AKPK to focus on financial education to create awareness

Category: Basic Money Management Published: Thursday, 16 October 2014 Written by Admin

 

Credit Counselling and Debt Management Agency (AKPK) plans to focus on financial education to create awareness to the public on basic money management skills and the responsible use of credit.

Its newly appointed CEO Azaddin Ngah Tasir said the financial education plays the most essential part to curb the financial debt problem and act as an early prevention to it.

"We believe prevention is better than cure. In other words, we better educate them before they fall into the debt traps," he said during the sideline of the AKPK's Memorandum of Understanding (MoU) signing with Amanah Ikhtiar Malaysia (AIM) yesterday.

Under his leadership, he wants to change the perception of the people that AKPK is not just the place for highly indebted individuals but for everyone that need professional advice in managing their finances.

Azaddin said he plans to introduce various programmes that will suit all lifecycle going forward next year, which will focus on universities students, fresh graduates, individuals who want to raise a family and also retirees.

He said these four categories of people have different needs for instance young people would keen to know more about car loans and credit card procedures while those who are raising a family would like to know more about insurance and how to protect their children.

"We would like to provide them with such professional advices and we provide it free of charge," he said.

To date, 292,775 individuals have attended AKPK's counseling services and from that number, 115,706 customers have applied to enroll into its debt management programme (DMP).

Azaddin said out of the 115,706 cases they received through DMP since the programme been introduced, 6,271 cases with total outstanding of RM255.1 million has been successfully solved while 69,666 cases is still under the programme with a total portfolio value of RM5.7 billion.

He said financial planning was the main cause of debt problems with 22.8%, follow by high medical expense and failure or slowdown in business registered at 16.2% and 16.1% respectively.

Other reasons includes lost control on usage of credit, job retrenched and high cost of living.

Commenting on whether high cost of living will increase the debt cases, Azaddin said the issue of high cost living is not new and it is the responsibility of the individual to manage their financial.

"As consumer, we need to lay out a plan when we buy something or getting out a loan to make sure we are capable of affording it.

"We in AKPK are willing to help in providing professional advises to everyone to assist them on their financial management," he said.

Earlier, AKPK has signed a MoU with AIM to enhance financial education among the members of AIM called SAHABAT.

This move is to help SAHABAT to gain the skill in managing their finance and sustaining their businesses.



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