Melaka: Approximately 1,900 youths in Melaka, aged between 20 and 30 years, have sought services from the Credit Management Programme (PPK) of the Credit Counseling and Debt Management Agency (AKPK) as of Dec 31, with a total debt of around RM138 million.

According to BERNAMA News Agency, Melaka AKPK head, Mohammad Farid Fadzi, stated that the largest group of young clients at the branch were those earning between RM2,000 and RM4,000 per month, with a total of 931 individuals and a total debt of approximately RM65 million. He explained that the high cost of living, which has led to the inability to manage debt and affected the quality of life, is one of the main reasons why these youths seek assistance with their repayment plans, accounting for 52 per cent of cases.

The second reason identified for the financial difficulties faced by these young individuals is unexpected financial commitments, which account for 11 per cent of the cases, with a total debt of around RM14 million, along with job loss, which accounts for 6 per cent of the cases. Mohammad Farid highlighted the importance of identifying the reasons behind the high debt burden among young people and the necessary steps they can take to alleviate these financial pressures.

Mohammad Farid also emphasized the necessity of a disciplined approach to financial planning. This includes understanding basic needs, practicing savings, and developing personal financial management skills to effectively navigate current financial challenges.