KUCHING: 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, says Agensi Kaunseling dan Pengurusan Kredit (AKPK).
In a statement, the agency says the moratorium helps households to survive without having to worry about debt commitment.
However, the moratorium that has been implemented for three months now will soon end on September 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,” they warned in a statement.
“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 AKPK. AKPK is ready to provide financial counselling and debt management services to affected individuals.”
Among some of the tips suggested by AKPK to prepare for this is to find out your 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,” they said.
“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.”
AKPK also advised the public to start planning on how to secure future income by perhaps trying new ways of generating income or revenue to replace income loss.
“Explore retraining and upskilling,” it added. “Consider free online courses to increase knowledge in existing / new areas that allow us to have better job opportunities.
“Don’t forget to explore the available Covid-19 compensation fund/incentive packages provided by the government such as one-off cash assistance, assistance for employees asked to take unpaid leave during MCO or assistance for small and medium sized enterprises.”
AKPK can be reached at 03-2616 7766 or via website www.akpk.org.my and bit.ly/AKPKdmp2020 link.
For the latest tips on financial management and online financial management, go to power.akpk.org.my or AKPK social media sites such as Facebook, twitter and Instagram.