Don't let income loss add to your debt post moratorium

Don’t Let Income Loss Add to Your Debt Post Moratorium 

Within a span of six (6) years, Kamarul had lost six (6) jobs. It did not make sense!

But, it was not difficult to comprehend such fate. It 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.

The only job he managed to secure during the trying time paid only RM600 on a good month. It was obvious that he needed to find other means of income to support his family and ailing mother. Kamarul then sought financial support from his relatives and friends but oftentimes, it was not enough.

When he finally got tired of asking for money, Kamarul used credit cards for more buying power. His life changed. Kamarul was able to buy almost anything he wanted. He could provide food on the table. The cards gave him security. Most of all, they gave him so much convenience. He no longer needed to beg around for some petty ringgit.

BUT, HERE’S THE CATCH. The bank kept increasing his credit limit. It was good news to him but over time, it turned ugly as his original credit limit of RM20,000 from six (6) different cards ballooned into a whopping sum of RM245,000.

Still, he was under the false impression that all he had to do was to pay the minimum payments on the cards while the balance could be paid off at a later date. How Kamarul was to know that the interest compounded over time when he was too busy blowing his credit—spending on glitzy items he and his family never had (A CASUALTY FROM THE LACK OF FINANCIAL EDUCATION)?

SO, HE HAD TO LEARN IT THE HARD WAY. Kamarul had moved to three different houses in short of two (2) years—all in attempt to avoid visits from debt collectors.

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Kamarul had already feeling worn out and simply wanted to be a better provider for his family. Kamarul had a baby on the way too and needed to build his life again for the sake of his unborn child. He sought harder for a well-paying career and finally secured a job with a stable income. However, he had too much debt to secure a happy future. It was then that he decided to seek the help of AKPK.

AKPK managed to negotiate with the financers and came up with A RESTRUCTURED REPAYMENT PLAN THAT WAS AFFORDABLE to him. Kamarul was so much relieved that AKPK managed to do so much for his overbearing debts. Getting out of debt was something Kamarul never thought was possible. He could now build his dreams without worrying about constant creditor harassments.

Is the pandemic affecting your income and your ability to meet your repayment obligations post moratorium this October? Get help and get help early. See your bank for targeted assistance, or for FREE financial advice, contact AKPK at 03-2616 7766 or visit us at www.akpk.org.my.