Hi Balthier - answers in blue below.
Hi, thanks for sharing the information.
I currently working oversea and i had problems paying my due past 2 months.
I have: credit cards RM 30,000 (5 cards)and personal loan RM 8,000.
1) I have a house loan from one of the affected credit cards which i defaulted 2 months (RM3,000 each) but still keep prompt payment for the house loan as my sister is helping me out.
ANSWER: If your monthly house instalment is too high for you, try discussing with your bank concerned to lower the interest rate and increase the number of years of repayment in order to reduce the instalment amount. If it is worth doing, you can also refinance your house and get the cash to pay off all your credit-card debts. If it is worth refinancing, negotiate with the credit-card banks to get very good discount if you tell them that you want to pay off the debt with one lump sum. If this option is working for you, then your only worry is to monthly pay your house loan and nothing else. Anyway, please do some research and discuss properly with the AKPK consultant.
2) Will my enrollment with AKPK will trigger bank to reposses or sell off my house to offset my debts?
ANSWER: No, AKPK is only like a "middle agency" to help debtors. You will be advised to give up all your credit cards to your respective banks once your application is successfully enrolled with AKPK. AKPK wants to protect you and do not want you to continue overspending with credit cards. AKPK may advise(not repossess/sell off) enroller to sell off a house if he/she has many houses in order to manage your debt-repayment better. This is an option and not a MUST. Remember, each enroller's financial debts & property situation is different, so AKPK is there acting only like a financial consultant/negotiator between the bank(s) and you. AKPK has no jurisdiction to repossess properties nor impound passport nor blacklist any enroller.
3) I have insurance policies which tied to my credit cards, how will this work out if i have to surrender credit card?
ANSWER: If u have to surrender your credit card, then payments to your insurance policies will need to pay by other means like cheques, cash or auto-debit standing instruction with your bank account or if your sister can help you to pay first if you are oversea. Normally, after the insurance premium due date, you have one(1) month's grace period to pay after which your insurance may lapse unless you have sufficient monetary value in your policies to advance the premium payments automatically if you have opted for this option in the first place. However, once the monetary value in your insurance policy is used up, there will be no more advance payments unless you pay back all the advances to your policies.
Hope to get extra guidance before i see AKPK this Thursday. Any help is much appreciated.
