In a recent post on the Muflis Bankrupt Facebook page, an anonymous man (let’s call him Amirul) shared his story about how his financial situation spiraled out of control, highlighting the dangers of easy access to loans.

Seeing Loans as an Opportunity Amirul explained that his decision to take out a personal loan stemmed from how easily he could secure one as a government employee. He was initially excited about the prospect of having a large sum of money at his disposal.

“I was thrilled to get a loan back then. It felt great to have so much money, especially since it was so easy given my position. But that’s when my regret started.”

Continuously Increasing the Loan Amount

Amirul’s regrets deepened as he began misusing the loans, spending the money in ways he hadn’t planned. He initially took out a RM50,000 loan, but when the funds ran dry, he overlapped it with additional loans from other banks, each time increasing the amount.

“Sometimes I’d add RM10K, other times RM20K, as long as I was eligible, I kept increasing the loan.”

Ending Up with RM200,000 in Debt

Due to constantly switching banks and raising the loan amounts, Amirul’s debt eventually grew to RM200,000. He admitted that none of the money was spent on anything significant or necessary, and it quickly vanished due to poor financial management.

Now facing high monthly repayments, Amirul has applied for debt restructuring and is committed to paying it off.

“I’ve learned that unless it’s absolutely necessary, taking out a personal loan can really weigh you down,” he concluded.