Brian Jeffrey
Social media debt groups like “Expert Debt Dodging – Clearing Bad Debts (FE, Home Credit, loan apps)” with 132,000 members and “Group for Dodging Loan Apps and Coping Strategies” with 107,000 members offer advice and support for avoiding loan repayments, often promoting easy-to-get loans with no income verification or collateral. However, this can trap individuals in a cycle of accumulating high-interest debt.
Though some believe that financial companies won’t pursue debtors, lawyers warn that companies can take legal action against defaulters, with consequences like fines, asset seizures, and criminal charges. Even old debts can lead to serious legal trouble if left unresolved.
To stay clear of debt complications, it’s advised to borrow sensibly within means and only when necessary. Being cautious about borrowing, especially from predatory lenders, can prevent falling into a debt spiral.
Recent data from the Vietnam Banks Association reveals that consumer loan debt from financial companies amounts to 138.8 trillion VND, contributing 5% to total consumer credit debt, which is nearly 2.9 quadrillion VND. This indicates a significant portion of the economy’s credit debt.
The economic downturn in 2023 affected many Vietnamese workers, leading to income reductions and financial challenges. About 72% are open to bank loans, but requirements like income proof and good credit history hinder 52% from accessing them, especially those in informal employment.
Pawnshops, along with banks and financial institutions, offer borrowing options. Proper understanding of borrowing responsibilities and judicious loan decisions are crucial to prevent debt overload. Lenders advise borrowers to have a clear repayment plan and only borrow when essential.
