Man with $5k salary trapped in 'living hell' after 2 years of borrowing from licensed moneylenders
Cherlynn Ng
Posted on 16 January 2019 | 39,790 views | 57 comments
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Stomper Anomymous has been trapped in a vicious cycle of borrowing from and repaying licensed moneylenders, and hopes to caution people who might be in similar situations from entering the same nightmare.
The 31-year-old borrowed $10,000 in total from two moneylenders ($5,000 each) in 2016 -- but still owes the same amount even after over two years and sees no hope of breaking out from the cycle.
Anonymous said that besides a 4% monthly interest rate, the two moneylenders he took a loan from also impose a 10% admin fee each time a sum is borrowed.
This makes repaying his loan all the more impossible despite him drawing a salary of $5,000, especially since partial repayments and installments are not allowed.
Here's what would happen each time, according to Anonymous:
- Get salary
- Use salary to repay the first moneylender
- Reloan from the first moneylender to repay second moneylender
- Reloan from second moneylender to pay for expenses
- Repeat the cycle next month