Kamarul* was dejected once again. The feeling of worthlessness did not seem to fade away. It did not make sense to Kamarul that within a span of 6 years, he had lost 6 jobs. It was hard to comprehend such fate. Kamarul could not believe that on average he was losing one job a year and wondered if others out there were stuck with his unfortunate luck. Kamarul's ill-fated luck first started with the economic crisis. He did not have a plan for emergencies and never once kept money away for security. Kamarul felt that no one really thinks about saving for a rainy day, not when there seemed to be nothing but blue skies ahead. When Kamarul thought about how the only job he really managed to secure paid RM600 on a good month, he began to wonder how he supported his family and ailing mother all these years. 

Kamarul did seek a lot of financial support from his relatives and friends and distinctively remembers how he hated pleading for money. Unfortunately, he did not have any choice. Oftentimes the help was not enough, and when he finally got tired of begging, Kamarul used credit cards as a means for more buying power. The cards gave him so much convenience. With the cards Kamarul was able to buy almost anything he wanted. They gave him security. They provided food on his plate, but most of all, he could stop asking family and friends for petty ringgit. 

The bank kept increasing his credit limit and that was good news to him. His original credit limit of RM20,000 from 6 different cards ballooned into a whopping sum of RM245,000 over the years. He was under the false impression that all he had to do was pay the minimum payments on the cards while the balance could be paid at a later date. How was Kamarul supposed to realise that the interest accumulated over time when he was too busy blowing his credit, spending on glitzy items he and his family never had. 

Kamarul was tired of being in debt and harassed by creditors. He was also tired of moving to 3 different houses in 2 short years all in attempt to avoid visits from debt collectors. Kamarul was worn out and simply wanted to be a better provider for his family. He sought harder for a well-paying career and finally secured a job with a stable income. Kamarul had a baby on the way and needed to build his life again for the sake of his unborn child. However, he had too much debt to secure a happy future. It was then that he decided to seek the help of AKPK. 

AKPK had managed to negotiate with the financers and came up with a restructured repayment plan which was affordable to him. Kamarul could not believe AKPK managed to do so much for his overbearing debts. He was amazed at how much relief the agency provided him. Getting out of debt was something Kamarul never thought was possible. He could now build his dreams without worrying about constant creditor harassments. 

The compulsion to make more money is a part of human nature and Terry* is not an exception. His financial troubles started when, without any experience in investments, he withdrew RM 100,000 from his RM 150,000 savings to launch a share market investment.

His belief was ‘if you want to make money fast, the share market is the place to be’. He worked hard in making his investment a fruitful one but his lack of knowledge did nothing to help his choice of investment. 

Unfortunately, the lack of knowledge and experience in the share market industry caused Terry to use up his start-up capital quickly, after which he sought personal loans and credit cards from financial institutions to continue funding his investment. When these financial instruments did not help his situation either, he returned to his old gambling habit with hopes that luck will be on his side. 

As time passed, his debts increased and he started receiving numerous calls from banks for payments. Because he could not afford the payment of all his loans, his mental health was affected – he was always worried when his mobile phone rang and resorted even to using a different number to avoid the calls. He started staying away from everyone he was close to because he was embarrassed of the situation he was in. It came to a point when all his colleagues knew he was paying off a big debt, causing him more grief.

When one of his colleagues came to know about Terry’s situation, he advised Terry to approach AKPK for assistance. When Terry walked in to AKPK’s office, he was a broken man. The counsellor who attended to Terry negotiated lower interest rates for all the credit cards he owned, which was lowered by half. When Terry heard of the good news, he was overjoyed that he would no longer receive calls from debt collection companies for payments.

*The names specified in these stories have been changed to protect the identities of the individuals involved. These success stories are meant to merely provide information on AKPK's services and lessons on money management.

Personal loans have, for a long time, been associated with debt consolidation, among other things. Many people seem to think that people take out loans to finance their unhealthy spending habits, which got them mired in debt in the first place! It doesn’t have to be that way, as you can put the extra liquid cash you receive to good profitable use: hobbies.

Did you know that not all hobbies are a mere waste of time, and some of them can be brought to a whole new level where you actually make a good living? First, make sure you’re ready for the commitment of paying back a personal loan. Assuming you borrow RM150,000 to start off (with a 8% interest rate per annum), your monthly repayment would be RM3,500 over a period of five years according to Loanstreet’s personal loan settlement calculator.

1) Baking / cooking

In our busy nine-to-five weekdays, some people either bake or cook to unwind, since the simple joy of whipping something delicious up is satisfaction enough. If you’re confident in your skills and you’ve gotten nothing but praise for your concoctions, why not open a small business in baking/cooking? You can start by setting up an online presence (social media channels) and then slowly build your empire up, which is exactly what Harizan Hazwani Nadia – owner of Kek Sriya by Dhia’s Homemade – found out.

With zero knowledge in baking but with a passion for cakes, she relied on the internet and social media to improve her skills as well as market her five different varieties of cakes. The result? Her RM1 per cake slice business now generates approximately RM1,500 in daily profit.

2) Make-up

Make-up has gone from mere beautifying tools to money-making machine in recent years, especially more so when you find out that the beauty industry in the US alone is worth USD445bil (roughly RM1.84tril). If you’ve always fancied yourself an artist but with eyeshadow palettes and human skin as your canvas, you could go from bedroom nobody to beauty guru just by using your personal loan to pay for make-up supplies and a cosmetology course to become certified.

Take for example, self-taught make-up artist Nabilah Zulyadaini who ventured into the world of make-up after becoming bored as a housewife. So advanced are her skills now, that she has her own business: conducting workshops as far as Brunei and Singapore, where she charges RM450 per student.

3) Photography

If you have a good eye for spotting beauty in the most unlikely of places and faces, chances are that you’d make an excellent photographer, or are already dabbling in it. A creative mind isn’t all that’s needed to excel, your determination and willingness to learn the camera settings, lighting, posing and anything related to photography is vital too.

The camera and lenses can be very costly but you could opt for cheap/secondhand stuff first then build up your arsenal slowly. However, how much you can earn from this hobby would depend on the gigs you land. For example, the most basic fee a photographer is paid to shoot a dinner event can range between RM350 to RM3,500 according to professional photographer Vignes Balasingam.

4) Musical instruments

Music is something that’s enjoyed by people around the world, and it can be divided into those who listen to music and those who create music. As it is, you love the way your fingers seem to be able to pluck melodies from thin air as you play the instrument of your choice. There is a myriad of revenue streams for you, such as working as a session musician, selling music or jingle writing.

If the thought of sharing your skills with other young impressionable minds has ever crossed your mind, here’s your chance. As a part-time piano tutor giving private lessons, you can earn more than RM100 per month, depending on the level of your skill, location, duration and the total number of classes per package. These lessons can be as flexible as you wish to match your working and leisure time.

5) Handmade items

The idea of making your things has always come naturally to you, whether it is your own clothes, handbags or soaps. If this sounds like you, you’d be glad to know that you not only can earn extra money with this hobby, but turn it into a highly profitable full-time career if you so wish!

Take the case of Alicia Shaffer, who makes knitted wares and sells them on Etsy (a hugely popular online craft marketplace), among other places. The rise in the popularity of online shopping means that purchasing products is now a mere click away; faster and easier internet access has helped connect buyers and sellers from all over the world. Shaffer’s crafty hobby earns her business her approximately USD80,000 (roughly RM331,000) a month!

To conclude

In cases whereby monthly salaries usually aren’t enough to cope with the rapidly increasing standard of living, choosing to take out a personal loan to finance something is viewed as unconventional as this would get you extra cash, all while you continue to do the things you love. Make sure you are also aware of how to pay back your personal loan without overstretching your budget.

“Choose a job you love, and you’ll never have to work a day in your life,” goes one quote, so be careful when choosing which hobby to finance!

This article is brought to you by Loanstreet.com.my (in collaboration with AKPK) Malaysia’s leading independent loan comparison website.

Deciding what type of property to buy with a million Ringgit can be a tough decision to make. In this article we will analyse three possible options. The first option will be investing the entire amount in a terrace house, the second will be buying two condominium units of similar value, and the last would be buying several apartment units of a lower value.

First, you would need to make sure that you know what the current packages in the market for mortgages are, so that you’d be in a better position to plan for your finances. To ensure that you are on the right financial track, make use of online tools to calculate the possible outcome of the monthly installment amount for a rough idea. Once you have in mind a few suitable home loans that best fits your current budget, it’s time to move on to the next step: planning which property is worth the commitment!

Entry costs for a terrace house is relatively cheaper compared to buying several apartments when you buy it with a loan since each individual is entitled to 90% financing for the first two residential properties but only 70% financing for the third property onwards.

Furthermore, the resale value for terrace houses is normally higher than that of condominiums and apartments at certain areas. However, investing in a single terrace house is undoubtedly the riskiest option. This is because if a natural disaster such as a landslide occurs, you’ll be left with a muddy mess and still have to repay your mortgage.

All condominiums in Malaysia come with some basic facilities such as a swimming pool and gymnasium, thus drawing a wider range of possible renters. If you buy two condominium units, you could easily stay in one and rent out the other, or if you buy them before they are fully developed, you could sell off one unit when it is completed – at a premium! Condominiums are a good long term investment given how densely populated cities are becoming nowadays.

Investing in several apartment units is, without a doubt, the most secure option. This is because should any unforeseen circumstance happen to one of the properties, then only that property will be affected. Let’s think of it this way, if one of your apartment unit is destroyed by a fire, the remaining four properties will not be affected.

In addition, receiving rentals every month increases your passive income. However, owning and renting out several properties at the same time can be a hassle as you will have to deal with several different renters.

We recommend going for the second option if you’re looking for a safe and hassle-free investment. However, if you feel that you are able to manage several apartment units and would like to diversify your risk as much as possible, you could go for the third option.

We would only recommend buying a terrace house if you have enough savings to weather out any misfortunes. In a nutshell, if you are a risk taker then you should invest in a terrace house. On the other hand, if you are a risk averse, then investing in two condominium units or several apartment units will be a better choice for you.

To conclude, not investing in properties could be one of your top financial regrets. To avoid being trapped by your own financial regrets, make sure that you’ve done plenty of research, reach out to professional financial advisors for tips and learn how to be your own financial planner. 

This article is brought to you by Loanstreet.com.my (in collaboration with AKPK) Malaysia’s leading independent loan comparison website.

The idea of taking out a personal loan can be quite intimidating to the uninitiated. All kinds of myths about personal loans exist, and sometimes these false beliefs can be the biggest thing holding people back from utilising personal loan financing to better their lives or to achieve their goals.

There are many informative tools on the internet such as personal loan calculators, as well as interest rate and comparison pages, but these are all of limited use for people who believe the wrong things and make decisions based on hearsay instead of cold, hard facts. Here are the top five myths about personal loans, busted!

Myth #1:  People with bad credit shouldn’t even think about getting a loan

Having a good credit score is crucial in securing a personal loan with a favourable interest rate. Once upon a time, it used to be that having a poor credit history could be a death blow to your hopes of getting your loan application approved. These days however, bankruptcies or missed payments are not viewed that seriously as they used to be, unless punitive actions are taken.

If you’ve managed to maintain a reasonably good credit utilization ratio for the past few years, then you can still get your personal loan approved. This ratio is calculated by dividing your total credit card balances with your total credit card limit. Note that the interest rate or the amount you are allowed to borrow may differ.

You can get a more favourable interest rate by putting collateral for the loan, which will then reduce the rate considerably.

Myth #2:  Your bank is always the best source for personal loans

You might be under the assumption that your bank is the best place to get a favourable personal loan, but that may not always be the case. Each bank or financial institution has different personal loan requirements and policies, depending on their risk appetite and their choice of strategy.

Some banks charge a higher interest rate to low-score borrowers, while others target only high-score borrowers at a low interest rate. Make your queries thoroughly before you come up with a final decision.

Myth #3: You can only get one loan at a time

Not true! You are eligible to apply for more than one loan if you have sufficient cash flow, a good credit score and the right debt-to-income ratio. However, you must keep in mind that multiple loans mean increased interest rates and a high debt-to-service ratio (DSR). The loans must be for productive purposes and the total commitments to net income or Debt Service Ratio (DSR) remain ideally below 40%.

So think twice before taking this step since you might put yourself in a risky position if you are not good at managing multiple debts well. Remember, never bite off more than you can chew!

Myth #4:  Loans are always cheaper than credit cards

Credit cards vs personal loans, which is cheaper? Credit cards are supposedly more expensive than personal loans, and most of the time, this happens to be the case. However, there are many types of credit cards these days, and there is actually one type of card that would trump taking out a personal loan. 

Provided that you are borrowing a relatively small amount of money for a short period of time (preferably one year or less), making use of a 0% annual percentage rate (APR) credit card may actually be a better choice than taking out a personal loan.

In this way you can pay back the money without being liable to any interest payment, and you also need not worry about your low credit score. This is because credit cards for bad credit charges a rate between 24% - 30% whereas personal loan for bad credit scorers will be charged 36% on average.

Myth #5: Loans will never help you shrink your debt

It makes sense, right? Taking out more debt should only add to your existing debt pool, not help reduce its burden on you, or so the thought process goes. However, this may not always be the case. In the right circumstances (for example, market interest rates drop), you can refinance your existing loans by taking out a larger personal loan to pay off all your other loans and consolidate them under one obligation. However, do be mindful of your DSR and don’t overcommit.

This does not necessarily reduce your debt total, but when used right, it can help you take advantage of fluctuations in interest rates or allow you to renegotiate the terms of your loan to one that is more favorable. This is also known as debt consolidation, and it can help you save a bunch on interest costs! You will remain with only one loan to handle with a comparatively low interest charge payable altogether.

If you are unsure on how to do this and require assistance in terms of financial advice, make sure you pay a visit to the Credit Counselling and Debt Management Agency (AKPK), a subsidiary of Bank Negara Malaysia (BNM). Set up in 2006 to assist people in financial management, their services are free of charge and the agency has a bigger authority to negotiate with banks and financial institutions on your behalf.

Conclusion

It never pays to believe in myths or hearsay blindly. Personal loans can be a powerful financial tool for achieving your goals, but with all things good and bad, make sure that you do painstaking research first and are more than ready to take on the financial responsibility!

This article is brought to you by Loanstreet.com.my (in collaboration with AKPK) Malaysia’s leading independent loan comparison website.

Are you thinking about taking out a loan? Some people have managed to reap the benefits of a particular loan such as that of a SME business taking on a loan for operating capital as well as the funds necessary for the purchase of inventory. The business is guaranteed an inflow of money for certain period of time – without having to provide the bank with an ownership position or an involvement in the aspect of running the business.

On the other hand, there are individuals who sign up for a personal loan due to a need for a flexible option that allows them to use the monies for a variety of situations: buying a car, renovating the home, or making a cross-country move for one’s career. A personal loan is usually unsecured, which means there’s no need to provide collateral. 

However, there are plenty of horror stories of people taking the wrong loan and failing to get the best value for their money, some of whom even end up deeply in debt. According to the Credit Counselling and Debt Management Agency (AKPK), there have been over 198,000 people who have enrolled in their Debt Management Programme (DMP) for help. The number one cause for this predicament was poor financial planning, making up a whopping 44.7% 

The best way to avoid an unhappy ending is with the right research, where hopefully you'll be on your way to getting the best fit. Easier said than done, you say. Well we’re here to help; keep reading to find out about the six most common mistakes people make when applying for a loan.

1) Lack of research and / or comparison

There is an idiom which tells one to “test the waters”. The same applies when choosing a loan. It’s not only vital to conduct proper research; you’d need to spend time exploring available products in the market for the product that best suits your needs. It wouldn’t do for you to just throw yourself wholeheartedly into the first low-interest offer that comes your way.

Know your financing options well and find the most competitive rates available by visiting trusted credit sources or by using verified comparison tools online. Consult with financial experts to learn about possible alternatives that you can also explore, and have them help you to establish terms and a repayment plan that is both reasonable and achievable.

Do not hesitate to ask your credit representative about any concerns you may have, regardless of how silly you think your questions may sound. Remember, there is no such thing as a stupid question.

 2) Disregarding your credit score

Your credit score is one of the most important factors that banks take into account when determining whether or not to approve your loan, as well as what interest rate they’re about to quote to you.

Through your credit score, banks can find out how punctual you have been when it comes to paying your bills and equated monthly installments (EMIs). If you always repay your debts on time, then you have no reason to worry, since your credit score will be good.

However, if you have a low score, you should try to fix it first by repaying any outstanding debts before you apply for a loan in order to avoid having to settle for unfavourable terms. Check out Everything You Should Know About CCRIS for more guidance on how to improve your credit score. 

Once that is taken care of, you should also ensure that the loan amount you’re eyeing tallies with your DSR. What’s that, you ask? The DSR, or debt service ratio, is expressed as a percentage of the individual’s income that shows how much of a person’s earnings are used to service debt installments.

The simplest calculation for this is:

DSR = Commitment / Income

The generally accepted percentage for most banks is at 60% so any debt below that threshold would mean that your loan has a higher chance of being approved. However, the max allowable DSR rate isn’t determined by income level alone, it can be affected by net worth, qualifications and even one’s age.

3) Failure to read the fine print

When applying for a loan, it’s easy to miss out seemingly minor details in your contract due to carelessness (or even sheer indifference). This will lead to you having to pay exorbitant fees in the long run. Why do you think lending institutions make you sign dozens of documents for a loan agreement? 

It’s not for your reading pleasure, that’s for sure. Remember that each signature is proof of your acknowledgement and acceptance of the terms. This is usually included in the fine print stating that annual fees, bank charges, closing costs, commissions, length of loans and balloon payments are required. 

Ensure that you’re well informed and have read the hidden clauses of the agreement. Be aware of the interest rates and the penalty costs on late payments before signing any documents. Ask for a sample of the loan agreement for you to take home so you can read it thoroughly overnight.

Patience is a virtue, and when it comes to taking out a loan, it pays to channel your inner Mandela. Or Ghandi. Or a tortoise. Tortoises are patient, right?

4) Incomplete disclosure

Don’t leave any ‘ifs’ or ‘buts’ when filling out your loan application form. Make sure to fill all your personal details with complete honesty and be as precise as possible. Incomplete disclosure or providing false information may hurt your credit rating and can even lead to legal action being taken against you. 

As a result, not only will you be forced to repay your loan immediately but you may also be charged a hefty fine for committing fraud. Remember – a genuine and comprehensive loan application is a good loan application.

5) Going overboard

Before applying for a loan, always make sure to estimate the amount of money that is required to suit your needs. A loan can sometimes charge a high interest rate since you are not required to disclose the reason for taking the loan or provide any collateral for it. Therefore, don’t fall into the trap of thinking of it as extra ‘free’ money and commit to a large debt. 

Exercise extreme caution whenever you’re borrowing large amounts of money because the larger the loan, the more cost is attached to it in terms of interest and recurring expenses.  Borrow just enough for your purposes, and no more than that. It’s a loan - not free money.

6) Patchy paperwork

Okay, so you’ve been really busy – we’ve all got those days. Hunting for the best loans takes time, and you have so many more important things to worry about than getting your documents in order. Paperwork? Nope, no time for such tedious trivialities. 

Listen up though. ALWAYS make sure to take some time to organize your paperwork so that the lending institution is confident about your credibility. Don’t cut corners. No one’s going to trust – or like, for that matter – someone with a box of crumpled papers filled with illegible writing. Always state your nett salary instead of your gross salary to avoid confusion. 

Additionally, make sure to file your Income Tax Returns (ITRs) regularly even if you are an average earner as banks always ask for your ITR as a criterion before granting a loan. One other thing you should be careful about is to mention your residential address in your paperwork correctly, as lenders may ask for proof of lease or utility bills to prove you have been living at your address for some while. 

To conclude

So if you’re planning to sign up for a loan, make sure to avoid these six mistakes in order to save yourself from having to go through the painful ordeal of a messy loan cycle. Don’t say we didn’t warn you!

This article is brought to you by Loanstreet.com.my (in collaboration with AKPK) Malaysia’s leading independent loan comparison website.

Kamala*, seorang ibu tunggal yang berumur 47 tahun, telah datang ke AKPK sambil menangis. Beliau berada di ambang kehilangan satu-satunya rumah milik beliau dan kelihatan bingung memikirkan masa depan ketiga-tiga anaknya yang masih mengharapkan sokongan kewangan daripada beliau sendiri. Semenjak 5 tahun yang lalu, Kamala telah dijadikan balu apabila suaminya tiba-tiba meninggal dunia akibat serangan jantung. Sejak itu, kualiti kehidupan Kamala bersama anak-anaknya semakin merosot.

Kamala berkerja dengan tekun tanpa megira masa  di kilang pembuatan dengan pendapatan kurang daripada RM2,000. Jumlah pendapatan itu hanya cukup untuk memenuhi keperluan anak-anaknya sahaja. Jelas di ingatan Kamala bahawa mereka sekeluarga belum pernah lagi merasai pakaian baru sejak kematian suaminya, disebabkan mereka tidak mampu. Walaupun pendapatan Kamala yang sedikit, namum beliau tetap bijak membahagikan wang untuk perbelanjaan harian. Tidak pernah beliau jangka yang beliau sekeluarga akan kehilangan tempat berteduh.

Keadaan keluarga Kamala bertambah parah apabila beberapa bulan yang lalu, kilang tempat Kamala bekerja terpaksa ditutup. Malang bagi setiap pekerja kerana  syarikat tidak membayar apa-apa pampasan kepada para pekerja mereka. Kini Kamala hilang segalanya termasuk tempat bergantung. Saudara-mara beliau juga tidak dapat memberikan bantuan kerana masing-masing mempunyai masalah mereka sendiri. Berbulan-bulan Kamala   berusaha gigih untuk mendapatkan pekerjaan lain bagi menyara hidup keluarga sendiri dengan kadar pendapatan yang selayaknya.

Namun, usaha beliau tidak berhasil kerana Kamala masih gagal mendapatkan perkerjaan. Ini menyebabkan beliau turut gagal menjelaskan bayaran balik pinjaman bagi bulan berkenaan. Kamala akhirnya tiada pilihan lalu bekerja sebagai sebagai tukang cuci yang hanya dibayar sesuku daripada pendapatan beliau sebelum ini. Anak lelaki beliau yang baru sahaja tamat persekolahan terasa bertanggungjawab lalu keluar mencari pekerjaan bagi meringankan beban ibunya dengan pendapatan tambahan senyak RM1,000 sebulan. Kini pendapatan bulanan sekeluarga yang bertambah sebanyak RM1,500 melegakan beban sedikit, walaupun pada hakikatnya ia masih tidak mencukupi.

Sebaik sahaja kehidupannya kembali normal, Kamala dikejutkan dengan berita tentang lelongan kediamannya. Beliau terkejut bahawa tarikh lelongan telah ditetapkan. Keadaan bertambah buruk apabila Kamala tidak tahu dimana mendapatkan bantuan bagi memperolehi wang untuk menghentikan lelongan rumah beliau. Setelah menyuarakan masalah tersebut kepada seorang rakan, beliau telah disyorkan untuk mendapatkan nasihat AKPK.

Kamala kembali tenang apabila kaunselor kami memberitahunya bahawa mereka akan berunding dengan institusi perbankan yang terlibat dan membuat bayaran pendahuluan minimum dari akaun KWSP ke atas rumahnya. Dalam masa sehari agensi berjaya berunding dengan bank dan menghentikan lelongan tersebut. Jumlah pinjaman perumahan beliau juga disusun semula mengikut pelan pembayaran balik yang lebih berpatutan. Walaupun Kamala menyedari bahawa dia perlu bekerja keras untuk bersaing dengan pembayaran komitmen beliau, Kamala yakin bahawa dengan bimbingan AKPK, kini beliau kembali berada di landasan kewangan yang betul.

Apabila Rosman* bersara daripada perkhidmatan pos pada tahun 2005, beliau mempunyai banyak impian yang ingin beliau laksanakan. Keluarganya tidak sabar menunggu hari tersebut kerana mereka ingin menghabiskan masa bersama-samanya. Rosman mempunyai pelan persaraan yang agak selesa. Bebas daripada hutang dan mempunyai simpanan lebih daripada RM60, 000 dalam KWSP, Rosman berharap agar masa depan yang bakal dilaluinya akan cerah. Rosman merasakan bahawa sebagai seorang bapa yang bertanggungjawab, beliau mesti menjamin masa depan yang lebih baik untuk anak-anaknya dengan menyediakan pendidikan yang lebih baik bagi mereka.

Kurang mahir, pesara dan cekal, Rosman tetap mencari penyelesaian untuk menambahkan wang simpanan beliau melalui skim cepat kaya dalam bentuk pemasaran piramid. Pada mulanya ia kelihatan seperti pelaburan yanga akan menguntungkan. Rosman lebih tenang dan merasa yakin bahawa impiannya akan menjadi kenyataan. Beliau mula berbelanja lebih di kedai-kedai mewah kerana ingin menukar gaya hidup keluarganya. Rosman meyakinkan dirinya bahawa selepas bertahun-tahun bekerja keras, beliau layak untuk membelanjakan wang tersebut. Beliau juga merasakan keluarganya berhak untuk mengecapi kemewahan dan merasakan kegembiraan. Namun begitu, seperti mangsa-mangsa skim cepat kaya yang lain, Rosman telah kehilangan semua wang miliknya apabila syarikat beliau melaburkan duit itu hilang. Kesemua simpanan KWSP beliau telah lesap bersama-sama syarikat terbabit dalam sekelip mata.

Kerugian di atas kehilangan wang itu menyebabkan beliau cenderung menggunakan kad kredit untuk membayar bil-bil dan juga perbelanjaan keluarganya. Beliau memilih untuk menggunakan kad kredit kerana tiada pilihan lain. Tanpa pekerjaan tetap dan pendapatan yang tidak mencukupi, Rosman telah menggunakan kad kredit beliau sewenang-wenagnya untuk mengekalkan kesejahteraan keluarganya. Dalam usaha menambah pendapatan, beliau membuka kelas tuisyen kepada kanak-kanak dalam kawasan kejiranan manakala isterinya menyediakan perkhidmatan mengasuh anak-anak kecil di rumah mereka. Namun begitu, godaan kad kredit adalah terlalu besar. Hasratnya untuk menjadi cepat kaya sekali lagi wujud apabila Rosman membayar yuran langganan yang mahal dan diluar kemampuannya dengan harapan beliau akan memenangi cabutan bertuah di mana peluang kemenangan sememangnya tipis. Tanpa disedari, hutang Rosman menjadi RM43,000 dan beliau tidak lagi mampu melunaskan hutang tersebut.

Keadaan menjadi parah apabila beliau sering diganggu oleh pemiutang lalu beliau memutuskan untuk mendapatkan bantuan daripada AKPK. AKPK berjaya membuat rundingan dengan bank-bank tersebut . Rosman juga dinasihatkan agar memberikan kereta milik beliau kepada pembiaya dan sebaliknya menggunakan motosikal sebagai pengangkutan harian. Ini dapat membantu beliau mengurangkan perbelanjaan bulanan untuk kereta dan pada masa yang sama, masih bebas berbelanja untuk barangan keperluan rumah. Pelan AKPK adalah satu pelan ringkas yang Rosman dapat patuhi. Oleh kerana bantuan dan perhatian yang diberikan oleh AKPK dalam menyelesaikan masalah kewangan En Rosman, beliau akhirnya mampu menjalani hidup yang lebih selesa disamping keluarga tersayang serta jauh daripada ancaman pemiutang.