Financial Security Post Moratorium is Vulnerable to Compulsive Spending

They were a small young family.

When they came to AKPK, the couple had a toddler and a preschooler. Both were salaried employees with decent income. They had a comfortable life until their compulsive spending turned the table.

The main culprit was their LIFESTYLE CHOICE. Guess what they had used to fund it? Exactly—credit cards!

When they had difficulty in paying them, they applied for personal loans to plug the repayments. Smart, eh? Well, that’s up for debate but the fact was IT DIDN’T WORK. They defaulted on the loan repayments not for long and were still abusing their credit facilities, and that included bank overdrafts. They were literally running on empty.

Another set of problems—unfortunately common—among young families is NO SAVINGS AND INVESTMENTS. In their case, they didn’t even own a house of their own. Big debts with no productive assets? That’s a financial ticking bomb.

It could have exploded had they lost their job. Apparently, one of them had already lost focus at work. Imagine being without income in all the financial mess they’re in. Luckily, the boss intervened and advised the couple to seek help from AKPK (just the kind of boss we all need).

First thing on the list of the AKPK counsellor they met was LIFESTYLE CHANGE—rightly so.

They stopped dining outside, brought lunch from home, took LRT to work every day and refrained from impulsive buying. All these HEALTHY FINANCIAL BEHAVIOURS were guided by a REALISTIC MONTHLY BUDGET drawn up in consultation with the counsellor.

On top of that, they enrolled in AKPK’s Debt Management Programme (DMP) that significantly reduced their monthly repayments to the credit providers. With AKPK’s programme and the couple’s resolve to change and keep up with the restructured repayments, they were on a sure way to managing their finances effectively.

As the saying goes—it takes two to tango.

Do you find yourself in a similar financial difficulties, and foresee a problem with your repayments post moratorium in October? You’re not alone and should never tackle it on your own. Seek help early. Contact your bank, or for FREE financial advice, contact AKPK at 03-2616 7766 or visit us at www.akpk.org.my.