January 25, 2007 21:05 PM   

8.8 Million Credit Card Holders In M'sia

KUALA TERENGGANU, Jan 25 (Bernama) -- There are about 8.8 million credit card holders in Malaysia and most are living beyond their means, charging a total of RM19.3 billion of their spending to various financial institutions.

Credit Counselling and Management Agency chairman Datuk L. Meyyappan who revealed this, however, said the amount was considered small as it made up only 6.2 per cent of total debts to financial institutions with the most being housing loans at RM312.2 billion.

"On the average, Malaysians have three credit cards each. But overall, they are disciplined pay masters compared to those in other countries.

"In fact, unpaid debts involving credit cards amount to only 3.4 per cent or RM670 million of the total outstanding," he told reporters after officiating the agency's office here at Bank Negara Malaysia's Terengganu branch, Thursday.

Also present was the agency's chief executive officer Mohamed Akwal Sultan.

Meyyappan said that about 60 per cent of credit card holders in Malaysia paid the full amount of their debts every month, while the remaining only settled the minimum amount.

He also said that since its inception last April, the agency had helped 1,500 debtors from the 11,000 people who opted for its free services to help them in their financial problems.

According to the agency's statistics, 51 per cent of those who sought the agency's help did so because of credit card payment problems.

"Many of them borrow as a result of a lavish lifestyle. Our credit management programme has helped them to merge their debts and restructure their loan payments.

"This programme helps to ease their financial burdens, giving them the capability to make payments while living a normal life," he said.

Meyyappan said that the main objective in the setting up of the agency by Bank Negara nationwide was to ensure that all households managed their finances prudently apart from providing consultancy services in credit and financial management.

Apart from Kuala Terengganu, the agency has four other branches in Kuala Lumpur, Penang, Kota Kinabalu and Kuching.

Except for Kuala Lumpur where its branch office is located at the Maju Junction Mall in Jalan Sultan Ismail, the others are located within Bank Negara's barches.

-- BERNAMA