Debt Basics

Are You Credit Wise?
How to get out of debt
With today’s increasing debt levels, understanding debt is more important than ever. When used and managed carefully, debt can actually enable you to:
  • Build a credit history
  • Buy a house
  • Send yourself or your kids to school
  • Track and manage your spending.

Some debt, specifically your home mortgage, may even allow you to reduce your income tax. Understanding debt and using it wisely can help create a better, more fulfilling life for you and your family and can steer you toward a more stable future.

However, for those who struggle with debt, the financial future feels uncertain at best. It’s overwhelming, it’s nerve-racking, and it’s difficult to know how or where to begin to get out of debt.

In Malaysia, about 30 percent of credit cardholders pay the amount outstanding in full. A large number of consumers, however, typically only pay the interest and a bare minimum amount of the principal outstanding and thus never fully repay the entire sum.


Based on the demographic profile of debtors who have sought the assistance of Agensi Kaunseling dan Pengurusan Kredit (AKPK) (also known as the Credit Counselling and Debt Management Agency) in relation to their problems with debt including credit card debt, 60 percent of credit card debtors are below the age of 40 and 65 percent of them earn less than RM36,000 a year. Learning the importance of good spending habits therefore cannot be overlooked.


If you are in debt, you can follow this step-by-step guide to getting out of debt, and read about the rewards.

10 Smart Steps To Tackling Debt Rewards of Getting Out of Debt