AKPK Debt Management Programme (DMP): How It Works, Who Can Join and What It Costs You

AKPK's Debt Management Programme (DMP) is a free scheme where an AKPK financial advisor builds one repayment plan around what you can actually afford, agrees it with your banks, and you then pay a single monthly instalment to AKPK by the 5th of each month. It suits people who can no longer keep up with their loan and credit card payments; it is not a new loan, and it comes with real trade-offs, such as losing your credit card limits while you are in the programme.

This guide explains who can join, what debts can go in, how to apply on the AKPK DM Portal, what happens to your credit cards and CCRIS, and what happens if you miss payments. It also shows two worked examples in RM so you can see how a DMP plan changes your monthly cash flow.

What AKPK and the DMP actually are

AKPK (Agensi Kaunseling dan Pengurusan Kredit) is an agency set up in April 2006 that offers free financial education, financial advisory and the DMP. Its Debt Management Programme is a customised plan: an AKPK advisor works out your budget, then proposes a repayment plan to your financial service providers. Once the banks agree, the plan replaces the separate payments you were struggling with.

A few points from AKPK's own FAQ that people often get wrong:

• It's free. AKPK says there is no fee for a financial advisory session or for enrolling in the DMP.
• AKPK doesn't lend money. It doesn't give loans and doesn't help you get new credit. If someone offers you an "AKPK loan", it isn't from AKPK.
• There are no agents. AKPK does not appoint any agent or third party to apply for the DMP on your behalf. Anyone charging you to "settle your AKPK application" is not working for AKPK.

Who can join the DMP

AKPK lists these enrolment criteria. You must:

• Be an individual or a sole proprietor.
• Have unsecured and/or secured loans or financing.
• Owe a total of not more than RM5 million.
• Have those facilities with AKPK's participating financial service providers (PFPs).
• Be having difficulty meeting your repayments.
• Not be declared bankrupt.

AKPK also says people already facing advanced legal action, such as a creditor's petition, may still be considered.

What debts can go into the plan

AKPK accepts both unsecured and secured facilities:

• Unsecured: credit cards, personal loans/financing, unsecured overdrafts, term loans, micro credit, and shortfalls left after a sale.
• Secured: housing loans/home financing and hire purchase/Islamic vehicle financing.

Some limits to know before you apply:

• Only participating lenders. The PFP list covers the commercial and Islamic banks, development financial institutions such as Agrobank, BSN and Bank Rakyat, the digital banks AEON Bank and GX Bank, and some non-bank credit providers such as AEON Credit. Loans from companies or licensed moneylenders can't be restructured by AKPK.
• Salary-deduction and ANGKASA loans can only be restructured for the specific institutions AKPK names (for example Bank Rakyat, BSN, MBSB Bank and Bank Muamalat). Check the FAQ list for your lender.
• PTPTN can only be included if you also have other facilities with participating lenders. If PTPTN is your only debt, you deal with PTPTN directly.

How to apply on the AKPK DM Portal

1. Register on the AKPK DM Portal and choose "Individual" for the DMP.
2. Click "Start A New Application" and fill in the form.
3. Upload proof of income. Employees upload their latest one-month payslip. Self-employed people, unemployed people and retirees without a pension upload a statutory declaration sworn before a Commissioner for Oaths. Pensioners upload their latest pension statement.
4. Add supporting documents if they apply to you, such as a doctor's letter for critical illness, disability certification, or medical bills.
5. Wait for processing. AKPK says applications are processed within 7 working days, and you get an email when the plan is approved.
6. Log in, review your DMP plan, and click "Acknowledge". If you don't respond within 3 days of approval, AKPK treats the plan as acknowledged and it becomes active.
7. Register for e-Mandate (direct debit). AKPK says this is mandatory for new customers, and the deduction happens on the 5th of each month.

Before you start, list every debt with its balance and current monthly payment, and write down your real monthly budget. The Money Tracker is a simple way to see where your gaji actually goes before you sit down with an advisor.

Worked example 1: how much can you offer each bank?

Kumar takes home RM4,500 a month. After rent, food, transport, utilities and his children's costs, he has RM1,000 left for debt. His current instalments and minimum payments add up to about RM1,700, so he is short by around RM700 every month and has started paying one card with another.

His debts:

• Card A: RM15,000
• Card B: RM5,000
• Personal loan: RM20,000
• Total: RM40,000

AKPK's Self-Help Debt Relief Guide suggests splitting what you can afford between lenders on a pro-rata basis (it gives the formula in its Appendix 3). Splitting RM1,000 in proportion to each balance:

• Card A: RM15,000 ÷ RM40,000 × RM1,000 = RM375
• Card B: RM5,000 ÷ RM40,000 × RM1,000 = RM125
• Personal loan: RM20,000 ÷ RM40,000 × RM1,000 = RM500

This is the kind of starting point an AKPK advisor works from. The final instalment for each facility, and the rate and tenure behind it, is what AKPK agrees with the banks, so your actual plan may differ.

Worked example 2: why a longer tenure lowers the instalment but costs more

Most of the relief in a debt plan comes from spreading the balance over a longer period. Take Kumar's personal loan with RM20,000 left, at an illustrative 8% a year on a reducing balance:

• Over 36 months: about RM626.73 a month, total interest about RM2,562.
• Over 60 months: about RM405.53 a month, total interest about RM4,332.
• Over 84 months: about RM311.72 a month, total interest about RM6,185.

Stretching from 36 to 84 months halves the instalment, but adds roughly RM3,600 in interest. That trade-off is often worth it when the alternative is falling into arrears and legal action, but it isn't free. You can test different tenures for your own balance with the personal loan calculator.

The good news: AKPK says it strongly encourages extra payments and early settlement during the DMP when you can afford it, because that cuts your overall borrowing cost. A bonus or a pay rise is a good time to do this.

What you gain from the DMP

AKPK lists four main benefits:

• Cash flow realignment: one plan built around what you can afford.
• Reasonable repayment terms based on your available cash flow.
• A moratorium on legal proceedings by the lenders in the plan.
• No harassment from debt collectors.

What you give up

• Your credit cards and overdrafts are withdrawn. AKPK says credit lines like cards and overdraft facilities will be withdrawn when you enrol. Plan for how you'll pay for things that used to go on the card.
• New credit is hard to get. AKPK can't stop you applying for a new loan, but approval is up to the lender, and you shouldn't expect easy approval while you're in the DMP.
• It shows in CCRIS. AKPK encourages DMP customers to check their CCRIS report regularly to make sure it matches their DMP payment history. A restructured facility looks different to a lender than a normal one. See how to read your CCRIS report for what banks see.
• Late payments still cost money. If you pay AKPK after the 5th, the banks can impose extra charges, which raises your cost of borrowing.

Worked example 3: what happens if you miss payments

This is the part most people underestimate. Say Kumar's DMP instalment is RM1,000 and he misses January, February and March.

• After 3 consecutive missed months, the DMP is terminated automatically.
• Once terminated, AKPK says the banks can resume legal action, claw back the interest rate, re-charge interest previously waived, and reimpose penalties, late charges and legal costs.
• To reinstate the plan, Kumar must clear the full arrears within 90 days of termination. That's RM3,000, and AKPK advises including the current month's instalment too, so about RM4,000.
• If he can't, he can only reapply one year after the termination date.

If you know a payment will be difficult, contact AKPK before you miss it rather than after.

Leaving the DMP

• Full settlement: check the latest balance with each bank, pay it off, then upload the bank's release letter on the DM Portal.
• Voluntary withdrawal: you can withdraw only after at least one year in the programme.
• Bankruptcy or death: the DMP is withdrawn when AKPK is notified.

Should you go to AKPK, consolidate, or sort it out yourself?

• Still paying on time, just paying too much interest? A cheaper consolidation loan or a payoff plan may be enough. See debt consolidation in Malaysia and debt snowball vs avalanche.
• Only one or two lenders and a workable surplus? AKPK's Self-Help Debt Relief Guide shows how to write your own repayment proposal to the bank, with a monthly budget form and sample letters. AKPK suggests approaching your lenders first.
• Already missing payments, juggling cards, or getting collection calls? That's what the DMP is for. Book a free advisory session first if you're unsure.

Common mistakes

• Paying an "agent" to apply for you. AKPK doesn't use agents, and the DMP is free.
• Overstating your budget to get a shorter plan. If the instalment is too tight, missing three months ends the plan and brings back the waived charges.
• Forgetting about the 5th. Keep enough in the e-Mandate account before the deduction date.
• Assuming every debt can go in. Moneylender loans, company loans and some salary-deduction loans can't.
• Not checking CCRIS. Compare it with your DMP statement every few months and raise any mismatch.
• Taking new debt to "help". Your cards are withdrawn for a reason; buy-now-pay-later and new personal loans can undo the plan.