Case study #3: Easy cash loans dependencies
This is a case study on easy cash loans that happened to someone who was living in the same block as me. This is a very common real life story of how one person's life suddenly changes for the worse because of those easy cash loans and quick money loan. This person who I will refer to as Mike, lives just down the street from me. Mike was in his early 30s, had a great job as a real estate agent, was living in a house that he bought by himself and drove a Mercedes. His income was dependent on the sales he made as a real estate agent, but on average, it was much more than what the usual household income made.
With his income, he was living the good life, always having parties and barbeques at his place for his friends. And from the way he dresses up and accessorize, everyone could clearly see that he was living his life in luxury. But then, a bad habit that many rich people develop, happens. Gambling. Mike was no exception to this, expect he couldn't control his losses and gambling urges. He was introduced to an illegal gambling den by one of his friends.
It was said that on his first three days, Mike made about $25,000 in winnings. It made him feel that gambling was easy, so he raised his bets. But then, he started to lose. After just two days, he lost all the amount that he had left from his winnings. Being stubborn and still thinking that he could win back all of that money, he continued gambling. After just one week, he had accumulated losses that were so huge, he started borrowing money from his friends. This situation continued for three whole months.
After those three months, and Mike's gambling addiction still intact, many of his friends had refused to borrow him anymore money. The parties at his house stopped, but almost every night, he would still go out to that gambling den to gamble some more. Just when he had run out of cash for his gambling, the workers at the den informed Mike that he could apply for one of those easy cash loans from them to continue gambling.
It was only then did Mike realize that the gambling den was operated by a loan shark. Although he knew of the dangers of borrowing from them, his addiction to gambling got the better of him, and he took one of those easy cash loans from them. He borrowed $2000 from them and asked how much would he have to pay them back. They told him that he only had to pay back $2500. Considering his income and the low interest rate, Mike agreed to take their easy cash loans and sign the contract immediately so that he could continue with his gambling.
After only three months, he had continued to borrow those quick money loan from them, that his debt was now $30,000. He had to pay them a total of $37,500. When he arrived to negotiate his loan payments, he found out that he had been fooled. Because he didn't read the contract properly, it was only then did he realize that they would only charge $2500 for his $2000 loan if he paid that amount on the same day as he borrowed it. Instead, now he has to pay them an interest rate of 25% for every month for ten months, for all of his easy cash loans. That meant that Mike would now have to pay them $10,500 every month with the total being $105,000 at the end of the payment.
Mike tried to negotiate with them, but since they knew that Mike was a rich person with good income, they refused to lower the interest rates and the payments. Mike was left with no choice but to make the payments. Because of his gambling earlier on, Mike didn't have any money left in the banks, and because of his constant borrowing from his friends, none of them wanted to borrow him anymore money. He was left with no choice but to work hard to make that amount. But with only one week left before he had to make the payment, he wasn't able to earn that much. Now the loan shark sank their tooth in even further. They told him that since he failed to make his monthly payment for his loan, they would add that amount to his total, and he would have to pay a new monthly payment.
Earlier he owed them $30,000 and had to pay them $10,500 each month for ten months. Now they added the $10,500 that he had failed to pay, into his debt. Which meant that he now owed them $40,500 and he now had to pay $14,125 every month for the next ten months. Now knowing that he was in trouble, Mike worked even harder to come up with the amount. But at the end of the month, $14,000 proved too much for him, considering the drop in real estate sales. Although he wanted to pay $6,000, the loan shark claimed that they will only accept payments that are in full. Again they added up his debt.
Now Mike owed them $54,625 and he had to pay them $19,118.75 for every month for another ten months. Because of borrowing an easy cash loans for $30,000, now Mike would have to pay them a total of $191,187.50 in total. By the end of the third month, Mike once again failed to come up with that amount. This time, the loan shark took a different approach. This time, they claimed his car as collateral. Seeing no way out of it, Mike agreed to it. They claimed that the car was a second hand and will only cost $60,000 although in the Asian market, it was worth much more.
Instead of reducing the overall payments, from $191,187 to $141,187, and paying less interest, they made Mike pay the exact same amount of $19,118.75 for every month, except that now it was for 7 months instead or 10 months. Their main goal was to make sure that Mike could not afford the payment for his easy cash loans, so that his debt will increase even more. And from there on, they said that they would except any payment, even though it is less than the expected payment. If Mike was to pay $6000, they would deduct it from the monthly total of $19,118.75 and the balance would be added up to the total again. They did this because they knew that it would be very difficult for Mike to pay them the full amount, so they wanted to get any cash that Mike could come up with.
It was only then did Mike really realize the situation he was in. Because of borrowing one of those easy cash loans for $30,000, his entire life would be affected and he would almost never be able to pay finish his debt. It was then that he decided to do what many others have done. He decided to sell his house and move away to another state or country where he could start a new life and a place where those loan sharks would not be able to find him. It was just before he left that I first talked to him, and he shared what had happened to his life.
He shared his story with me and my friends because he wanted others to be aware of the dangers of those easy cash loans. That was also the last time I have ever seen Mike. I've also included this story in here because that was the reason why Mike shared his story with me, so that other people will not get tricked by those quick money loan and easy cash loans anymore and the tricks those loan sharks use.
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