What can you do if you are neck-deep in debts without any solution in sight? Usually, adequate knowledge and good financial habits can really help to turn things around. That’s why many turn to AKPK’s debt counselling services. But enrolling in AKPK has a downside —the AKPK status.
If you’re hesitant to enrol because you’re worried about getting enough cash to clear your debts and remove your AKPK status, we’re here to help! Read on to know more about AKPK and how refinancing can remove your AKPK status so you can get your life back on track.
What is AKPK?
The Credit Counselling and Debt Management Agency, also known as Agensi Kaunselling dan Pengurusan Kredit (AKPK), is a non-profit agency established by Bank Negara Malaysia. AKPK helps individuals regain control of their finances and get out of debt.
How Does AKPK Help You?
Here are the primary services provided by AKPK:
- Financial education on being financially responsible and credit management skills
- Financial advisory for money management, budgeting and credit-related issues
- Debt Management Programme
- Small Debt Resolution Scheme
Most importantly, all their services offered are free of charge to individuals.
The Disadvantages of Enrolling in AKPK
Under the Debt Management Programme, AKPK’s financial advisors will develop a personalised debt repayment plan depending on your income, daily expenses and debt. However, here are some things that you should know when you enrol in the Debt Management Programme.
- Restricted lines of credit
You will no longer have access to your line of credit. In other words, your credit cards will be cancelled, and you cannot make bank overdrafts. However, obtaining new credit lines while enrolled in the programme is subject to the financial institution’s discretion.
- CCRIS Report Status
Your status of having joined AKPK’s Debt Management Programme will be shown on your CCRIS report. This may lead to difficulties in applying for loans even after you exit the programme.
- Impact on Credit Score
Typically, enrolling in AKPK’s Debt Management Programme will lower your credit score. In your credit report, it will be shown that you will be paying less than the original monthly repayment amount. Thus, you may appear as a high-risk borrower to lenders.
How to Improve Cash Flow with Refinancing
Homeowners with high equity in their homes can refinance their mortgages to cover the cost of their debts or other financial needs.
Here is a case study to further illustrate how refinancing can help individuals under AKPK’s Debt Management Programme.
Mr Sin is the owner of an auto parts trading company. He has engaged BlueBricks to help him settle his debt and remove his status under the AKPK.
We helped Mr Sin to refinance his home successfully and obtain a loan to clear his debts and remove his status under the AKPK:
|Interest rate||3.55% per annum|
|Total monthly repayment||RM1,124|
|Repayment tenure||420 months (35 years)|
Interested to know more? Check out the full client story on our website.
How BlueBricks can help you
The Debt Management Programme by the AKPK can help individuals with unmanageable debt with a clear action plan to tackle their debts wisely. Not only that, but you can also receive sound financial advice and counselling that will help you manage your finances.
At BlueBricks, we help you with refinancing solutions to remove the AKPK status in your credit report and restore your financial credibility.
A leading loan agency company in Malaysia
BlueBricks is a professional loan specialist agency in Malaysia with years of experience providing financial consultancy and comprehensive loan rejected services.
Whether you are submitting or resubmitting a new loan application, BlueBricks offers FREE consultations as well as CTOS and CCRIS reports to ensure that your loan is approved. Furthermore, we do not charge any upfront fees for our consultations or reports until you have secured your loan.
Trusted Loan Rejected Services
As a leading one-stop solutions provider of comprehensive loan rejected services, BlueBricks also provides refinancing loan rejected services for those with low credit scores and AKPK status.
We can help identify underlying issues and reasons for your loan application rejection. Before your resubmission, we will amend and readjust your documentation for resubmission to the bank with a higher chance of approval.
Read more about our refinance housing loan rejected service and discover how we can help you reach your financial goals.
AKPK Status – FAQ
Refinancing your mortgage to clear off your debts under the AKPK can be a smart financial move. Here is our quick guide to help you better understand the financial impacts of the Debt Management Programme.
At first, enrolling in the Debt Management Programme will lower your credit score slightly. Lenders will also see that you are repaying your debts at a lower rate, which may affect their evaluation of whether or not to approve your loan.
You can apply for the Debt Management Programme online through their website. Before you do so, make sure that you fulfil the criteria to apply and prepare the necessary documents. Then, you can fill up the online application form.
The financial counselling and Debt Management Programme services offered by the AKPK are free of charge for individuals.