Tag Archives: debt management plan

Don’t Want To Enroll In AKPK DMP? Then, Start Managing Your Debt Now!

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Posted by Vedis the DMP Blogger on January 9, 2010 – 8:50 am
Filed under AKPK Debt Management Plan, Auto Installment Loans, Cash Is King, Credit Card Debts, Credit Cards, Debt Management Tips

You have a debt problem, but it’s not serious enough to get you into AKPK debt management program yet? Lucky you! If you don’t want to resort to enrolling in AKPK’s DMP or declaring bankruptcy in future, then make sure you start managing your personal debt now.

Here is Raymond Roy Tiruchelvam’s article on How to Manage Personal Debt.

THE “easier said than done” phrase latches on to this topic like ants to sugar. While getting into debt is made easier today with the many innovative marketing plans undertaken by financial institutions, getting out of if, leaves much to be pondered.

For those who do not see the light at the end of the tunnel, Bank Negara has introduced AKPK or Credit Counselling and Debt Management Agency. I am assuming a single source of funds being financial institutions, and not “ah-longs” and other unconventional sources.

There is actually one step to be undertaken prior to managing your debt, which is managing your cash flow. It does not mean that if one is a millionaire, there is no need for debt management … well perhaps there is no need, since the ability to source for debt is high, but everyone will need to manage their cash flow, let it be millionaires or paupers.

Let’s look at some steps that we can take to ensure that we are able to manage our personal debts so that we do not go into the “PN4” or “PN17” status (which for companies implies a financially distressed state).

Let’s start with liquid debts, credit card and car loans. For the former, never follow the minimum payment requirement of the bank, which is 5% of outstanding sum. The reality is that it does not diminish in 20 months (5% X 20 months = 100%) – which is the general misconception.

Instead, spread the payment over a reasonable payable period. For example, if you purchase a personal computer for RM1,500 perhaps, you want to make a RM300 monthly payment over 5 months, rather than pay RM75 in the first month, then RM71 for the second month and so on (assuming one follows the minimum 5% payment, excluding interest charge).

As a matter of fact, if one were to purely pay the 5% minimum payment, do you know that it will take 50 years for the sum to trickle down to RM100. And mind you, even with that, the debt won’t be fully settled. Read More »

A Free Debt Management Program Blogger Loves Reading Debt-Free Success Stories

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Posted by Vedis the DMP Blogger on November 29, 2009 – 9:31 am
Filed under Credit Cards, Debt Management Programs, Debt Management Tips

Having been in a free debt management program since October 2008, I must say that reading news, articles or success stories of cutting up credit cards, paying off debts and living cash-or-debit-card-only lifestyle is very inspiring.

The success stories of getting rid of debts motivate me to keep on paying down my credit card debts through the debt management plan and most important of all, they give me hope that I can be debt free one day.

I want to be like Russell and Kathy Hildebrandt who successfully pay off $100,000 debt with DMP or Lisa Brough who was forced into a debt-free life:

Lisa Brough was forced into a debt-free life by medical disaster.

Her husband has Huntington’s disease, a degenerative brain disorder, and has been unable to work since 1999. The couple, who have three children, saw their finances suffer as a result. They ended up with $50,000 worth of credit card debt as Brough worked two jobs and still struggled to pay the bills and the high property taxes on their home in Westchester County, N.Y.

“I said to myself, ‘I can’t do this anymore,’ ” she recalled. “He was going downhill, and I had to figure out a way to get out of this. I couldn’t count on tomorrow because I didn’t know what tomorrow would bring.”

In 2005, she took drastic measures. She decided to sell her $350,000 home, pay off all the family’s debt, and move to lower-cost Cary, N.C., where she was able to buy a house for $164,000 house in cash.

Since then it’s been cash and debit cards only for Brough, 50, who has no debt of any kind.

My reasons of getting into knee deep debts were more or less the same as theirs. However, their ways, means or methods of getting out of debts may or may not the same as mine.

By reading and utilizing their tips on how to eliminate the debts and save money, I hope I can be free of credit card debts through the debt management programme in a few years’ time.

The success stories of others also make me realize that it is possible to survive and thrive without depending on credit cards!

Is There Really Such A Free Debt Management Programme?

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Posted by Vedis the DMP Blogger on November 11, 2009 – 3:58 pm
Filed under AKPK Debt Management Plan, Credit Card Debts, Debt Management Companies, Debt Management Programs

AKPK Free Debt Management Programme“Is there really such a free debt management programme?” Yes, but you must be a Malaysian in order to enroll in the debt management plan.

The free debt management program is offered by AKPK, Agensi Kaunseling dan Pengurusan Kredit, in Malaysia.

As a credit-card-debt woman who has been in AKPK’s debt management program for a year now, let me assure you that it’s a free DMP that involves NO credit counseling fee, NO enrollment fee and NO monthly service.

It’s normal that when you are looking for help with a financial crisis, you may wonder if AKPK is really a free of charge agency that can help you. The answer is YES.

You may have heard of for-profit and non-profit credit counseling and debt management agencies, but they don’t exist in Malaysia. There is only ONE credit counseling and debt management agency that provides free credit counselling and debt management programme services in Malaysia so far.

Like you, I am worried about hidden charges too. Malaysian banks, agencies and companies are simply too notorious for charging surprise fees and hidden charges to consumers. Fortunately, I haven’t been charged any fees by AKPK so far.

With the faltering economy and free credit counseling and debt management services offered by AKPK, the number of people seeking help from the agency has increased tremendously.

If you think that you are in need of help for your financial trouble, you had better waste no more time. Waiting may only end up costing you more. A few days’ time can mean the difference between settling a debt or watching it go into a default status and having third party collection involved.

Hurry! Go to a nearby AKPK branch, attend its briefing and fix an appointment to see a credit counselor there and understand what a debt management program is.

A debt management program is a good way to take care of an escalating credit card debt and other money problem without having to declare bankruptcy or deal with collection agencies.

A Debt Management Program When You Can No Longer Pay Your Credit Card Debts

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Posted by Vedis the DMP Blogger on October 19, 2009 – 2:56 am
Filed under Credit Counselors, Debt Management Programs

What happens when you can no longer pay your credit card debts or credit card payments? Well, you have the option of a debt management program to help bring you back to right financial track.

Debt management program, also known as debt management plan, is individually designed to consolidate all your multiple credit card payments into one lower payment.

The debt management repayment is often made affordable to you so that you can pay all your credit card payments.

Of course, a debt management plan is NOT an option for you if you are already at advanced litigation process or involved in bankruptcy.

If you find that a debt management program is right for you after a credit counselling session, your credit counsellor will start negotiating with your creditors to lower the credit card monthly payments, reduce the interest rates, and waive late payments and over-the-limit charges.

Often times, your creditors or banks will agree to the affordable repayment plan just so they can receive any amount of payment towards the balance you owe them.

As a credit card debt woman who is now in a free debt management program, I must admit that it is a great solution for helping me get rid of my credit card debts.

The DMP not only allows me to pay ONE lower repayment every month, it also stops the wave of annoying or even threatening phone calls or warning letters from the banks and credit card companies.

Signing up for a debt management program is easy; it’s a matter of finding a credit counseling and debt management company you feel comfortable with that is difficult.

Make sure you find a credit counselling and debt management agency that will work best for you. Remember, you want the right debt management program to put an end to your pestering debt problem, not creating more debt.