Article taken from Bernama
KUALA LUMPUR, Aug 17 -- The Credit Counselling and Debt Management Agency (AKPK)settled nearly 6.2 per cent or 8,321 cases under its debt management programme (DMP) as of July this year.
Deputy Finance Minister Datuk Chua Tee Yong said with cases amounting to RM345.6 million settled, the government expects the success rate to continue improving.
"Some of the loans (in outstanding cases) are long term in nature, such as housing loans of 20 to 30 years.
"In time, they will settle their loans," Chua told a press conference after his visit to the AKPK office here Monday.
He said its since inception (in 2006) and up to July 31, 356,935 individuals had attended AKPK's counselling services and of this number, 135,042 of them had enrolled in the DMP.
"AKPK can also act as an intermediary or provide direct assistance to the borrowers in negotiating with the banks.
"More people should seek the AKPK's free services, and not fall victim to unscrupulous parties, who offer chargeable loan restructuring services," he added.
According to Chua, those in the 25-44 age group were those who normally had financial problems.
"Those who have just started working can also approach the AKPK for advice," he said.
AKPK'S Chief Executive Officer Azaddin Ngah Tasir said poor financial planning remained the top reason for defaults or debt problems.
"Poor financial planning was tops at 22.3 per cent as at end-July and 80 per cent of it was due to cases of mismanagement in credit card usage," he told the same conference.
Other reasons for the high default in servicing debts under the DMP were the failure or slowdown in business (16.7 per cent) and high medical costs (14.3 per cent).