The world is currently facing severe inflation. In the high cost of living conditions, it is indeed challenging for individuals and families with school-going children to sustain life in the capital city of Kuala Lumpur today.
It is not surprising that many public servants are facing severe financial problems due to the burden of high monthly debts, especially in a city with a high cost of living like Kuala Lumpur. This may be attributed to the fact that public servants find it easy to obtain loans, leading them to take advantage without considering the long-term consequences.
Such is the situation faced by Mr. Amran, 40, a native of Sarawak who migrated to Kuala Lumpur with hopes of building a better life and also to assist his mother who lives in the village in raising his siblings. However, unexpectedly, the planned life took a turn for the worse.
Mr. Amran first set foot in Kuala Lumpur at the age of 30 when he successfully secured a job as an Auxiliary Police in Putrajaya. The job offer was initially a great pride for Mr. Amran's family, as their eldest son left Mukah, Sarawak, to start a new life and seek livelihood in Kuala Lumpur.
It all began with an initial loan taken by Mr. Amran. Upon arriving on the Peninsula, he had no permanent place to stay and no transportation. Armed with only RM1,000 in savings brought from the village, it was not sufficient to pay the room rental deposit and commuting expenses to work.
Mr. Amran shared his problems with his senior colleague, who happened to be from Sarawak as well, and they quickly developed a close friendship. His friend assured Mr. Amran not to worry, as being government servants, they could easily obtain loans from credit cooperatives. Convinced by his friend, Mr. Amran applied for his first loan from the credit cooperative, amounting to RM5,000 with a repayment period of 2 years and a monthly installment of RM250, deducted directly from his salary. At that time, he didn't think much about it; all he had in mind was that the money could be used to buy a motorcycle worth RM2,500, pay a room rental deposit of RM1,100, and he still had remaining funds. With a monthly salary of RM1,500, he considered the monthly repayment of RM250 not to be a problem.
After working for over two years on the Peninsula, Mr. Amran planned to buy a house as his first asset, considering his salary had increased. As a government servant, his loan application was easily approved. After successfully purchasing a house, Mr. Amran felt the need to buy a car as well, as using a motorcycle alone was not practical.
Mr. Amran's life in Kuala Lumpur went smoothly until one day he received news that his mother in the village fell ill and required a significant amount of money for surgery, totaling RM18,000. Desperate to find funds for his mother's medical expenses, Mr. Amran seized the opportunity when bank agents visited the government office to promote their latest programs. He inquired about financial loans to cover his mother's treatment costs.
After discussing and being advised by an agent, Mr. Amran chose to take a loan of RM50,000 with a monthly repayment of RM800. Unfortunately, his mother's health deteriorated after the surgery, and a few months later, she passed away. Mr. Amran had to bring his two younger siblings who were still in school to Kuala Lumpur because there was no one to care for them in the village. Despite his increased salary to RM2,800 per month, Mr. Amran's finances remained problematic due to his high commitments. He had to pay monthly installments for his house loan, car loan, and personal loan. His life became more complicated, with insufficient income to support himself and his siblings, coupled with additional monthly commitments.
Mr. Amran also tried to apply for another personal loan, but this time his application was unsuccessful due to his already high commitments and the issues of bad debt and bad credit he was facing. Eventually, Mr. Amran became desperate and sought a way out of the financial crisis he was facing. Follow the next part to find out how Mr. Amran worked to solve his financial problems.
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