Why is informal debt soaring?

Let's analyze why informal debt

So strong that almost the whole country was sucked in...

1. Not enough income, expenditure (but living expenses jump)

• Same salary for many years, but more expensive things every month

• Food, car, lighting, house rent are up.

• Many people have to "take the next month's salary" for this month.

✔️ result is that it doesn't spin in time → must recover.

2. Hard access to loans in the system

• Strict banks

• People without slips, no credit, independent occupation = unsalvageable

• Even people with credit cards are reduced.

✔️ informal debt became a "temporary survival."

3. The debt in the system is overflowing.

• Credit cards, personal loans, homes, cars

• Many people installment everything until there is no limit left.

✔️ lack of cash flow, rely on informal loans instead.

4. Informal debt = redundant debt cycle

• 5,000 loan, 6,000 must be recovered in 7 days

• In time to spin, you have to "continue to borrow to pay the same debt."

✔️ became a chain debt. The loop didn't end.

5. Lack of financial knowledge + plan is not

• Many people do not know how to manage revenue.

• Do not distinguish "necessary" and "wanting."

• No emergency reserves

✔️ when there's an emergency, almost always recover.

6. The public sector has not solved the "revenue structure."

• Resolve reasons such as issuing temporary debt relief loans

• But public income did not increase.

✔️ this problem back and forth.

📌 brief summary.

Outbreak informal debt = results from "high cost of living + low income + hard access to systemic money sources + weak personal finance"

- - -

How to get out of informal debt?

1. "Stop bleeding first" (Do not borrow more to use old debts)

If you continue to spin debt to close the original debt =, you will not fall out of this cycle at all.

✅ How to do

• Stop borrowing immediately (even when difficult)

• Try talking to informal creditors for an extension or pay.

• If intimidated or blossoms more than 15% per month → Call 1359 (Debtor Assistance Center)

• There are many provinces where "informal debt mediation centers" actually help.

2. "Total debt to the whole picture."

How many people don't even know how much they owe?

You have to visualize it and start placing the sequence of "which should be closed first?"

3. "Sequence the debt - shut up at the expensive blossom first."

It's called "Debt Snowball / Debt Avalanche."

✅ If there are many creditors,

• Pay the minimum for all of you first

• Then pour all the rest of the money to close the "most expensive interest" debt first.

• When you close it, → the money that paid your creditors goes to you.

4. "Increase temporary supplementary income."

Without more revenue = debt will never reduce.

✅ Easy way to raise extra money.

• Selling online (used items, consignments, food, clothing)

• Get a part-time job / free lance / delivery run

• Use skills such as bookkeeping, job printing, photography, training

The main ✔️ is "Don't choose a debt-solving period job."

5. "Create a new salary system."

All financial behavior must be changed.

If you can't save now, it's good to start with only 5%.

6. "Enter the system debt restructuring program."

The BOT has a program to help "change informal debt → in the system."

✅ Contact at

• Savings Bank / DEC / Welfare Banks

• Debtor Assistance Centre (Tel. 1213 or 1359)

These will help mediate, cheapen interest and have the opportunity to regain credit in the system.

7. "Practice new financial discipline."

Fall out = must not go back

✅. Must be done continuously.

• Daily expenditure revenue records

• Minimum cash reserve of 3 months

• Do not shop emotionally

• No sign / no loan for anyone

• Minimum 1 risk-proof life or health insurance

📌 summarize the concept.

"Informal debt" is a hole where there is no way out if there is still more to recover.

But "this hole has a way up" if you start with the numbers, talk, plan, act, discipline.

# Not planned until # plannotpoor