Let’s be real for a second.
Debt is one of the hottest (and scariest) topics in Malaysia right now.
Almost everything today feels impossible to buy with cash — especially houses.
I still remember this story from my mum’s time.
She bought a terrace house decades ago for RM70,000.
Fast forward to 10 years ago… she sold it for RM500,000.
That’s almost 10x growth 💥
But here’s the painful truth:
👉 Salaries did NOT grow 10x.
Back then, a fresh graduate engineer could earn around RM1,800.
Today? RM3,000–RM5,000 is already considered “good”.
House prices? Skyrocketed 🚀
Income? Slowly crawling 🐢
So yes — debt is sometimes unavoidable.
But the real problem starts when debt goes beyond your ability to pay.
Some people are only 28 years old, but already drowning in loans.
If that sounds like you (or someone you know), keep reading — because this might save years of your life.
Step 1: Face the Truth — List Down ALL Your Debts 📝
Before anything else, you must know:
How many debts you have
The total amount
Monthly instalments
Interest rates
No hiding. No guessing.
You can’t fix what you refuse to see.
This step alone already opens many people’s eyes.
Step 2: Arrange Your Debts by Priority 🔢
Once everything is clear, arrange them properly:
Which debt has the highest interest?
Which one has the shortest or longest tenure?
Which one is draining your cash flow the most?
Not all debts are equal.
Some are silent killers 💀 (looking at you, credit cards).
Step 3: Choose the RIGHT Strategy to Kill Your Debt (This Is the Game Changer 🔥)
Here are 5 proven methods to eliminate debt — choose wisely:
1️⃣ Debt Swap (Lower Interest, Same Debt)
Move high-interest debt (like credit cards at 18%) to another bank offering:
Lower interest
0% balance transfer (if eligible)
Same debt. Much lower damage.
2️⃣ Debt Stretch (For Cash Flow Emergencies ONLY)
Extend your loan tenure to reduce monthly instalments.
⚠️ Warning:
This is ONLY to survive cash flow issues —
NOT to take new loans.
Do it wrongly, and you’re digging a deeper hole.
3️⃣ Debt Snowball (Psychological Win 🧠)
Pay off the smallest debt first.
Why?
Because small wins build momentum.
Once one debt is gone, you use that payment to attack the next one — like a snowball rolling downhill ❄️
4️⃣ Debt Avalanche (Mathematically the Best 📊)
Focus on debts with the highest interest rate first, regardless of amount.
Example:
Credit Card: 18%
Personal Loan: 8%
Car Loan: 3%
PTPTN: 1%
Kill the 18% monster first.
This method saves you the most money long-term.
5️⃣ Debt Consolidation (Powerful but Dangerous ⚠️)
Combine multiple debts into one loan — usually through refinancing property.
Pros:
Lower interest
One payment only
Cleaner financial structure
Cons:
Longer loan tenure
Risk of repeating bad habits
Can only be used once or twice in a lifetime
This is last-resort strategy.
Always get advice from:
Licensed Financial Planners
AKPK
Bank Negara / Securities Commission advisors
Final Truth Most People Ignore 💡
Debt settlement is not magic.
If you close debt by opening new debt — you’re still in debt.
The real solution?
👉 Fix your habits.
There’s always a reason why debt piled up in the first place.
Change that, or history will repeat itself.
💬 Comment below:
Which debt strategy have YOU tried before?
And if you want more content on money, investing, and financial freedom — make sure to follow and subscribe to reliable financial education platforms.
🚀 BONUS: Grow Your Money While Fixing Your Finances
Hey! I’ve been using this wealth management app called Versa to grow my money.
✅ Easy to use
✅ Beginner-friendly
✅ Products managed by experts from AHAM Asset Management Berhad
You should try it too 👇
When you sign up using my link, you’ll get RM10 reward after completing these steps:
How to Get RM10 with Versa
1️⃣ Download the app
👉 https://download.versa.com.my/1bAf/referral?deep_link_value=UAVR6K5X
2️⃣ Sign up using referral code: UAVR6K5X
3️⃣ Complete onboarding
4️⃣ Make your first cash-in of minimum RM100
Your money should work for you — not just your debts.
Start small. Start smart.
Your future self will thank you. 💪💰
