Debt consolidation replaces several debts with one loan at a lower blended rate — one payment, one date, usually a smaller monthly outflow.
Step 1: List everything Write down every debt: balance, rate, monthly payment, remaining tenure. Credit cards at 15–18% p.a. compounding are usually the priority.
Step 2: Check the target rate Consolidation only helps if the new rate (plus any fees) is meaningfully below your blended current rate. A secured consolidation loan against property often achieves this.
Step 3: Mind the tenure trap Stretching RM50k of card debt over 10 years may halve your monthly payment yet increase total interest. Aim for the shortest tenure you can comfortably afford.
Step 4: Close, do not just clear After consolidating, reduce card limits or close accounts you do not need — re-maxing cleared cards is how consolidation fails.
Who should consider AKPK instead If debts exceed your realistic capacity, the free AKPK debt management programme restructures bank debts without a new loan. Consolidation via a lender suits those with stable income who want to simplify and save interest, not those already unable to pay.