ALOR SETAR, The Kedah branch of the Credit Counselling and Debt Management Agency (AKPK) restructured 3,512 credit card facilities with a total value of almost RM39 million in 2023 through its Credit Management Programme (PPK).
Kedah AKPK branch head Mohd Faizal Mohd Salleh said the credit restructuring service helped many individuals restore their financial position to the optimum level through comprehensive and holistic repayment plans.
“There is an 18 per cent increase (in credit card usage) in 2023 compared with 2022, thus showing a rising trend of credit card usage in daily financial transactions among consumers.
“If used wisely, credit cards can prove useful. But, if credit cards are used beyond a person’s financial means, it can lead to them falling into serious debt,’ he told Bernama today.
He said that of the total debt problems in 2023, credit card debt was the worst at 41 per cent, followed by personal loans (40 per cent), housing loans (six per cent), car loans (five per cent) and the rest in
volving other categories.
“Based on AKPK’s research of PPK participants, one of the reasons they find themselves in a financial quandary is their lack of exposure to efficient financial management and the high cost of expenditure caused by an increase in their family members.
“Spending more than they can afford to also causes these individuals or families to use credit cards in an uncontrolled manner, which eventually leads to them being burdened by debts that affect their cash flow,’ he said.
He said this would affect their ability to repay the loans and debts according to the stipulated amount and period, thus affecting the borrower’s credit rating.
Mohd Faizal advised the public to act immediately in seeking assistance if they are faced with financial problems and that AKPK is always open to the public to get advice on financial and debt management.
“The AKPK plays a crucial role in helping individuals recover from financial and debt problems. All financial advisory and credit management services by A
KPK are free and AKPK doesn’t appoint agents of third parties to represent it in any matter,’ he said.
Source: BERNAMA News Agency
