One Hundred Dollars. $100.00.
What if that is all you are able to spend out of your salary each month? Image it. You’ve worked for the whole month, its payday, and all thats left for you to spend after deductions is $100, what would you do?
Early in my working life while working for a local bank I sat with a loan officer for two weeks in a job-shadowing/work experience capacity. During that time I saw many Bahamians apply for loans for various reasons; vacations, school fees, cars, furniture etc.
But what I never forgot was the account officer turning to me in disbelief/disgust after one applicant left and saying, “these government workers is something else nah, this woman only getting $100 out of her salary and still looking for another loan!”. I thought she had misspoke, but she confirmed that yes the lady was getting $100 from her paycheck at the end of each month.
She then went on to explain to me what the Debt-Service-Ratio is and how the banks use it to determine who they loan money to.
I never forgot that experience. Every time I hear an advertisement offering zero down to government workers it comes to mind.
I’m sure salary deduction was meant as a way of helping out government workers, but it has had some serious side-effects.
Why are Government Employees Always Broke?
Have you ever wondered why most police officers, defense force officers and some other government agency workers are always crying poor mouth?
Well, As soon as they get their government job they can walk into certain financial institutions and walk out with a 50,000 personal loan, they can walk into certain furniture stores and with no money down, walk out with thousands of dollars in furniture and appliances, and the list goes on.
So lets say you are a government worker you have taken advantage of several of these juicy offers for government employees. 80% of your salary is gone before you pay school fees, light bill, phone bill, groceries, or even put gas in your car.
Now ask yourself, how hard would you think about doing someone a “favor”?
Sure we can say that these government workers need to be more responsible with their money, but really, how many Bahamians are?
The reason government employees can go into a furniture store or car lot and walk out with whatever they want is because the loan is guaranteed by salary deduction.
There is no way the company can lose. The Debt-Service- Ratio goes out the window because the risk of default on a loan is minuscule and some companies are ruthless in taking advantage of this.
I believe this Salary Deduction scheme is the reason for a lot of corruption in government agencies. The Government has a policy in place that is essentially responsible for the corruption of its own employees. A policy that should be ended as soon as possible in my opinion.
What are your thoughts on Salary Deduction and Government Corruption?