Why Millions Of Filipinos Pay 120% Interest On A Loan

If you borrowed money in the Philippines today, you could end up paying 120% interest per year. Not from a bank. From an informal lender on the street. The system is called 5/6 and it has been running in this country for over a century. Borrow five, pay back six. No paperwork, no collateral, no bank involved. Just cash and a daily collection route. In this video I break down why borrowing money in the Philippines is so expensive, how the 5/6 lending system actually works, why half of Filipino adults still don't have a bank account, what happened when online lending apps made things even worse, and what the government is doing about it now. ✍️ Take 10 seconds and sign up for my free California Expat Letter: californiaexpat.com/newsletter Each week I send a short email with a few things I've learned and noticed about life in the Philippines, the small moments that stuck, and the kind of thoughts I can't always fit into a video. Easy to read over coffee, and hopefully good for a smile too. 🧳 Book a business consultation with John For business, outsourcing, BPO, marketing, or consulting-related questions: https://calendly.com/john-smulo/busin... 🇵🇭 Book a consultation with John about the Philippines For non-business related questions about living in, moving to, or understanding the Philippines: https://calendly.com/john-smulo/calif... 🇵🇭 Need help with visas or starting a business? Get a FREE consult from C&G Consulting: https://cgconsulting.ph/start 📱 Join the Facebook Group:   / californiaexpat   💸 How I send money to the Philippines: https://wise.com/invite/dic/johns3021 📩 General (non-business) questions: [email protected] #philippines #expatphilippines #californiaexpat #lifeinthephilippines #56Lending #FinancialInclusion #PhilippineEconomy