" Rapid Cash: Reasons Behind the Dark Turn of Hong Kong Residents Resorting to Loan Sharks"
In the hustle and bustle of Kowloon, a common tale unfolds for many – that of Fai Chan, a grandson who inherited his granny's humble 377 sq ft apartment valued at a mighty HK$3 million in 2023. But his joy was short-lived as the Housing Authority demanded a steep HK$1.2 million premium to seal the deal. With his credit score tarnished from past bankruptcy, traditional banks shunned him.
In the city where the underbelly of finance pitches its tent, Fai found solace in two well-known finance companies. Each lent him HK$600,000, enough to pay off the Housing Authority, but the 40% high annual interest rate over 10 years turned out to be a brutal curse. To service these exorbitant monthly payments (usually swallowing his entire salary of HK$20,000 to HK$30,000), he had no choice but to seek loans from smaller, less regulated lenders – digging himself deeper into a hole.
When the crushing monthly payments became unbearable, Fai faced a desperate situation. But in the realm of shady finance, there's always another shadowy figure lurking in the corner. Lesser-known lenders saw an opportunity, offering loans to help Fai survive another day. However, these loans came at a steep price, compounding his financial woes.
It's a grim reality that many face when inheriting real estate with a poor credit history. The weight of outstanding debts and property maintenance costs can lead to spiraling debt. But there's hope. Options include selling the property to pay off debts, negotiating with lenders for more flexible payment terms, or seeking legal and financial advice for a well-planned estate arrangement. tragedy can often lead to practical solutions, helping future generations avoid this financial maze in the complex world of inheritance and credit.
In Fai's quest for financial relief, he relied on personal-finance solutions, such as securing loans from unorthodox debt-management providers. Despite temporarily alleviating his troubles, the high-interest rates on these loans exacerbated his financial hardships. With the possibility of selling the inherited property to manage debts, Fai may find a way out of this financial labyrinth and provide guidance to future generations navigating the intricate domain of personal-finance and inheritance-related challenges.
