Growing number of couselling reflective of AKPK’s efforts

KUCHING: Efforts by Agensi Kaunseling dan Pengurusan Kredit (AKPK) in assisting the public to manage debts are paying off as since inception up to January 31 this year, 527,831 individuals have attended counselling services.

From that amount, a total of 172,452 customers or 32.7 per cent have applied to enrol into AKPK’s Debt Management Programme.

“Consumers who approached AKPK for assistance are from all walks of life. In most cases, the factors contributing to their over-indebtedness and inability to repay their debts include poor financial planning, ignorance and lack of financial discipline to live within their means,” the agency said in a statement.

“Financial difficulties could also be triggered by unanticipated or change in circumstances such as health problems, death of a breadwinner, loss of employment and business failure.”

To note, AKPK’s consumer education programmes aim to nurture more financially astute borrowers and at the same time promote good payment and repayment culture. Increasing consumers’ financial literacy enhances their appreciation for the need to save, which serves as the basis for wealth accumulation, preparedness for financial uncertainties and a comfortable retirement.

AKPK’s goal is to provide a variety of educational services designed to help individuals take control of their finances and gain peace of mind that comes from the wise use of credit.

“By promoting awareness and educating the public on how to manage their debts effectively, as well as providing counselling and a specially tailored Debt Management Programme to cater to financially burdened individuals, AKPK hopes to help curb the financial-related issues faced by Malaysian households today,” it added.

AKPK, a wholly owned subsidiary of Bank Negara Malaysia, was set up in April 2006 to proactively ensure the resilience of households by providing an avenue for individual borrowers and potential borrowers to seek advice and assistance in managing their finances and debts.

Therefore, there is a need to create awareness of AKPK’s services to enable all those requiring its services to come forward to AKPK.

With effect from March, AKPK said it offers two services free of charge: the counselling and advice on financial management (including financial budgeting to manage expenses) and Debt Management Programme (to assist financially distressed consumers in regaining their financial control).

“Individual borrowers can seek AKPK’s assistance in rescheduling or restructuring their housing loans, hire purchase loans and personal loans from, or outstanding credit/charge card balances due to, financial service providers under the purview of Bank Negara Malaysia.”

Since its establishment in April 2006, AKPK has made significant progress, especially after it has expanded its outreach through branches in Penang, Johor Bahru, Kuala Terengganu, Kuching, Kota Kinabalu, Malacca, Kuantan, Ipoh, Alor Setar and Kota Bahru to make its services available to a wider segment of the Malaysian population.