yup! it sometimes happens in the philippines too! cos some of us are tight on money, but other times people get scammed saying that it’s g for starting a business etc and they end up being in debt. hope that answers your question!!
It's actually common in many countries. I know such situations exist in Turkey too. Since some of the people can't take bank credits due to their low scores or low income and still desparately in need of money.
And what would be the best solutions not to fall for these debt traps?
It is always quite ironic to take out a loan because you re in desperate need of money... In the end after taking these loans you re in a much worse situation!
awareness. though it's hard if you're in desperate need of money and no one else is willing to lend you some but the loan sharks.
MLM's and pay day loans are the equivalent in the West. Where when you miss a payment the interest can be up to 10 times or more, more than you borrowed. I have seen adds where the apr is 1250% on what you are borrowing.
So the lesson is:
No matter in which countries NEVER BORROW MONEY WITH INTERESTS!
Unless it is from very trustful friends or a serious solid bank that rather invest with micro credits than high loans.
i can’t really say that they’re all stupid for taking up illegal loans but there is a limit as to how much you can borrow legally depending on your current assets, income and various other factors in my country.
plus i heard that it’s less of a hassle than borrowing money from legal sources? idk haha
Yeah. But probably they knows it but want to save the day
Know*
Is it that common in Asia like Japan, South Korea China that there are illegal loans/scams with high interests being offered to desperate stupid people???