Youth Debt Crisis: 53,000 Youths Under RM1.9 Billion Debt, Says AKPK
The National Credit Counseling and Management Agency (AKPK) has revealed a concerning trend among Malaysian youths, with 53,000 individuals aged 30 and below drowning in debt amounting to nearly RM1.9 billion. According to a report by Malay daily Utusan Malaysia, these young adults are seeking assistance from AKPK to restructure their debts in order to restore their cash flow.
The main reasons cited for the youth’s financial struggles include expanding families, maintaining a certain lifestyle, housing loans, and vehicle purchases. AKPK’s credit management programme is designed to help individuals with loan issues related to housing loans, credit cards, personal loans, and more.
Statistics from AKPK show that individuals aged between 28 and 30 make up the majority of applicants, accounting for 65% of the agency’s clients as of March. Credit card debts top the list of restructured credit facilities, followed by personal loans, vehicle hire purchase loans, mortgages, and others.
AKPK emphasizes the importance of managing finances effectively to avoid falling into serious debt. Failure to repay loans on time can negatively impact one’s credit rating. The agency’s credit management programme aims to assist individuals in restructuring their loans based on their current financial situation, providing relief from legal action and debt collector harassment.
As the number of young adults struggling with debt continues to rise, AKPK’s efforts to help individuals achieve financial stability are more crucial than ever. It serves as a reminder for all Malaysians to prioritize financial management and seek assistance when needed to avoid falling into the debt trap.
