From Mr Lee, a viewer who wrote in by email
Mr Lee has a permanent job, but his credit card, personal loan and housing loan payments now exceed his income. His Rumawip unit in Kuala Lumpur has just been handed over, partly furnished with no furniture, and he cannot afford to fit it out or move in. His CCRIS record is still clean, but he expects to start missing payments within months.
Should he rent the unit out, or put all his debts through AKPK, the debt management agency, to avoid bankruptcy?
“the only cure for anxiety is action”
Rent the unit out and stay where he lived before. Use what credit he has left, or a friendly loan from his parents, to furnish it just enough to let. Go to AKPK only if he cannot keep up, and cut spending and add income straight away, because the cause is overspending, not the property.
Why
Owning a home has three costs
The down payment, the monthly instalment and the cost of furnishing. Buyers of new launches often forget the third, and that raises in the years before handover rarely keep up with living costs.
Rent can carry the unit
Sean expects a Rumawip unit like this to rent for at least its instalment, roughly RM1,800 against RM2,000. A tenant's two-plus-one months' deposit also buys a few months' breathing room.
Debt for income is different
Borrowing on a zero-interest instalment plan to furnish a unit that then earns rent is not the same as borrowing for gadgets or clothes. If furnishing everything is too much, he can rent out the bigger rooms and live in the smallest.
AKPK is not bankruptcy
AKPK consolidates card and personal loan debts into one repayment and stops new credit. Missing payments instead leads to warnings, notices and, within about six months to a year, auction; bankruptcy can even cost a job, since you cannot hold a bank account.
What to do
- Move back to your previous home and put the unit up for rent.
- Furnish only what a tenant needs, using zero-interest instalments, second-hand pieces or a loan from your parents.
- Sell belongings you haven't used in three months, and downsize spending everywhere you can.
- Take on part-time work at weekends and holidays to raise income quickly.
- Before buying a home, set aside the would-be instalment each month to test whether you can carry it.
Editorial Note: Summarised from Sean Tan's full episode. The quoted answer is in his own words; the rest is our paraphrase. Figures reflect the recording date, so check current rates and rules before acting on them.
ASKING SEAN #274 | GOING BANKRUPT FOR A RUMAWIP
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #274. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in February 2025. The episode is sponsored by The Makeover Guys, a renovation company Sean mentions as offering instalment plans.
