Usually they will try to reduce it by half. So if 2500 per month, it might be 1250 per month. And if you have housing/car loan, they will usually ask you to sell it off. But you can tell them, that you can still afford to pay for the house in full and you just need help with the rest of the debt. That is what I did to my car loan and credit card last time since they are almost fully paid.

That time my car need only around RM 1000 for the loan to be fully paid. And the credit card was around RM500. Early in the session, they told me better if I sold off the car if I couldn't afford the payment. I told them that since the balance so small and I have an upcoming payment that can clear both debt soon, I prefer that it would be left out from the debt management program.

IINM this is what I have when I went to register for the DMP program

Car loan - RM1000 (around 6 months worth of installment)
Motorbike loan - RM2000 (around 10 months worth of installment)
Credit card (1) - RM 500
Credit card (2) - RM 5000
Personal loan (1) - RM 4000 (2 years left)
Personal loan (2) - RM 4000 (2 years left)
Personal loan (3) - RM 8000 (4 years left)
Personal loan (4) - RM 12000 (4 years left)

After the discussion with the officer, I exclude my car loan, motorbike loan and CC1 from the DMP. Car loan and CC1 I make a full settlement before I start the DMP. The motorbike loan is under my name but other people are paying for it (helping a friend buy a bike). So no problem with it. In the end, I restructure the payment for the 4 personal loan and CC2. Instad of paying RM1.2k+ per month, down to RM 610 per month. This June, I'll be exactly 2 years under the DMP. No hassle nor headache from debt collectors anymore.

The interest has been included in that. You will need to get the all the loan statement from the bank before the DMP start. They will calculate how much you have paid and how much you still owe them and give you an updated statement. This updated statement will be used by your case officer to determined how much you need to pay each month for the DMP.

During the DMP consultation, they don't really discuss about the principle and interest rate. Main objective is to give you the amount that you can pay every month to the bank so that all legal action against you can be stopped. In my case, half the original commitment monthly is good enough to make me agree as I don't have any fixed income source.

Chances are you won't know about it. You have to remember, you are not dealing with the banks. You are dealing with the AKPK officer. They don't have the ability to determine your interest rate. They just help you with the repayment plan and you just stick with it. And from what I understand, no more interest is charged on the loan balance amount once you start the DMP program. Even if the payment period is prolonged. You just stick to your payment until the debt is cleared.

This post has been edited by even_steven: Apr 4 2015, 04:16 PM

Since you seems to know more than me, better you go and check with AKPK directly. I don't have the answer for you.

All I know and understand is I am paying for the amount stated in the bank statement given by the banks just before I start the DMP program. And in that statement they have include the interest, penalty and whatever legal charges incurred to be paid. That is the amount that I am paying and no more interest are charged on top of that.

Dude, when they say there is no more interest, I don't ask what is the interest rate is.

Nope. I just go to the bank, ask for my latest bank loan balance statement and submit it to the AKPK. If you wanna nego all those interest rate, better you don't go to AKPK and go deal directly with your bank. AKPK ask you to provide them with the latest loan balance statement, select which debt you want to manage, and calculate your new repayment amount. That is it.

Plus most people that goes into AKPK, they don't want to complicate the things more. They just want a solution and try to avoid from being declared bankruptcy or legal action.

Once DMP started, no more interest is charged by the bank. AKPK is 2 pronged. To help people like us to repay our debt and save us from bankruptcy. And to help the bank to collect back what can be considered as bad debts. The banks got nothing to gain if they take legal action and declared u bankrupt. That is why bank is willing to cooperate with AKPK. Consider AKPK as the bank debt collector that help you at the same time.

Around 7-8%. Dont remember.

This post has been edited by even_steven: Apr 4 2015, 06:09 PM

All the personal loan is for 5 years. And I have stated how long is the balance in my detailed post.

I dont think so. Why would a company do a financial background check on you.