Drop by Drop: the asphyxiating illegal credit system that forced a Colombian mother to commit suicide

February 7, 2019

Jessy Paola Moreno Cruz has committed suicide, along with her son, for not being able to deal with the debts of the clandestine method to access the first house.

The hope of avoiding a tragedy turned into despair and anguish. Despite police attempts to Ibague, and even the desperate request of his son, Jessy Paola Moreno Cruz I've already had his decision made. "Mom, do not throw yourselfThe creature almost cried in tears before the woman threw herself, with her firstborn, from a bridge in the Colombian city.

The reason that pushed this 30-year-old woman to commit suicide is a name, a name and a trend that worries the country's authorities: the illegal credit system called "drop by drop"This is the credit method that the poorest families have access to find their first home, but the method of payment is so suffocating that the solution is not given to anyone.

What is this system? The money is delivered immediately and there are not too many requests to become a creditor of one of them. Those who benefit from it only sign a document and give them immediate money.

A woman jumped from a bridge with her son in her arms: "Mom, do not throw yourself"

The problem arises when interest rates soar, since they oscillate between 20% and 40% per month, according to the Colombian personal finance page. If the debtor is in arrears, interest is charged and intimidation is present at the time of recovery.

"In one example, if, for a year, they lend him 480 dollars with a debt interest rate of 20% per month, I would end up paying about $ 108 monthly fee. In the end it will end pay close to $ 1,306 for creditbut in the sole interest $ 823. But this, only, if its "drip"You load every month, every day it's a lot worse, and it gets more complicated if you're late," says the Colombian website.

"You see that two of the recently presented (suicide) cases involve debts and something monstrous, the "drip". The "drip" has become a terrible situation that extorts people, intimidates, blackmail, threat of death, shot at the mayor of Ibagué.

This type of criminal practice tightens the necks of the poorest, to those who have access to business cards or flyers in the stores to offer credit.