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AKPK Success Stories

Note: *The names specified in these stories have been changed to protect the identities of the individuals involved. These success stories are meant to merely provide information on AKPK's services and lessons on money management.
Compiled from http://www.akpk.org.my/learning/success-stories Story 1 When Mr Ramon* stepped into our premises, he was three years into battling a debt he previously knew nothing about. Back from the United States after residing there for 15 years, he came to find out rather shockingly that he was RM66,000 in debt due to credit cards. This information startled him as he was extremely sure he paid off all of his debts before leaving for the United States. When he checked with the banks, he found out that it was not an outstanding balance that he did not pay that caused the debt, but rather his lack of foresight when he forgot to cancel his credit cards. Both the banks levied finance charges on membership fees and the amount ridiculously ballooned in a matter of years. Even after numerous negotiations with both banks that stretched over a span of three years, he still could not get them to concede by retracting or reducing the amount on the accounts. Needless to say, when he heard about AKPK, he had all but lost hope. In a matter of days, AKPK negotiated with both the banks on his behalf. We also managed to secure Mr Ramon a 10-year tenure to pay off the loan. However, Mr Ramon, like many of our other clients, showed absolute determination in paying the loans, and paying it back fast. After a few short months he managed to come up with a lump sum payment to settle all the outstanding owed. He then again approached our counsellor for advice. After second negotiations with the banks, our counsellor was able to get Mr Ramon a further reduction on his outstanding. Mr Ramon settled with both the banks on the same day and now prudently manages his finances.

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Story 2 No one could have imagined that Mr Herman* would entangle himself in a bad case of debt. Successfully running and managing a computer repair shop, the luxury that came with owning his own private business afforded Mr Herman's wife a stay-at-home lifestyle as the mother to their oneyear-old son. It also helped Mr Herman take full care of his ageing mother. Mr Herman and his wife always managed their credit cards sensibly and continually honoured the repayments on their outstanding in full amounts. On top of that, Mr Herman also knew the importance of savings and kept aside a percentage of the income he made from his business. It was hard to say what exactly made him give up all his savings for an ailing friend in need. Other than seeing a friend face financial trouble, Mr Herman was somewhat confident in knowing that he would not need the money in the near future. Unfortunately, circumstances cannot always be controlled. Only months after handing his friend every cent he had ever saved, Mr Herman's business faced stiff competition by a bigger firm that decided to set up their operations close to his base. As business started dwindling, Mr Herman used his credit cards to fund the expenses of his ailing company. He figured that he needed to recoup his losses by injecting more investment. Besides, he thought he could always pay it off later when business got better. As time passed it seemed that the financial freedom he constantly dreamt about since the slowdown of his business was getting further out of reach. Mr Herman could not afford to make repayments on his credit cards from the little income he made through his business. To make matters worse, when creditors came knocking on his door, he realised that he could no longer afford to support his family and at the same time handle the repayments on his credit cards. The stress of being unable to meet his credit card repayments coupled with a meagre income caused many arguments within the household. Under tremendous pressure, it came as a relief when Mr Herman, through his friend, heard about AKPK's services. After negotiations with the respective banks, we managed to reduce the monthly debt repayment by almost 60%. We proposed a repayment plan that would not put too much pressure on Mr Herman's finances. Six months after being on the repayment plan, Mr Herman managed to come up with the balance of his outstanding after being paid back by his friend. Mr Herman is relieved now

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knowing that he has his finances under control. He is also more cautious with his money. "The debt I could not handle, it was like a dark financial cloud following me every day. Now that cloud is gone."

Story 3 Mr Charles*, a successful regional sales executive with two young children and a beautiful wife, always knew how to manage money well by living within his means. He always had credit cards and had been using them effectively for years. He was never in the habit of abusing or misusing his credit cards and always serviced his outstanding repayment promptly and in full. However, he never saved for a rainy day and that was what got him into a financial predicament in the first place. Mr Charles also supported his ageing father besides his own family. When his father needed money to cover a life-saving operation cost, Mr Charles stepped in and used his credit cards to fund his father's procedure. However, when notices from the creditors arrived, Mr Charles could not afford the repayments on the credit cards. Huge arguments that broke out between Mr Charles and his wife put tremendous strain on the family. The family was under incredible pressure, as they did not know how to deal with the creditors and was constantly worried if they would ever be able to put food on the table. Mr Charles found out about our credit counselling and debt management services and immediately contacted us for assistance. Working relentlessly with the various creditors involved, we managed to reduce Mr Charles's monthly debt repayment by 70%! Mr Charles enrolled into our debt management programme and abided by his repayment schedule. As Mr Charles was keen to fully settle all the outstanding on his credit cards, which was fairly substantial, we suggested that Mr Charles sell his apartment and move his family with his ailing father. Mr Charles took the advice, fully settled all his credit cards outstanding and even managed to save the balance in a high yield savings account. He is now relieved from debts, knowing that his finances are under control and his life is back on track.

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Story 4 A single mother with an eight-year-old son, Sandra* says her problems started about 10 years ago. She admits that she was proud then and naive, and wanted to show off, especially to her family, that she made a good living. She spent her money on almost anything: clothing, shoes, good and expensive food and lived like she was earning a good income. Of course, part of this was caused by her unhappy marriage. In 2005, with her marriage breaking down, Sandra resigned from her job as a personal assistant to a managing director of a public listed company to engage full time in multi-level marketing, thinking that she would fulfill her dream of achieving great wealth. But she was still spending like there was no tomorrow. She kept on spending without any control until she started receiving legal letters from the banks that had offered her credit cards. At that time, she was holding credit cards from five different banks with a credit limit of over RM70,000 - and she was that much in debt. Finding herself trapped in a financial crisis, Sandra tried to take the easy way out. She did not want to face the problem and tried to run away from the issue. In fact, she tried to kill herself once and ended up in hospital. Sandra did not know about AKPK until her younger sister told her to visit us, but at that time she had almost given up on her life. With our help, Sandra has been paying her monthly repayments promptly for almost two years now. She has learned to budget her spending and even begun to save some money. She admits that she has struggled to build back her confidence and just keep going. Sandra's advice for those who find themselves sinking by the weight of their debts is to face the problem and seek help from AKPK instead of going to loan sharks. Nowadays, Sandra only spends what she can afford and no longer buys unnecessary things. Now employed in the sales and marketing line, she tries to save her commission earned for rainy days. Although it is not much, at least she has some savings. She also invests part of her Employee Provident Fund (EPF) in a unit trust. She advises to achieve balance in our lives: exercise everyday, eat right and occupy ourselves with jobs that takes up most of our time so that we do not have any chance to spend money needlessly. She also believes that if you are happy, it is easier to control your spending.

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Story 5 When En Ahmad* was involved in a car accident, he lost his hearing apart from losing his job. Being a security officer for the past 15 years at a local government agency, En Ahmad was only paid a simple salary of RM2,600 a month, which was insufficient for his household expenditures. Due to the accident, he was forced into resignation as his hearing disability greatly affected his job. En Ahmad was simply devastated when this happened; he began to worry about keeping up with his monthly expenditures. His housing loan monthly commitment alone was RM1000. On top of that, he also had monthly commitments on his hire purchase and personal loans. En Ahmad, only 48 years old and had two school going children and a wife to care for, was extremely worried about his financial security. He did not know how he would secure any other employment with his limited experience and education. On top of that, his hearing impairment was a setback for many blue-collar jobs. Distraught, En Ahmad approached his previous employer in the hope that they could ease his predicament. His previous employers then encouraged En Ahmad to get an official supporting letter from a government hospital verifying his disability. With this in hand, En Ahmad's previous employers were able to approach PERKESO to secure a monthly "Pencen Ilat" of RM1,400, a disability pension entitlement because of his hearing impairment. Securing the disability pension alleviated En. Ahmad's worries a little; however, he was still not confident about his ability to manage his monthly loan commitment to the banks. He shared his woes with his brother who stepped in and promised En Ahmad an extra RM200 a month to help with the bills. His brother also suggested him to speak with AKPK to seek advice on alleviating his monthly commitments to his loans. AKPK tackled the issue by first looking at his outstanding housing loan. En Ahmad was advised to withdraw from Account 2 of his Employee Provident Fund (EPF) to fully settle his housing loan. En Ahmad, unaware that he could use his EPF money for this purpose, was elated that the house would be finally paid off fully. Next was the hire purchase monthly commitment of RM700, an amount too high for him to manage. With AKPK's help, the repayment tenure of the loan increased, which in turn brought down En Ahmad's monthly hire purchase repayment commitment by half the original amount.

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With the two main monthly repayments taken care of, AKPK then worked on restructuring his personal loan repayments from RM350 a month to RM200. By law, the "Pencen Ilat" cannot be used to make a repayment, and restructuring it to RM200 allows En Ahmad's brother to make the personal loan payments on his behalf. AKPK's counsellor managed to settle En Ahmad's predicament and was able to work with him in sign language to provide the information and help he needed. With the help of AKPK, En Ahmad can now breathe a sigh of relief and look forward to financial freedom.

Story 6 Kamala*, a single mother aged 47 years old came to the agency in tears; she was at the brink of losing her only house and was simply 'blank' about the future of her three kids who needed her support financially. Five years ago, Kamala was left widowed when her husband of 15 years of marriage died of a sudden heart attack. Since then, life took a turn for the worse for Kamala and her children and things were never quite rosy again. Kamala toiled long and hard hours at a manufacturing factory earning slightly below RM2,000. The money she made was just barely enough to make ends meet. Kamala recalled how she and her three kids had not bought clothing since her husband's death, as they simply could not afford it. Kamala earned little, but she never had spending habits and always managed her finances well. She never imagined that she would be on the verge of losing her shelter, the one thing her family needed the most. A few months ago life took another blow at Kamala when the manufacturing company she worked for ran into financial difficulties and shut down without paying any compensation to their workers. Kamala was soon left without a job and had nowhere to turn to. The only relatives she had could not lend her a helping hand due to their own problems. Kamala went on for months working hard in search of a job that would enable her to earn a decent income. Her search did not lead her anywhere; she was left without a job and soon began defaulting on her loan repayments. Kamala could not seem to find a job that nearly paid as much. Devastated, Kamala finally had no choice but to be employed as a cleaner for a quarter of the income she previously earned. He son who had just finished high school went in search for a job and secured one that paid him RM1,000 per month. The combined household income of RM1,500 relieved Kamala somewhat, although the amount was very little.

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Just when she was about to get her life back to normality, Kamala received news about the auction of her residence. She was shocked that the auction date has been set. To aggravate matters, Kamala did not know where to turn to get the money she needed to stop the auction. Troubled, she consulted a friend who recommended her to seek AKPK's advice. Kamala calmed down when our counselors told her that they would negotiate with the banking institution involved and make a minimal upfront payment from her EPF account towards her home. Within a day the agency negotiated with the bank and managed to stop the auction. Her housing loan amount was also restructured to a more affordable repayment plan. Elated with the outcome, Kamala thanked the agency profusely as she was ecstatic to get the roof back on her head. Although Kamala realised that she would have to work hard to keep up with the payments, she is confident that with AKPK's guidance on managing her finances, she is on the route to getting her life back on track.

Story 7 Recently divorced, with a five-year-old and two ailing parents to care for, Suzie* was struggling to make ends meet. Throughout her shortlived marriage, Suzie opted to be a homemaker, sacrificing her career to tend to her family. She never once thought that Alex, her husband of 6 years, would change from the caring man he once was to a man who would risk everything for his gambling habit. Gambling is a gravely ill habit, but gambling money that you do not have is even worse. When Alex could no longer afford to pay his swelling gambling debts, he turned to a loan shark for help. Consequently, he struggled paying the loan shark and almost always defaulted on the scheduled payments. As a result of his careless actions, the family was intimidated and continuously received unwanted violent visits from the loan shark. Divorce was the last thing Suzie wanted; however, when threats from the loan shark escalated, it seemed to be the only solution to guarantee the safety of her only child and her ageing parents. Suzie always knew that walking away from the marriage would never be easy. What she did not foresee was how tough it would be being the sole breadwinner of the family. She always thought Alex would chip in even after the divorce. To her surprise, Alex washed his hands of all the responsibilities and did not seem to care about their daughter. Getting a decent job was not easy as she barely graduated from high school. Suzie had to work numerous dead end jobs before she finally

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found employment as a secretary at a local government agency. Fortunately, her salary of RM2,000 was more than enough to pay the bills. Just as things began to settle down, Suzie received a bankruptcy notice. Her ex-husband took a loan under her name for a car purchase when they got married and defaulted on the payments a couple of years back. Suzie was dejected and shocked at her husband's reckless behavior. The initial loan amount of RM50,000 ballooned to almost RM250,000 in those short years. To make matters worse, Suzie realised that the said car was in the possession of a loan shark as part of the payment for her husband's debt. This further made the car untraceable and repossession by the bank almost impossible. Distraught, Suzie took advice from her close friends and phoned AKPK for help. After meeting Suzie and understanding her predicament, AKPK issued a proposal to the bank concerned to accept a full and final settlement amount of RM50,000 to be paid at 0% interest via monthly installments of RM500. The bank immediately replied to the proposal, fully agreeing with the settlement plan. The acceptance from the bank which came two weeks just before Suzie's court date provided much needed relief! She was glad that the agency was able to act swiftly and save her from bankruptcy. Though she will have to keep up with her payments from here on, Suzie felt that with seeking AKPK's assistance, she was one step closer to complete financial freedom. She now looks forward to better days with her family.

Story 8 When En. Rosman* retired from the postal service in 2005, he had much to look forward to. His family could not wait for his retirement as they had wanted to spend time with him. En Rosman had a comfortable retirement plan. Free from debt and equipped with over RM60,000 in his EPF, En Rosman was looking forward to a hopeful future. En Rosman felt that as a responsible father, he must secure a better future for his children by providing better education for them. Unskilled, retired but yet very determined, En Rosman sought the only way he thought he could make money, a get-rich-quick scheme in the guise of multilevel marketing. At first it seemed like the investment would pay off - En Rosman relaxed and felt assured that his dreams would come true. He started spending more, certain that a better lifestyle is in store for him and his family. En Rosman convinced himself that after all the years of hard work, he earned the right to spend. He felt his family deserved material things. He knew they deserved to be happy. Soon enough however, like

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every other get-rich-quick schemes, En Rosman lost all his money when the company disappeared. All his EPF savings was gone with the company in the blink of an eye. His loss prompted him to seek easy credit to pay his bills and feed his family. When he ran up his credit card bills, he simply had no choice. Without a job and insufficient income, En Rosman had carelessly used his credit cards to sustain his family's wellbeing. To further support his family En Rosman started giving tuition classes to the neighborhood children while his wife provided babysitting services in their home. However, the temptation of exploiting the credit cards was far too great. His desire to get rich quick once again prevailed when En Rosman paid heavy subscription fees that he could not afford, hopeful to win contests and sweepstakes where the chances of winning was a million to one. Without realising, En Rosman was suddenly more then RM43,000 in debt and was far from resolving it. When En Rosman lost all control of his finances and was constantly harrassed by creditors, he decided that it was time to seek AKPK's help. AKPK managed to liaise with the banks to lower his interest charges on all 4 credit cards and further restructure his monthly installment to only RM500 a month for 3 years. The payments after that would increase by RM200 for another 5 years. En Rosman was also advised by the agency to give up his car to the financier and instead use his motorcycle as a mode of transportation. This would enable him to cut down monthly expenditures for the car while freeing up cash for household expenditures. The AKPK plan was something En Rosman could handle. Due to the help and attention given by AKPK towards En Rosman's finances, he could finally live a more financially comfortable life with his family, and far from the threatening calls of creditors.

Story 9 Pn Rokiah* and her husband of 20 years decided in the 90s that while the economy was booming, they ought to open a share trading account in the bank her husband works for. Pn Rokiah held a steady job while her husband had just been promoted to a senior position as a remisier. The economic high bode well for the family. The couple in their mid 40s had been planning on saving up for their 3 children's tertiary education. Pn Rokiah and her husband were already planning on enrolling their eldest daughter to study medicine at a well-renowned and distinguished university in Dublin. The couple would not have

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been able to afford such expenses were it not for the share trading account which gifted the couple with more than they would normally earn. For the family of 5 the future, much like the present, looked prosperous. Though equipped with the ability to afford luxuries, they still spent within their means and understood the importance of being frugal. Just as things were looking bright for Pn Rokiah and her family, circumstances took an unfortunate twist in 1996. Her husband's service as a remisier in the bank was terminated due to a massive shortfall arising from trading losses incurred under his client's portfolio. To add insult to injury, her husband was consequently adjudged a bankrupt in the late 90's - when the financial crisis was at its worst in Asia. Calling the period dark would be an understatement. The breadwinner was out of a job and could not secure a steady well-paying occupation due to his bankrupt status. Finance became the crux of arguments as both adults tried to make ends meet. The children were not better off; lodged between unsettled parents and the possibility of not having a bright university education, they worried about their uncertain future while trying to mitigate problems in the present. The bank continued their legal action against Pn Rokiah and her husband to recover losses from the trading account she shared with her husband. As with most banks, it is the practice that upfront payment is imposed as a penalty for losses incurred in trading accounts. This made matters worse for the couple as they were unable to come up with the required upfront payment, resulting in them breaching settlement proposals with the bank. Pn Rokiah and her husband relentlessly negotiated with the bank for 12 arduous years before seeking help from AKPK in June 2008. Initially, the bank was adamant about standing by their decision to advance with imposing the upfront payment. The AKPK agent had to appeal at length and explain the repercussions of imposing the penalty on both Pn Rokiah and her husband. It was pointed out that the couple had a positive cash flow to repay the debts on installment basis. The couple felt relieved when the bank's penalty proceedings came to a halt. The bank thus accepted AKPK's proposal of 50% waivers on monthly installments. The discounted outstanding of RM164,244 was to be serviced via monthly installments of RM1,500 without interest. This will take approximately 9 years to settle. It may be awhile before the couple settles their debt, but with follow up counseling on financial planning organised by AKPK, the couple will be able to gradually build their lives and simultaneously service the monthly installments at a comfortable pace without losing any sleep over finances.

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Story 10 Su Ling* was in her mid-30s, had progressed fairly well up the ranks in a marketing firm in downtown KL and was living modestly. She had big dreams but never let work get in the way of her family. Su Ling is forever indebted to her parents for all that they had taught her in life and as such, her main priority was always to look after her ageing parents, especially now that she can afford to do so. With her life in order and her parents being looked after well due to her high paycheque, financial difficulty was something Su Ling had not expected. Tragedy first struck when Su Ling's mother was diagnosed with kidney failure. As her mother's condition worsened, dialysis treatment was a necessity. Desperate for any form of monetary assistance, she looked into different avenues to fund her mother's medical treatment. However, all her efforts were met with a dead end. She was unable to attain subsidies neither from the government nor from any NGOs. Hospital and medical bills became hers to bear as her father was retired and had very little saved up as he approached his golden years. Dialysis and hormone therapy alone amounted to RM6,000 monthly. Due to her mother's surgery expenses the bulk of her salary went to financing medical bills. Five years into her mom's treatment, Su Ling's father was then diagnosed with lung cancer. She could not believe the situation she was in. It felt as though the world around her had crumbled. She didn't know who to turn to, and for the first time in her life, she felt helpless. She knew that the cost of medical bills would potentially double as chemotherapy was needed to battle the cancer. Within months, medical bills for both her parents soared, resulting in a tough financial strain on Su Ling. She was forced to work odd jobs over the weekends just to earn a little extra income. Even then she was just able to make ends meet and had no extra money for other expenses. Su Ling was aware of her inability to maintain paying for her parent's medical expenses much longer with the pay she was getting. All that was incomparable to the fact that Su Ling was staring directly at the possibility of losing the two most important people in her life. Unable to support herself and finance both her parents' medical bills with her current earnings, she found herself in dire need of financial assistance. Su Ling took the easy way out and turned to the number one cause of debt - credit cards. She applied for several cards in order to ease the strain, knowing full well the consequences of her actions and the amount of debt she would be in. She had no choice as she had to find a way to finance both her parents' medical bills.

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The condition of her parents slowly deteriorated and she lost both parents in the same year. The loss left Su Ling devastated. She could not believe that all her efforts met with such a depressing end. On top of that, Su Ling was left with the task of servicing the debt she had accumulated. Though help was handed to her by her family members, it did not suffice. Su Ling therefore sought the counsel of AKPK. The AKPK agent negotiated with the bank for some interest waivers and penalty interest. The outstanding balance totaling RM500,000 on her 5 credit cards were restructured in such a way that it allowed Su Ling a minimal monthly payment of RM300 to service the debt with interest waived. The negotiations also resulted in the bank lowering Su Ling's monthly payments by almost 50%. Su Ling was thankful that finally, after the last 10 years of financial stress, she was able to relax and get on with her life.

Story 11 Encik Leman* has always been both a caring father and a loving husband. Eventhough his meagre income of RM1,000 working as a general clerk was barely enough to provide basic necessities for him and his family, he always ensured that they were happy. The family never complained of their less-than-perfect lives or was ever unhappy about their social status. They lived within their means and just had enough. Unfortunately, destiny took a turn for the worst when his wife of 10 years, Pn Hamidah, was diagnosed with acute kidney dysfunction, diabetes and hypertension. Their ill-fated luck caught the family by surprise as their once simple lives were shattered with no clear definition of what the future held. Troubled by his wife's medical condition, Encik Leman had to ensure that her health was number one priority, especially for the sake of his young children. As medical care was pressing and extremely expensive, Encik Leman had to devise a way to obtain credit to ensure his wife's recovery. Equipped with the credit cards in his pocket, Encik Leman began a rough journey of heavy borrowing and serious debts, all to retrieve that uncomplicated life he once knew. As Puan Hamidah's disease progressed further, Encik Leman became more desperate, taking up personal loans amounting to RM31,000 to finance his wife's medical and traditional methods of healing. This trend continued for almost a year when, by the grace of God, the government

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intervened by providing full medical support to Pn Hamidah for all of her three severe medical conditions. However, it was a bit too late for Encik Leman to reverse his heavy debts. Encik Leman eventually visited AKPK. After evaluating Encik Leman's debts, AKPK agreed to restructure the outstanding balance for a length of 8 years on all credit cards. Aside from that, as Encik Leman's expenses was mainly geared towards medical needs, the agency managed to lower the yearly interest on all credit cards, bringing it down to only 6% annually, much lower then the usual 18%. AKPK also took into account Encik Leman's less-than-extravagant income and his sizeable family, hence granting him a low repayment of RM200 a month. This was done to meet his capabilities of paying off the debt, without straining the family's spending. In this way, the family has attained its much needed break and Encik Leman is on his way to settling his debts within his paying capacity.

Story 12 Pn Rubiah* is a single mother of 4 children. One rainy Sunday, her husband packed his bags and left her and their young kids as an easy way out to search for the single life he never quite left behind. Pn Rubiah had been bringing up her kids single-handedly since that cold sombre morning. She vowed that she would make sure none of her kids ever felt the loss of their father. Pn Rubiah worked hard to give them everything they needed. She remembers how tough it was being a woman without any education trying desperately to feed four tiny mouths. Pn. Rubiah's salary as a clerk is meagre, yet she made sure her children got through their tertiary education so that they could stand on their own two feet. She always ensured that they had enough to eat and plenty of clean clothes to wear. Pn Rubiah often spent gruelling hours working just to make ends meet. Pn Rubiah had never fallen into the clutches of debt through the years of raising her kids. All her children grew up well and had jobs they could depend on. When her daughter gave birth to a bouncing baby boy, she thought she finally had something to look forward to. After all those long years toiling hard at work, she could not wait to retire and spend time with her grandson. Unfortunately Pn. Rukiah's grandson's health quickly deteriorated. What she heard from the doctors

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surprised her; she never could have imagined that her grandson needed countless surgeries for his tiny failing heart. Pn Rubiah and her family spent many nights taking care of her grandson. They ensured he received the best medical care possible so that he could survive and have a chance to lead a normal life. When both her daughter and her son-in-law could not afford the cost of their son's acute medical condition, Pn Rubiah stepped in to take responsibility for her grandson's failing health. It was hard for Pn Rubiah to gather enough money for all her grandson's medical bills. She did not know who to turn to for funding and decided to first utilise an early EPF withdrawal. When the money ran out, she opted to use her credit cards to settle the impending medical bills. She thought to herself that credit cards would be the best way for her to pay the bills. After all, she was almost positive that the amount would be something she could handle. However, without realising, the medical bills piled up unexpectedly. Pn Rubiah could not afford to the unbearable amount of bills and eventually maxed out her credit cards to foot the expenses. Soon after, she began defaulting on her credit cards and even fell behind on her car's monthly payments. Although her grandson's condition improved due to the surgeries, Pn Rubiah's financial health was in dire need of attention. She was RM80,000 in debt and could not see a way out. When her car was repossessed and she was harassed with a barrage of legal threats from creditors, she was determined to seek help. She had heard about AKPK's services through a friend and decided to approach the agency to solve her predicament. Through AKPK's intervention, Pn Rubiah managed to gain a 56% waiver on her initial debt of RM80,000 through moratoriums served to her creditors from AKPK on her behalf. As she was reaching retirement age in the upcoming year, the agency advised her to fully settle her debts with money from her EPF account. In the meantime, the agency restructured her monthly payments at a comfortable RM400 monthly for the following 2 years. Pn Rubiah paid the first installment almost immediately. AKPK then counselled her on how to manage her finances better in times of need. This is to ensure that Pn Rubiah would not fall into the clutches of debt again. Due to Pn Rubiah's immediate assessment on her financial situation, she can now look forward to a debt-free retirement.

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Story 13 En Bahar* and his wife, Pn Mizah led a very comfortable life. They were doing extremely well as sales associates for a well-known product. Their success was so impressive that they were one of the biggest suppliers for the product in the East Coast. Business was booming and Pn Mizah seized the opportunity to diversify her investments. She purchased a string of properties in various states in the East Coast in addition to her family's robust earnings and investments. The newfound wealth brought on much vanity to the couple. They felt the need to purchase four cars, two of which were luxury automobiles, all in attempt to impress both their downlines and customers. Although the luxury cars were extremely expensive to maintain, both En Bahar and Pn Mizah were adamant to hold onto those cars. The couple used all their savings on luxury goods that they did not have anything left to fund their business. En Bahar and Pn Mizah then tried to secure business loans from several banks but failed miserably. No one wanted to provide any financing to the couple, not with their extravagant lifestyle and spendthrift ways. Dejected, the couple turned to 12 different credit cards to finance their business. They were not illeducated; they knew the effects of interest on credit cards but they simply did not have any other way to fund their business. The couple had no other choice. Pn Mizah could not let go of what they worked so hard for. The business is their only source of income; they could not give it up and tried hard to keep it alive with the help of high interest credit cards. The couple realised that the profit margin on their business was shrinking due to the high payments on their credit cards. They were worried about losing customers as the lower revenue forced them to stock fewer products. They also could not deliver and fulfill their customers' needs and was losing out to competitors. The couple was desperate to save the business and secure their financial future and they were drowning in debt of over RM1,000,000. Asides from that, En Bahar and Pn Mizah were tired of spending all of their revenue on high credit card interest charges. Their frustration towards their huge debt prompted them to seek the help of AKPK. AKPK advised the couple to sell some of their properties as it was negatively impacting the business. They were also asked to find buyers for both their luxury cars to eliminate excessive spending on both vehicles. Aside from that, they were strongly urged to find a business loan after eliminating huge expenses on property and car loans. The business loan would help lower the couple's dependency on credit cards, further eliminating their high interest payments and ultimately increasing profit for the business. AKPK also restructured all 12 credit cards and was able to lower

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their monthly payments by almost 50%. En Bahar and Pn Mizah were thankful for the sound financial advice from AKPK. They can now concentrate on increasing profit without worrying about the illeffects of credit cards.

Story 14 Kamarul* was dejected once again. The feeling of worthlessness did not seem to fade away. It did not make sense to Kamarul that within a span of 6 years, he had lost 6 jobs. It was hard to comprehend such fate. Kamarul could not believe that on average he was losing one job a year and wondered if others out there were stuck with his unfortunate luck. Kamarul's ill-fated luck 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. When Kamarul thought about how the only job he really managed to secure paid RM600 on a good month, he began to wonder how he supported his family and ailing mother all these years. Kamarul did seek a lot of financial support from his relatives and friends and distinctively remembers how he hated pleading for money. Unfortunately, he did not have any choice. Oftentimes the help was not enough, and when he finally got tired of begging, Kamarul used credit cards as a means for more buying power. The cards gave him so much convenience. With the cards Kamarul was able to buy almost anything he wanted. They gave him security. They provided food on his plate, but most of all, he could stop asking family and friends for petty ringgit. The bank kept increasing his credit limit and that was good news to him. His original credit limit of RM20,000 from 6 different cards ballooned into a whopping sum of RM245,000 over the years. He was under the false impression that all he had to do was pay the minimum payments on the cards while the balance could be paid at a later date. How was Kamarul supposed to realise that the interest accumulated over time when he was too busy blowing his credit, spending on glitzy items he and his family never had.

Kamarul was tired of being in debt and harrassed by creditors. He was also tired of moving to 3 different houses in 2 short years all in attempt to avoid visits from debt collectors. Kamarul was

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worn out and simply wanted to be a better provider for his family. He sought harder for a wellpaying career and finally secured a job with a stable income. Kamarul had a baby on the way and needed to build his life again for the sake of his unborn child. However, he had too much debt to secure a happy future. It was then that he decided to seek the help of AKPK. AKPK put up proposals to all 6 banks for full waivers on penalty interest and other charges amounting to RM218,109. That amounted to a 90% waiver on the total outstanding debt of RM244,738; a very bold move by the agency. The offer was accepted by all 6 banks without any objection. The balance of the debt was the principal that amounted to RM26,629. AKPK also negotiated the monthly installments to only RM700, a figure he could handle. Kamarul could not believe AKPK managed to do so much for his overbearing debts. He was amazed at how much relief the agency provided him. Getting out of debt was something Kamarul never thought was possible. He could now build his dreams without worrying about constant creditor harrassments.

Story 15 Mr Selvan*, a 45-year-old man, lived a blessed life in his own property with his beloved wife and 4 children. He had everything in control for many years. All was well until Mrs Selvan was diagnosed with a gynaecological problem. As a result, she had to give up her full-time job based on her doctor's advice. This prompted Mr Selvan to bear his entire family's expenses on his own. His situation worsened after his wife was further diagnosed with a psychological disorder. Out of love and care for her, he used all of his savings and monthly salaries at various places to treat her medically, even traditionally, but nothing helped. Seeing that her condition did not improve, Mrs Selvan tried to commit suicide. Afraid for her safety, Mr Selvan decided that she should be taken care of by his other family members. However, that too required money. Over time, Mr Selvan's total debt touched an estimate RM65,500 as a consequence. He had defaulted on his housing loan repayments while his income became insufficient to meet his family's

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daily expenses. Taking up a part-time job seemed inevitable in order to survive and cater to his family commitments. Due to his huge debt default with the bank, Mr Selvan was constantly hounded by calls and legal letters. His failure to pay his housing loan instalments was threatened with legal action. Helplessly distressed, he approached Agensi Kaunseling dan Pengurusan Kredit (AKPK). With AKPK's Debt Management Programme (DMP), the bank eventually agreed to revise Mr Selvan's full and final settlement amount. This means Mr Selvan will continue to pay for his housing loan through a lower instalment figure until his debt clears.

Story 16 Hassan* had a house which was bought by his father while he was still in college. The house was registered under Hassan's name in order to be entitled for a longer repayment period and lower repayment amount. However, a few years later Hassan's father passed away. He then lost all capacity to continue servicing the loan as he was still studying. He defaulted on the loan and as a result, the financial institution pursued legal action against him as a warning of foreclosure of the property. After graduation, Hassan got a stable and permanent job as a project engineer with a monthly salary of RM3,000. However, his net disposable income was insufficient for servicing the housing facility which was worth RM1,800 monthly. On top of that, he was the sole breadwinner of the family and had two dependents, namely his mother who was sickly and his schoolgoing sister. Due to these factors, Hassan decided to dispose of the property and rent a smaller house instead with his mother and sister. By then, he had managed to secure a buyer who was willing to purchase the property at RM290,000. However, after deducting the legal costs and real estate agent's commission, the remainder of the sales proceeds was only RM280,000. This amount was insufficient to fully settle the outstanding selling price of the Islamic housing finance facility amounting to RM310,000.

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As this issue has affected his repayment track record in the Central Credit Reference Information System (CCRIS), Hassan was unable to get any financing facility to settle the RM30,000 shortage. Therefore, he wasted no time in seeking AKPK's help. Upon enrolling in AKPK's Debt Management Programme (DMP), Hassan's financial burden has been reduced. This means he can now afford to settle his shortfall amount of RM30,000 via monthly installments and further ease the process of selling his house.

Story 17 A teller at a bank, *Salim earns a monthly salary of RM1800. A 28-year-old single man living in a small town in Pahang, he has a fully paid car. It seems Salim lived a fairly comfortable life without financial woes. However, he came to AKPK because he was bogged down by credit card debt. Salims father passed away 3 years ago and since then, he has been the sole breadwinner of his family. He has 2 siblings who are still studying and a mother who is a full-time housewife. Fortunately, Salims family was financially covered because of his late fathers EPF savings and his siblings government study loans. Nevertheless, things changed a couple of years back when he started to use his first credit card. The credit card was used for fueling up his car and shopping. When he received his statements each month, he only paid the 5% minimum shown in his statements. Prior to using his credit card, his existing expenditure was enough for himself after deducting RM400 worth of monthly family expenses. However later on, he started to feel the pressure of not having enough to spend. Occasionally, some of his debts would be overdue for up to 2 months. Eventually this alarmed him, seeing that from owning 1 card he now owned 6! Furthermore, the outstanding kept increasing despite him paying the minimum almost each month. As a result, Salim found it hard to sleep at night. Upon finding out about AKPK from the brochures in the banking hall, he took a days leave to travel 1.5km to our branch to seek financial advice.

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Our counsellor was encouraging towards Salim in saying that it is good that he realised his mistakes while still young and single. Salim regretted the negligence on his part. With the counselling received, Salim is now on track to settling his credit card debt. He now understands fully the consequences of compound interest and paying only the minimum repayment monthly. He also purchased AKPKs Celik Wang (Money Sense) book as a guide for him to manage his finances prudently.

Story 18 *Jasmin is an officer with Bank X. Accompanied by her father, Mr Thong, her visit to AKPK was a distressing one. Jasmin seemed tense, not only because of the size of her debt, but also due to her current situation of being on the brink of bankruptcy. What brought her to AKPK was a hearing filed by Bank Y regarding a creditors petition on that very same week. Jasmins debt problems began with Mr Thongs gung-ho attitude towards real estate speculation. After initial success in acquiring and reselling property at a significant profit, Mr Thong decided to be more adventurous. In order to gain Bumiputera discounts, he had acted through his daughter and son-in-law, a Bumiputera, by having them apply as joint borrowers for all the bank loans necessary to cover his business escapades. Then came the 1997 financial crisis which caused Mr Thong to be stuck with several expensive pieces of property. There was a shortage of buyers as a result of the economy crisis. All three properties financed by 3 different banks were auctioned off respectively with huge losses accumulated. Due to the inability to pay, civil action was taken against Jasmin and her husband as negotiations with the banks were not forthcoming. Jasmins husband was declared bankrupt by one of the banks involved in 2005 while bankruptcy proceedings against Jasmin continued. Bank X, Jasmins employer, eventually got wind of Jasmins state of affairs and warned her that should she be declared a bankrupt, she would be retrenched in accordance with company policy. Jasmin informed us that her husband at that time was only earning less than RM1,000 from direct selling. Upon AKPKs advice, Jasmin attended the creditors petition hearing and had successfully pleaded with the court to postpone the hearing. AKPK helped propose to the banks to withhold their bankruptcy actions. We also proposed restructured installment payments promised to be paid by

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Jasmin, to which the banks agreed. At that point, Jasmin was saved not only from bankruptcy but also from losing her much-needed income from employment.

Story 19 Encik Seman* is a 58-year-old FELDA settler with 10 children who earns a monthly income of only RM1,200. In 2003 he charged to the bank his oil palm land worth RM90,000 for a personal loan worth RM20,000. Over time, he ended up defaulting on his loan repayment. All along, Encik Seman thought the bank would not take any action against him because it held his land worth RM90,000 while he only owed a much lesser amount of RM20,000. The bank then proceeded to take action through foreclosure. By this time, Encik Seman encountered more family problems. His grandchild was diagnosed with leukemia, and whatever money he could spare he had used for treating his grandchild but to no avail. To add salt to the wound, his son was involved in a severe motor accident while his wife suffered from a stroke and has been bedridden since. A large portion of his income was spent on his wifes healthcare. Back to his financial matters, the bank had granted Encik Seman three years to resolve the loan issue. Furthermore, they proceeded with foreclosure of the land with a fixed auction date. In order to withdraw the auction, the bank requested Encik Seman to pay RM10,000. His daughter tried to raise the money by requesting for a personal loan but unfortunately she was not eligible for it. Encik Seman felt like he was fighting a losing battle with regards to his property, which was the livelihood of his entire family. People were waiting to bid for his land while his children barely had enough income to support their respective families. He regretted not servicing the loan as he was ignorant of the implications arising from defaulting his monthly payments. Hearing of AKPK, Encik Seman wasted no time in contacting us for help. With AKPKs Debt Management Programme (DMP), Encik Seman received his chance at saving his land. AKPK helped appeal to Encik Semans financier by negotiating a payment scheme he could afford. To start off, Encik Seman had come up with RM4,000 for the bank to pay off the land office in order to postpone the auction. Thereafter, a comfortable monthly instalment of RM400 was arranged to be paid by Encik Seman until the full settlement of the loan. This way, Encik Seman was safely on his way to salvaging his livelihood.

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Story 20 Pn Salmah*, a bank clerk, works diligently around the clock to bring up her three children aged 9-15 years. Her husband had since died of heart attack in 1993. At this point in time, she had a truckload of debt stemming from her credit cards and soft loans obtained personally from friends. Pn Salmah eventually accepted a voluntary separation scheme (VSS), a scheme where as an employee, she was given the option to resign voluntarily by receiving fair compensation. The VSS compensation however could not cover all of her debts. Worse still, her eldest daughter, Shima* had decided to elope with a foreign worker, only to return a year and a half later. She had come back with a child in her broken marriage. Shima was out of touch with Pn Salmah for so long due to her husbands threats to harm her family if she had tried to contact them. Over time, the situation resolved as Shima and her husband stayed on with Pn Salmah while another grandchild was born. However, it did not ease Pn Salmahs finances as her son-in-law hardly contributed financially to the family. Later on in 2008, tragedy befell Pn Salmah as Shima had died in a car crash on the way back from work. It was not long before her son-in-law took off and left the family, being the irresponsible man that he was. Faced with raising her grandchildren all by herself on top of her existing financial debts, Pn Salmah was left with no choice but to continue working to put food on the table for her family. Do you know, Pn Salmah is now one of the few female taxi drivers in Kuala Lumpur. When she began working, she left her grandchildren, then aged 3 and 5, to the care of a babysitter for RM300 a month. She arranged her driving times in a way where she could pop in to see her grandchildren in between her schedule as she missed them dearly. Blessed with another pair of grandchildren from her other daughter, Pn Salmah also shouldered the responsibility of bringing them up as their father was in a drug rehabilitation centre. Her endless love for her grandchildren saw her working hard to make sure they had adequate care. However, burdened by her debts, her earnings were barely enough. Eventually, hearing about AKPK, she decided to step up to the challenge by improving her finances through the help of our counsellors. As a result of making the effort to approach AKPK, Pn Salmah managed to have her debts revised to a fixed monthly payment of RM550 a month until her debts cleared. This way, Pn Salmah had a little extra to spend on bringing up her grandchildren and getting on with her daily life.

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Story 21 Steven* is a 45 year old unemployed man who had a stable job with a fast food chain for many years of his life. Life was rosy with his stable income. All was well and good until about a decade ago. One fateful day, Steven found out that a serious illness had befallen him. Seeing that the illness was fatal over time, he was asked to leave his employment as he was no longer fit for work. Ever since then, he had been surviving on PERKESOs Pencen Ilat, an invalidity pension. Life had taken a toll on him as his illness deteriorated over time. In the end, he found himself unable to work and was therefore put out of his job. As extensive medical treatment had to be sought, his pension from PERKESO became insufficient to support his expenses and medical costs. Since then, he began using his credit cards to cover his medical bills. Steven tried to reduce his medical costs by going for treatments in a government hospital. However, that alone was not enough to cover his cost of living as he had racked up credit card debt amounting to RM55,000. But then, what bothered him most and continued to linger in his mind was his five-figure debt as a result of his unpaid credit cards and persistent calls from the banks requesting for payment. After living in the dark for some time with regards to his finances, Steven decided to show up at AKPK. The counselling sessions with his appointed AKPK counsellor and enrolling into AKPKs Debt Management Programme proved to be effective for him. On top of that, his kind sister who was stricken by his plight agreed to contribute an amount she could afford - about RM250 a month to help Steven cover his expenses. With AKPKs help, Steven is now able to manage his credit card payments slowly but surely as an effort towards his financial freedom. *The names specified in these stories have been changed to protect the identities of the individuals involved. These success stories are meant to merely provide information on AKPK's services and lessons on money management.

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Story 22 Happily married with three children, Roslan* is a dedicated husband and father who works as a manager in an electronics firm. As the sole breadwinner of the family, Roslans income was sufficient to bear all household expenses and loan commitments. Life was generally rosy for Roslan and his family. About two years ago, Roslans sister-in-law was diagnosed with life-threatening cancer. As she was single and could not afford the high medical costs, Roslan had to chip in to using his savings and credit cards in an attempt to save her life. It was during this time that he started to default on his housing loan payments as he could not afford it considering his sister-in-laws condition. That meant housing loan arrears of close to a year. On top of that, he also had borrowings in the form of credit cards, personal loans and a hire purchase loan. Things could not get any worse for his finances. A year later, Roslans father-in-law was diagnosed with stroke and that caused him to be bedridden with his mother-in-law having to take care of him. This meant that Roslan had to bear his father-in-laws high medical cost as well. Having to cater to his familys needs together with the dire medical issues of both his wifes father and sister, this dutiful and loving husband did what he had to do. Not long after, his sister-in-law succumbed to cancer. Despite all the money spent in trying to cure her, who could fight with fate? Nevertheless, life had to go on and Roslan had no choice but to focus on fixing his financial issues or risk losing his home. He knew it would not be long before it was too late. Being aware and taking the step forward by visiting AKPK did help in a big way. Here, his appointed counsellor managed to restructure all his other loans as well in order for Roslan to be able to pay and settle them without compromising his familys needs. This goes to show that sometimes we cannot help the circumstances that are beyond our control. But with AKPKs help, Roslans financial predicament was eased and hope was there again for him to salvage his finances for the future of his family.

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Story 23 A dire financial predicament can happen to anyone. Even if one has struck it big as a millionaire, unexpected circumstances can cause a turn for the worse. As a partner of a well-established firm and an owner of a swanky Mercedes Benz, Bens* approach to money was typically no risk, no gain. Ben had acquired all the Cs with his fledging career: car, condo, cash, credit cards and a cute girlfriend. Life was good and no doubt, Ben worked hard for his success. At one point in time, the Chinese market experienced a surge, thus becoming the new economic powerhouse. This became a lucrative business opportunity for many and just like every other business-savvy entrepreneur, Ben, the high-flying risk taker, decided to step in to see what he could get out if it. Influenced by market sentiments and wanting a piece of Chinas economic pie, Ben leapt without hesitation by setting up shop there in 2008. However, investing in that foreign market did not augur well for him. Not long after, his business venture began suffering a significant amount of losses. Ben began facing huge financial trouble when his new consultancy business did not materialise as how it was intended. The losses he incurred was massive, amounting to almost seven figures. The lack of profit had prompted Ben to pump in additional investment. Using all of his credit cards and obtaining various personal loans, Ben amassed a huge load of debt thinking and hoping he could still salvage his business. With a surging debt amounting close to a million ringgit, Bens life came to a standstill with this merciless mountain of financial trouble. He sold off his car and one residential property to finance that debt but the sale only covered a fraction of his total borrowings. He soon realised his mountain of debt wasnt decreasing much. Ben admitted that at first he refused to seek help from AKPK for assistance as he felt embarrassed about the thought of resorting to an external body to sort out his finances. However, making that first step to come forward for counselling and signing up for the Debt Management Programme (DMP) proved to benefit him as he is now able to repay his debts comfortably. It may be a long chapter for Ben in clearing his commitments, but knowing his entrepreneurial and never-say-die spirit, we trust he will step up and prove himself again in no time.

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Story 24 Some years ago, Mr Keng* sat down with his best buddy at a coffee shop where a discussion about their personal financial achievements took place. After a bout of reflection, his financial state was deemed weak by his friends, particularly in regards to his retirement fund. Due for retirement in four years time, he was even told that his RM6,000 income after working for 30 years was indeed too low. Mrs Keng worked too, but her income was only sufficient to cover her own expenses and her childrens needs. To overcome this problem, Mr Keng was advised to earn additional income in the form of supplying and installing water heater systems as the business seemed to be successful and actively run by his good friend. At first Mrs Keng was reluctant about the idea as she believed her husband was not very business savvy or possessed any business acumen. In fact, family affairs were under control. Nevertheless, Mr Keng was adamant about tasting the fruits of this new venture. Over time, his water filter business took off and for the first six months he managed to gather RM3,000 in average income each month. However, when the countrys economy was severely hit, he introduced an interest-free installment plan to his customers who could not pay up. On top of all these, he used his credit cards to fund his business which soon left his finances dwindling. The debt became harder to bear. This eventually affected his familys finances and left his marriage on the rocks. Almost resulting in a separation and for the sake of not losing his family, he decided to approach AKPK for help. With AKPKs debt restructuring plan, Mr Keng was allowed an easier payment scheme to clear off his debts although it may take a few years. Since his business collections were regular, he was advised to run it on a smaller scale so as to not land himself into further debt. Mr Keng hopes to settle his debt as quickly as possible so that life may return to normal, thus allowing him to retire with an easy mind.

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Story 25 Living with HIV has not hindered Ivy* from living her life as a single mother. She only discovered she had the virus in her when she became pregnant with her firstborn. The virus was contracted when she was in a relationship with her ex-boyfriend. After ending that relationship, she married another man whose child she bore. Luckily, her daughter did not inherit the virus, therefore she was a healthy baby. Upon finding out about Ivys HIV condition, her husband began accusing her of being unfaithful and refused to accept his daughter as his own. The marriage became abusive as he accused Ivy of contracting the virus after marriage. Due to the constant battering and verbal accusations towards her and her daughter for years, Ivy eventually decided enough was enough. Ivy soon moved out with her daughter. Living alone as a single mother separated from her husband, Ivy depended on her own two feet to raise her daughter. She got herself a job that paid the bills. Yet, she had to rely on her credit cards to sustain her living. Her medical expenses were high as she was constantly sick and needed treatment for her weakening immune system as a result of the unyielding virus present in her body. So dire was her situation that she did not have enough money to undergo the periodic blood tests required to monitor her health, as they were expensive for her even at the government hospital. Furthermore, she had to pay for her now 10-year-old daughters series of preventive medication to ensure that she did not contract the virus. Ivy made her visit to AKPK to restructure her credit card owings. Through AKPKs counsellors, Ivy even received information about the Malaysian AIDS Council to get further advice on medical subsidies and financial help. With ease of payment through the AKPKs Debt Management Programme (DMP), she has been able to afford her medical bills and gain peace of mind as she no longer received harsh calls from debt collectors. Through AKPKs assistance, Ivy has since been able to concentrate on bringing up her daughter as she periodically settles her accumulated credit card debt. It may take a few years, but by being constant and on time with her restructured payments via DMP, she will be free from credit card burden slowly but surely.

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Story 26 Losing an income suddenly can be a real shocker and can leave one in shambles if a replacement job cannot be found immediately. Worse still if there is no emergency buffer fund, ideally up to six months of ones living expenses, to sustain oneself during that unwanted transition. Baharom* was that unfortunate individual who was caught unawares. Albeit such a predicament, he readily did odd jobs but those were not enough to sustain himself, more so because those jobs did not provide a secure income flow. Baharom lost his well-paying job in 2001. Since then, he had been hounded by his bank because he could not afford to pay his housing loan commitment. It came to a point where his house was attempted to be auctioned by the bank not once but twice. However, there had not been any potential buyers. His house in limbo and working merely as a driver with wages of RM1,300 monthly, he was at a loss as to how to save his home. According to him, he spent six months in negotiation with his banker in an attempt to restructure his loan. However, the bank refused his fervent requests. Eventually Baharom gave up with a heavy heart as he had no choice but to face the third auction by the bank. (Take note that usually by the third auction, the ceiling price of the house to be auctioned off would be lowered in order to attract potential buyers.) Talking to his employer one day, Baharom was advised to seek AKPKs help. At first he was reluctant as he dreaded the two-hour drive from his home to AKPKs branch. Also, he was unsure if AKPK could have helped him for sure. After some coaxing from his wife, he made the trip from his remote town to the city centre where AKPK was located. Our counsellor revealed to us that Baharom faced countless sleepless nights. Surely money can worry someone to no end as well as make or break relationships. He was thankful that his family still pulled together despite the hardship faced, and the fact that they had solely one roof over their heads. As such, the counsellor was deeply moved to help Baharom sort out his housing issue. Following some negotiations between AKPK and the bank after Baharom signed up for the Debt Management Programme (DMP), the bank finally agreed to postpone the last auction as a payment term was agreed upon. Today, Baharom may still be paying his housing loan installments but at least he still has a house he can call his own. He is also lucky for having his working son help him by way of a 25% monthly contribution to the monthly installment.

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What a timely move by Baharom for approaching AKPK. The idea of this story is to inspire you to have an emergency buffer fund if you do not have one already. Fret not though, as it is never too late to begin allocating your salary for savings.

Story 27 Su Cheng* had spent much money on purchases for herself in the past. Shopping became a hobby, or rather, habit. She loved dressing well and often bought designer clothes. It was hard to imagine that with a monthly income of RM2,000 such lavish lifestyle was possible for her. How did she afford all that? Her four credit cards, of course. Over time, Su Cheng began to fall into the trap of credit card debt as swiping her cards for payments seemed all too easy. She even withdrew cash advances from one card to cover the minimum payment of another card because she could not afford to pay the full statement amount each month. Yet, she kept on buying her favourite things. This went on for many months. Her financial situation worsened as her credit card usage became an addiction. Was it the novelty of not paying with cash, or the convenience and satisfaction of seeing your own plastic card running through the machine quick and easily? Oh, the thrill and satisfaction! Did she not know the consequences of not paying back all of those transactions she swiped or was she just ignorant about it? Or maybe she did not understand how credit card interest works. We must practise the stance that Cash is King. Spending more and more of her income by repaying creditors only left her with a meagre amount to live on. It was akin to a dark financial cloud hovering over her every day. What seemed like a perpetual strain caused massive domestic arguments between her and her husband. Because of constant pressure from creditors, she eventually sought assistance from AKPK. Taking the courage to personally come to AKPK for credit counselling, Su Cheng enrolled under the Debt Management Programme (DMP). Recalling three years ago when she signed up for DMP, she admitted that she felt confused, depressed and unsure of her future. Now, as her husband also chips in for her monthly repayments of her credit card debt, Su Cheng is able to sleep well as she is well on her way to recovering her financial situation. She no longer uses credit for purchases while her marriage life has improved as a result. Most importantly, upon learning from her folly, she now manages her money wisely, reduced impulsive spending tremendously and plays the role of

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financial advisor for her family members by sharing with them her troublesome predicament of misusing credit cards. Indeed, the credit card is a double edged sword if not used wisely due to its compounded interest. Therefore, AKPK urges you to only swipe what you can afford to pay back (in full) when your statement arrives.

Story 28 Love is one of the strongest emotions every human feels in our lifetime. It is for love that we are willing to do anything for our significant other to ensure that they have a smile on their face. Ms. Wan* is one of such people. She walked into the counseling room smartly dressed in a mans shirt neatly tucked in a pair of male trousers, sporting a smart, short and punky mans hair crop. Being illiterate, she has an inclination towards members of the same sex and when she met a sweet Malaysian girl, it did not take her long to develop a relationship. With her girlfriend, Ms. Wan ran some successful businesses - three kopitiams and four hair salons. Since she was unable to read and write, her partner managed their businesses which were in fact doing very well. Her partner handled the bank accounts including credit cards, personal loans and the safe box where Ms. Wan kept jewellery and 27 pieces of gold bars weighing 50g each. Ms. Wan loved her partner very much and when her partner asked for a house and car, Ms. Wan happily paid the down payments. Her partner took the loans in her own capacity whereas Ms. Wan paid for the monthly instalments. Everything was blissful for Ms. Wan throughout the 4-year relationship and she had no qualms in showering her partner with money, jewels and giving her full control of the businesses and its profits. Without Ms. Wans knowledge, her partners sexual preferences changed and led her into the arms of a man. She started dating the man and eventually married him, taking with her all the wealth she accumulated while in a relationship with Ms. Wan; the house, car, jewellery, gold bars and also the businesses. Now ten years later, Ms. Wan claims former partner is married with children and is very wealthy, with assets into millions of ringgits. When she came to AKPK, she told us that she led a reclusive life for ten years due to psychiatric depression. Her aged mother and sister took care of her during this period and she never left her

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house other than her visits to the psychiatrist. In her depressed state, she became oblivious to the monthly commitments she had to pay. Upon recovery, she faced exorbitant outstanding payments for credit cards and two loans she had taken in her capacity of an individual. She found that the outstanding payments escalated tremendously with the addition of compounded interest to the principal sum over a span of ten years. She approached AKPK to help with her financial difficulties as she is now medically fit for employment and has a job as a hairdresser in hand. She is earning fairly as a hairdresser but requested for help from AKPK to assist her with her cash flow to pay her loans which were long in arrears.

Story 29 In the Malaysian upbringing of children, we are taught to respect our elders and this inadvertently causes a child to place his parents on a pedestal as role models. However, what does one do when his role model displays negative behaviour patterns that are detrimental to himself and his family? Aiman*, aged 29, is the youngest child in his family. Aiman secured a job as an executive with a monthly salary of RM 2,200. Aimans parents requested that he live with them, even after he marries. This did not pose a problem to him since he thought he would be able to save money by taking that step. He would not have to worry about monthly payments for rent nor instalments of a house. It was his dream to own a house for his family and lead an independent family life; this arrangement provided a good stepping-stone for him. He was adamant to save that money to ensure that he and his wife would lead a comfortable life in the near future. Aimans problems began after his father started applying for personal loans using Aimans name. There were also instances when his father overlapped the loans by borrowing more money. When payment was due, more often than not, Aiman serviced the loans because his father failed to pay for them. He was of the opinion that his father, who is in his late fifties, should not be taking such loans. Instead, his aged father should be preparing for the wonderful days of retirement. There was no substantial reason for his father to take these loans because all of his children were independent, working adults. Being an obedient son, Aiman was neither able to reprimand his father nor turn him down when he asked Aiman to apply for such loans. However, Aiman was feeling very stressed

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mentally since he had many payments to make and insufficient income to cover all monthly commitments. In addition to this, he also had to tend to the needs of his own family. Aiman had just about run out of options and avenues to sort this issue out when he heard about AKPK. He then immediately made his way to the nearest AKPK office for assistance in financial management. There he received some counselling and the Debt Management Programme (DMP) and its mechanics were introduced to Aiman. Upon working out how the programme will benefit him, Aiman decided to join the programme. The reason for joining the programme was simple, he tried talking to his father about this problem, but it did not work. By joining AKPKs DMP, Aimans father will not be able to take any more loans under Aimans name and this posed as a solution to his problem. He would be able to save and look forward to buying his dream house. People may call him selfish but his fathers bad habits left him no choice and he also needed to take this step for his own financial wellbeing.

Story 30 Pn. Rosnah*, her husband and their children were running a successful food stall in a prime location. Their stall became a local favourite hangout. Pn. Rosnahs once mentioned that Y.A.B Dato Sri Mohd Najib dined at her food stall twice before. He visited the stall before he was appointed the Prime Minister of Malaysia and during one of his visits, he had his meal while standing because all the tables were occupied. Business was good for Pn. Rosnah until her husband fell sick and diagnosed with terminal cancer. Pn. Rosnahs seemingly idyllic world crashed and everything started to fall apart business started slowing down as she juggled cooking and caring for her husband whilst her children started quarrelling over who should take over the business. Pn. Rosnah struggled to keep everything balanced but after her husband passed away, she was too distraught to continue running her business. The loan she took to expand her business went unattended until one day, a summons letter came ordering her to attend a court hearing to settle her debt. She was then referred to AKPK by the bank staff. When Pn. Rosnah came to AKPK, she had no monthly income and was receiving monetary assistance from the welfare department. She lived with her children who were not financially well off either.

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AKPK then proposed her debt to be settled via the step up basis, as Pn. Rosnah could not afford the monthly payment of RM120 under AKPKs straight payment. Pn. Rosnah seemed relieved with the proposal but something was still bothering her the court hearing. She was terrified that she might be sent to jail should she attend the court hearing. AKPK advised her to attend the hearing if she is able to do so. She was informed that it would be better if she explains her predicament to the judge and request to settle the debt via monthly instalments on an amount that she is comfortable paying, without having to go through AKPK. Pn. Rosnah was delighted when given information regarding procedures at court hearings. Before she stepped out from counselling session, she said to the counsellor, Simpan duit bila ada duit lebih, jangan harap anak a simple advice that will definitely be remembered for life to save more for future and to teach our children to be filial children and become respectable human being.

Story 31 En Bakar* and his wife, Pn Mastura* led a comfortable life, both working as sales associates for a well-known product. In fact, they went on to be one of the biggest suppliers for the product in the East Coast region. Business was booming and Pn Mastura seized the opportunity to diversify her investments by purchasing a string of properties in the East Coast. The newfound wealth brought on much pride and arrogance to the couple. They felt the need to purchase four cars, two of which were luxury automobiles, to impress both their downlines and customers. Although the luxury cars were expensive to maintain, the couple was adamant to hold on to them. They used all their savings on luxury goods until the point where they did not have savings left to fund their business. En Bakar and Pn Mastura then tried to secure business loans from several banks but failed due to their huge loan exposure. Dejected, the couple turned to 12 different credit cards to finance their business. They knew the effects of interest on credit cards but they simply did not have any other way to fund their business. Pn Mastura could not let go of what they worked so hard for since the business was their only source of income. They tried hard to keep it running with the help of credit cards.

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The couple realised that the profit margin on their business was shrinking due to the high payments on their credit cards. They were worried about losing customers as the lower revenue forced them to stock fewer products. They also could not deliver and fulfill their customers' needs and were losing out to competitors. The couple was desperate to save the business and secure their financial future and they were drowning in debt of over RM1 million. Their frustration towards their huge debt prompted them to seek the help of AKPK. AKPK advised the couple to sell some of their properties as it was negatively impacting the business. They were also asked to find buyers for both their luxury cars to eliminate excessive spending on both vehicles. They were strongly urged to find a business loan after eliminating huge expenses on property and car loans. The business loan would help lower the couple's dependency on credit cards, further eliminating their high interest payments and ultimately increasing profit for the business. AKPK also restructured all 12 credit cards and was able to lower their monthly payments by almost 50%. En Bakar and Pn Mastura were thankful for the sound financial advice from AKPK. They can now concentrate on increasing profit without worrying about the ill effects of credit cards.

Story 32 Kamarul* was dejected once again. It did not make sense to Kamarul that within a span of 6 years, he lost six jobs. He could not believe that on average he was losing one job a year and wondered if others out there were stuck with his unfortunate luck. Kamarul's ill-fated luck first started with the economic crisis. He did not have a plan for emergencies and never once kept money away for security. Kamarul did seek a lot of financial support from his relatives and friends and distinctively remembers how he hated pleading for money. Unfortunately, he did not have any choice. When he finally got tired of begging, Kamarul used credit cards as a means for more buying power. The cards gave him so much convenience. With the cards Kamarul was able to buy almost anything he wanted. The bank kept increasing his credit limit and that was good news to him. His original credit limit of RM 20,000 from six different cards ballooned into a whopping sum of RM 245,000 over the years. He was under the false impression that all he had to do was pay the minimum payments on the cards

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while the balance could be paid later. He did not realise that the interest accumulated over time when he was too busy using his credit on glitzy items he and his family never had. Kamarul was tired of being in debt and harrassed by creditors. He was also tired of moving three times in two short years to avoid visits from debt collectors. He sought harder for a well-paying career and finally secured a job with a stable income. Kamarul had a baby on the way and needed to build his life again for the sake of his unborn child. However, he had too much debt to secure a happy future. It was then that he decided to seek the help of AKPK. Kamarul could not believe AKPK managed to do so much for his overbearing debts. He was amazed at how much relief the agency provided him. Getting out of debt was something Kamarul never thought was possible. He could now build his dreams without worrying about constant creditor harassment.

Story 33 No one could have imagined that Mr Bala* would ever get entangled in a bad case of debt. He knew the importance of savings and kept aside a percentage of the income he made from his computer repair shop. When an ailing friend was in need, Mr Bala gave up all his savings to help him out. He was confident that he would not need the money in the near future. However, only months after handing his friend his savings, Mr Balas business faced stiff competition by a bigger firm that decided to set up their operations close to his base. As business started dwindling, Mr Bala used his credit cards to fund expenses of his ailing company. He figured that he needed to recoup his losses by injecting more investment, which he knew he could pay off later when business got better. When his business made no progress, Mr Bala could not afford to make repayments on his credit cards from the little income he made through his business. To make matters worse, when creditors came knocking on his door, he realised that he could no longer afford to support his family and at the same time handle repayments on his credit cards. Under tremendous pressure, it came as a relief when Mr Bala, through a friend, heard about AKPKs services. After negotiations with the respective banks, AKPK managed to reduce the monthly debt

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repayment by almost 60%. AKPK proposed a repayment plan that would not put too much pressure on Mr Balas finances.

Story 34 Rafiq*, a Senior Engineer at a utilities company and Anisa*, a lecturer at one of Kuala Lumpurs better known colleges, held secure positions in their respective jobs. With success came a beautiful home in one of Kuala Lumpur's upmarket residential areas, expensive cars and other luxuries. With a joint monthly income of more than RM8,000 monthly, Rafiq and Anisa felt they could afford anything their hearts desired and were well on their way to financial freedom. They were not rookies in the world of credit cards as they both started using them after graduation. Within two years however, they had maxed out all their cards because of reckless spending. They took on personal loans to pay off their credit card debts. They considered the problem solved and went back to using their credit cards to finance their luxurious lifestyle. To put things into perspective, everything Rafiq and Anisa owned was built on borrowed money and unpaid credit. The worry began to set in when the banks no longer wanted to grant them further financing because of their extravagant lifestyle. The bills piled up and soon, there was insufficient money to cover the interest charged on the loans or even meet the minimum credit card repayments. They now had debts amounting to RM750,000 made up of a housing loan, hire purchase, credit cards and personal loans. There was no doubt that they were actually well-off but the methods of cash management seemed to be beyond their grasp. Finally, their unbearable frustration brought them to the doors of AKPK. Initially, they attended a counselling session. The AKPK counsellor suggested that Rafiq and Anisa begin by drawing up a monthly budget immediately. They were taught how to create a spreadsheet, which will show them their monthly cash flow. With this, they would be more aware of their limitations and how much money they would have leftover every month. The counsellor also suggested that a considerable portion of any leftover cash at the end of each month be placed in a savings account as a nest egg so that they could use the money to finance their dreams. On top of all

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this, the counsellor also helped the couple restructure their debt to one easy monthly payment they could afford to handle. Now armed with a wealth of knowledge on cash management and a newfound feeling of security, they could not be happier and are now looking forward to a stress free life.

Story 35 The compulsion to make more money is a part of human nature and Terry* is not an exception. His financial troubles started when, without any experience in investments, he withdrew RM 100,000 from his RM 150,000 savings to launch a share market investment. His belief was if you want to make money fast, the share market is the place to be. He worked hard in making his investment a fruitful one but his lack of knowledge did nothing to help his choice of investment. Unfortunately, the lack of knowledge and experience in the share market industry caused Terry to use up his start-up capital quickly, after which he sought personal loans and credit cards from financial institutions to continue funding his investment. When these financial instruments did not help his situation either, he returned to his old gambling habit with hopes that luck will be on his side. As time passed, his debts increased and he started receiving numerous calls from banks for payments. Because he could not afford the payment of all his loans, his mental health was affected he was always worried when his mobile phone rang and resorted even to using a different number to avoid the calls. He started staying away from everyone he was close to because he was embarrassed of the situation he was in. It came to a point when all his colleagues knew he was paying off a big debt, causing him more grief. When one of his colleagues came to know about Terrys situation, he advised Terry to approach AKPK for assistance. When Terry walked in to AKPKs office, he was a broken man. The counsellor who attended to Terry negotiated lower interest rates for all the credit cards he owned, which was lowered by half. When Terry heard of the good news, he was overjoyed that he would no longer receive calls from debt collection companies for payments.

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Story 36 En Firdaus* and Pn Nadirah* were a newlywed couple who had also only recently landed stable, promising jobs to help them build their life together. However, upon employment, they were pressured into getting married by their respective families. The reason for the pressure was simple, tak sedap orang memandang and they wanted to give a name to En Firdaus* and Pn Nadirahs relationship. After being pressed into getting married, the couple finally gave in to their families and took on loans to finance their wedding expenses. However, they faced difficulties servicing these loans and soon defaulted on the monthly payments. It is not always easy to speak to a third party about your financial issues. This was also the case with En Firdaus and Pn Nadirah. In the beginning, they were hesitant to speak about their financial issues, only giving us the tip of the iceberg to their problems. When our counsellor informed them that they are highly geared at 36 times, they finally opened up to our counsellor and told him what was plaguing them. They revealed that close to 90% of their total loan amount was spent on their wedding preparations. AKPK stepped in to help with negotiations with the respective financial institutions. Once our proposal was accepted by the financial institutions involved, the couple was enrolled in our Debt Management Programme. They were also advised to look at their affordability and income capacity. They were then counselled on managing their finances prudently and to avoid making rash financial decisions in future.

Story 37 Alex* recently graduated from university and landed his first job as a marketing executive in a small pharmacy outlet in Kuala Lumpur. All this while, Alex lived with his family in a rented house. Upon being gainfully employed, he decided to buy a house in Puchong and signed as the co-borrower for the housing loan because his father had a low credit ratin All was going well until his father, who was the primary financial contributor, was diagnosed with a critical illness. This put the financial burden completely on Alexs shoulders.

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At this juncture, Alex was a young executive lacking with essential information on financial management. Alex took more financial aids such as credit cards from a few banks and personal loans in addition to the existing housing loan thinking these aids will help him ease his financial burden. Since then, he has been struggling financially with the care of his bed-ridden father and two schoolgoing siblings. He soon defaulted on his monthly payments to the banks. When Alex came to AKPK, his house in Puchong had been auctioned off but he was still owing to the bank. Counsellors at AKPK worked hard to negotiate with the respective banks to restructure Alexs payments. When the banks accepted the repayment proposal put forth, Alex left AKPKs office a happy man.

Story 38 When Salim* and Adriana* walked into AKPKs office, they brought along their youngest child who was sleeping soundly on Adrianas shoulder. While Adriana attempted giving the counsellor a smile at the start of the counselling session, Salim looked rather troubled. The couple have three children, aged between three to nine years old. Before their third child was born, the couple lived a lavish lifestyle with a combined monthly income exceeding RM 10,000. Going on spending sprees and purchasing gifts to impress family and friends became a norm as money was abundant. However, life took a turn when the couples third child was born. That is when they decided that it was best if Adriana to quit her job so that their children receive the proper parental care and attention. This move caused the monthly income to be reduced considerably, by about 35%. During the first two years after Adriana stopped working, Salim took charge of the familys financial management. The aftershock of the decreased income took a toll on the family though Salim brought home about RM 5,000 a month. Adriana was not happy with the way finances were managed and persuaded Salim to allow her to help him manage their finances.

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In her attempt to help Salim, Adriana took some drastic measures. Among them were withdrawing all of her husbands wages on the day he is paid and segregate the money into small pouches for different expenses such as food, utilities, childrens future etc. In Adrianas opinion, this was budgeting. Nevertheless, their financial situation did not improve as their debt-service ratio was approaching 80% of their income. AKPKs counsellor firstly advised Adriana that she should stop withdrawing all of her husband wages as it is dangerous to be in public with so much cash in hand. Secondly, she was advised to stop segregating his wages into little pouches; instead, she can use certain softwares to help her with the budgeting. She was also introduced to some banking calculators, which will make monthly budgeting an easier task. In addition to this, the couple was advised to enrol in AKPKs Debt Management Programme to lower their debt-service ratio. Upon enrolment into the programme, the couples monthly commitment reduced by approximately RM 3,000. This lessened their burden and they walked out of AKPKs office as happier people.

Compiled from http://www.akpk.org.my/learning/success-stories www.ccris.com -