When it comes to managing debt, a little self-control can go a long way.
Without it, even the most well-intentioned financial decisions can spiral out of control, leading to a mountain of debt that’s hard to climb out of.
Just ask one civil servant, whose story of financial free-fall is a lesson in the dangers of easy loans.
M’sian govt servant left with RM200k debt after misusing personal loans
In a post shared within the “Muflis Bankrupt” group in Malaysia, this individual, who preferred to remain anonymous, detailed how their lack of self-control led them down a slippery slope of borrowing.
Initially, they were drawn to the idea of taking out personal loans, enticed by the opportunity to hold a significant sum of money.
“As a government employee, I knew I could easily get approved for a loan,” they explained.
“And I wanted to feel what it was like to have a lot of money.”
‘I didn’t have a plan for how to use the money‘
But as the saying goes, easy come, easy owe.
Because of the ease with which civil servants can secure personal loans, the individual found themselves taking out loan after loan, without fully considering the consequences.
“What started as a RM50,000 loan quickly grew,” they revealed.
“Whenever I ran out of money, I overlapped to another bank, borrowing more—sometimes RM10,000, sometimes RM20,000—as long as I was eligible.”
By continually switching banks and overlapping loans, their total debt eventually ballooned to a staggering RM200,000.
The realisation of just how deeply they were in debt hit hard, especially when there was little to show for it.
“The money was gone, and I had nothing meaningful to show for it. I didn’t have a plan for how to use the money, and now I’m stuck with these high monthly payments.”
Faced with mounting financial pressure, the civil servant had no choice but to seek a restructuring of their payment plan with the bank, hoping to align their debt repayment with their budget.
“I applied for a restructure with the bank to manage my monthly commitments. It’s going to be a long road, but I’ll keep paying until it’s done.”
Reflecting on their experience, they offered a piece of advice for others:
“Unless there’s a very urgent need, don’t take out a personal loan. It can easily become a burden if you’re not careful.”
