MALAYSIAN STRUGGLING WITH DEBT CASE STUDY #1
MALAYSIAN STRUGGLING WITH DEBT
“Where do I go?” “Who can I turn to?”
I met Ian (not his real name) when I went back to serve as a coach in one of the property investment course I previously attended in 2013. He was introduced to me by a friend, who said that I needed to help him.
Our first meeting at Old Town Coffee at Kuchai Lama over lunch, Ian shared with me that he was working as a Graphic Designer & has been working for more than 10 years but find it very hard to have any savings. I see him as someone who has a dream , an ambition because he told me people around him, colleagues, friends and even relatives have already have their own family and owned few properties but he is still single and haven’t bought his first property nor started any investment
“Here is how his situation look like”
This was his situation
- Credit card debts, personal loans & Car Loan close to RM 66,000
- Negative cashflow of RM 1,767 (Outflow more than monthly salary)
- Earns RM 5000/month salary
- His CCRIS has been badly affected, as he wasn’t prompt in paying his debts
- Total commitments of RM 4,870/month
“To be honest…..”
To be honest, I thought he was in a worse off situation. But after reviewing his situation, I share with him 2 strategy to resolve his situation. One strategy – Debt restructuring formula, as he had multiple loans which needed to manage. 2nd strategy was a money management hack which help him not to fall back into the same situation moving forward.
Here is how his before & after look like
” If there’s a slightest chance for you to make a change in your life, don’t let go of it. Keep moving and going and you will find a way.”
After applying the strategy, he had
- Reduce RM 3,152/month after restructure his debts from RM 4,870 to RM 1,718 per month
- Overall Ian could now save RM 1,650/month as a result (Monthly salary having surplus)
- Save on interest rate of 7-9% averagely for his credit card debts & personal loans
- Bought his first property of RM 200K & subsequently another RM 900K with his team
- Avoid being ‘EARMARKED’ by not going to AKPK else he wouldn’t be able to buy property. (I don’t have anything against AKPK, as they genuinely help people restructure their debts, they need to you to fully pay off your debts before taking more new debts & prevent you from opening new banking account)
“Ian was a Mr Nice Guy to others, but is he nice to himself?”
So with this 2 financial strategy, Ian can free himself from his debt problem & pursue his dream of owning his own property. What I found out from Ian was, he was an easy going and easy to ‘trust people kind of guy’ which led him to this problematic situation.
This same trait led him to this situation of trusting his friend, his friend’s MLM products and he didn’t know how to say NO. Because he doesn’t have any money guide, he doesn’t know how much he spent over the years. After this experience, he is very much aware of his financial situation.
“Now, here is where help is……”
If you are in this situation or similar debt circumstances, looking for help, CLICK HERE for a initial 1 to 1 assessment, as we know how tough it is to be stuck & not knowing where to turn to.
*DISCLAIMER – All strategies listed here are not a recommendation nor advise. The article is written purely for the purpose of education and journaling only. The content of this article is an expression of my opinion and should not be taken as professional advise. If you are seeking for professional advise, please consult me personally . You should do your own research and/or seek expert’s advice when overcoming your debt circumstances.