The Debt Advisory Centre (DAC) expected to help about 200 people in the Malay community struggling with debt in the first two years of its existence. Instead it has seen a significantly higher 580 cases in the first year alone.
Set up by the Association of Muslim Professionals (AMP) in April last year, the DAC aims to address debt problems among Malays here. Most of the people who have approached it for help are aged 30 to 49 and married with children. The average debt for each case stands at about $29,000.
Every week, an average of 120 people call the DAC helpline, of whom about 50 go on to seek formal help with the centre. From October last year to April this year, the DAC has seen a rise in the number of younger people in debt. The DAC said many people seeking help earn less than $2,500 a month. About one third got into trouble owing to poor financial management and 26 per cent blame lifestle and high expectations for their debt woes.
In more than half of the cases DAC sees, debtors owe money to licensed moneylenders and financial institutions such as banks. DAC has also seen cases of non-Malays and non-Muslims approaching it for help. It estimates that 5 per cent of its cases come from these people.
Of the 580 cases, DAC has managed to close 53 per cent. The rest are going through various stages of debt management. It has also recently worked with a number of organisations, such as the Housing Board, to better help these people.
Thoughts:
- It is useful for such centres to be made known to the public! I think there are many people who have fallen into hard times and have troubles with their hire purchases and installment plans etc. Good to know where to seek help as financial worries are one of the most challenging stressors that one can experience!
Thoughts anyone?
Yours,
Something Small Thinking Big
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