In a recent post shared on the Muflis Bankrupt Facebook page, an anonymous man (let’s call him Amirul) opened up about how his financial situation spiralled out of control, showing just how risky easy loans can be.
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He saw the loan as an opportunity
Amirul shared in the post that what led him to take out a personal loan was how easy it was for him, given his position as a government staff.
He admitted that at the time, he was thrilled at the idea of having access to a large sum of money, especially since he was eligible for the loan.
“Back then, I was really excited to get a loan because it felt amazing to have so much money, especially since it was so easy and I was eligible (being a government staff). But that’s where my regret started.”
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He kept increasing the amount each time
After Amirul took out a personal loan, he shared that this was the moment his regret started to set in, as he ended up misusing the loan and spending it in ways he hadn’t planned.
He explained that he started with a RM50,000 loan, and when the money ran out, he would overlap the loan with another bank. Each time he did this, he ended up adding more to the loan amount.
“Sometimes I’d add RM10K, other times RM20K. I kept increasing the amount as long as I was eligible.”
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He was left with a RM200,000 debt
Amirul then shared that, because he kept switching banks and increasing the loan amount each time, the total debt eventually ballooned to RM200,000.
He admitted that none of the money he borrowed was spent on anything meaningful or necessary. In fact, it just vanished because he didn’t manage his spending well.
Now, his monthly payments are sky-high, so he had to apply for a restructuring with the bank and made it his mission to pay off the debt.
“One lesson I’ve learned is that unless it’s absolutely necessary, don’t take out a personal loan. It can really weigh you down.”
We hope everyone takes this as a reminder to manage your debts carefully and plan ahead!
Also read: “Still surviving” – M’sian With RM3.5K Salary Works 3 Jobs to Pay Off RM1K House Loan Every Month
