PETALING JAYA: The six-month moratorium that began in April 2020 is one of the Covid-19 incentives which has benefited borrowers, especially those affected by loss of income.
Although only temporary, the granting of the moratorium was implemented at the right time and could help individuals ease their financial burden in times of crisis. It helps households to survive without having to worry about debt commitment.
The moratorium that has been implemented for three months now will soon end on Sept 30,2020.
For those whose income have not been affected by the pandemic but still choose to accept the moratorium, they will not have difficulties paying back the loan post moratorium.
However, those who are still financially challenged and are struggling to make end meets are urged to seek help early either by contacting their respective financial institutions or Agensi Kaunseling dan Pengurusan Kredit (AKPK).
AKPK is ready to provide financial counselling and debt management services to affected individuals. Some of the useful tips to assist individual preparing for post-moratorium financial challenges:
> Be mentally and emotionally prepared that there will be no extension of moratorium after Sept 30,2020.
Borrowers need to make preparation for repaying their debts as usual.
> Do not wait until the last minute. Fulfil your obligation as a borrower. Plan your loan repayment before the moratorium ends. Contact AKPK for money and debt management advice. Don’t hold back because the longer AKPK waits, the less options the agency has finding a solution.
> Find out the latest loan monthly instalments.
Remember to contact your financial institution for information on the latest monthly instalment post-moratorium. There may be some increase in the monthly loan repayments.
> Review your current financial position by updating your financial statements such as the net worth and cash flow statements. The net worth statement provides a clear picture of your debt position as well as existing assets, whereas the cash flow statement shows the source of income and cash outflows.
These financial statements can help us plan the necessary actions that need to be taken such as liquidating an asset in time of need.
> Review monthly budget and manage cash flow. It is important to review the post-moratorium monthly budget to ensure we are able to meet debt repayment requirement post moratorium.
AKPK can be reached at 03-2616 7766 or via website www.akpk.org.my and bit.lyAKPKdmp2020 link.