults.

Will AKPK Affect Your Credit Score?

Enrolling in the DMP will be reflected on your CCRIS report, so you may be restricted from taking on new loans or credit cards while in the programme. 

Although this shows creditors that you are actively managing your debts, it does not automatically improve your credit score. Completing the programme successfully can help demonstrate financial responsibility to future lenders, but it may take time for your credit profile to recover fully.

Other Services From AKPK

AKPK is not just for people in crisis. They also provide financial education workshops covering budgeting, saving, responsible credit use, and retirement planning. Pre-retirement advisory services help older Malaysians plan life after work, while general credit counselling is available even if you do not enrol in the DMP.

When Should You Contact AKPK?

It is completely normal to feel anxious or embarrassed about asking for help with debt. Many people put it off because they are afraid of being judged, but reaching out is a sign of taking control, not a failure. AKPK’s counsellors are there to listen, guide, and support you every step of the way.

If you’re already receiving calls from debt collectors, learn how to deal with debt collectors while you arrange help through AKPK. The sooner you reach out, the more options you’ll have. What feels overwhelming now can become a manageable repayment plan with the right support. You can contact AKPK through their website or call the helpline at 03-2616 7766.

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