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Published on 22 Aug 2025 by Queen S
Working in Singapore offers domestic helpers a great opportunity to earn, save, and build a better future for themselves and their families. But along with this opportunity comes the need for financial awareness. Unfortunately, scams, illegal moneylenders, and bad loans can put helpers in difficult situations, sometimes even leading to debt traps.
At Ministry of Helpers, we care about your financial safety and want to help you make informed decisions. Here’s your guide to avoiding scams and bad loans.
1. Recognise common financial scams
Scammers often target domestic helpers because they know many are far from home and may be unfamiliar with local laws. Some common scams include:
- Fake recruitment agencies asking for upfront fees or personal information.
- Online job or investment scams promising “guaranteed earnings” or “high returns” that are too good to be true.
- Fraudulent moneylenders offering loans without proper documentation or licenses.
Tip: Always verify the legitimacy of agencies or lenders through official channels before committing.
2. Understand the risks of illegal moneylenders
Borrowing from unlicensed moneylenders is risky because:
- They often charge exorbitant interest rates, sometimes over 30% per month.
- They may use threats or intimidation to collect debts.
- There is no legal protection if disputes arise.
3. Avoid taking high-risk loans
Even licensed loans can become risky if not carefully managed. Avoid loans that:
- Require excessive collateral, like your passport.
- Have unclear repayment terms or hidden fees.
- Promise quick money for small tasks, which may be scams.
Tip: Always read the loan agreement thoroughly, ask questions, and keep a copy for your records.
4. Protect your personal information
Scammers can steal your identity if you share personal details such as:
- Passport number
- Bank account details
- Passwords or OTPs
Tip: Never share your personal information online or over the phone unless you are certain of the person’s legitimacy.
5. Seek help from trusted sources
If you’re unsure about a loan or offer, seek advice:
- Ministry of Helpers: We provide guidance on safe financial practices.
- Official agencies like the Ministry of Manpower (MOM) for work-related issues.
- Friends, family, or community groups you trust.
Tip: It’s always better to double-check than to risk falling into debt traps.
6. Build a debt-free future
Being cautious with your finances now will pay off in the long run. Some smart steps include:
- Open a savings account and save regularly.
- Use legal and low-interest loan options if needed.
- Learn about budgeting to manage your earnings effectively.
- Take advantage of Ministry of Helpers’ financial resources and training to build skills for a stable future.
Your hard work deserves protection. By staying alert, verifying information, and making informed financial choices, you can avoid scams and bad loans and secure a bright, debt-free future.
At Ministry of Helpers, we’re committed to helping you navigate your financial journey safely. Remember, if it sounds too good to be true, it probably is. Always seek help, and take steps today to safeguard your tomorrow.
You might be interested in:
How to Create a Monthly Budget as a Domestic Helper
How to Apply as a Helper Online
What to Do If You're Struggling to Understand Instructions as a Helper in Singapore
How to Handle Different Parenting Styles as a Nanny or Helper
Laundry 101: Pro Tips for Handling Different Fabrics, Stains, and Machines
Working in Singapore offers domestic helpers a great opportunity to earn, save, and build a better future for themselves and their families. But along with this opportunity comes the need for financial awareness. Unfortunately, scams, illegal moneylenders, and bad loans can put helpers in difficult situations, sometimes even leading to debt traps.
At Ministry of Helpers, we care about your financial safety and want to help you make informed decisions. Here’s your guide to avoiding scams and bad loans.
1. Recognise common financial scams
Scammers often target domestic helpers because they know many are far from home and may be unfamiliar with local laws. Some common scams include:
- Fake recruitment agencies asking for upfront fees or personal information.
- Online job or investment scams promising “guaranteed earnings” or “high returns” that are too good to be true.
- Fraudulent moneylenders offering loans without proper documentation or licenses.
Tip: Always verify the legitimacy of agencies or lenders through official channels before committing.
2. Understand the risks of illegal moneylenders
Borrowing from unlicensed moneylenders is risky because:
- They often charge exorbitant interest rates, sometimes over 30% per month.
- They may use threats or intimidation to collect debts.
- There is no legal protection if disputes arise.
3. Avoid taking high-risk loans
Even licensed loans can become risky if not carefully managed. Avoid loans that:
- Require excessive collateral, like your passport.
- Have unclear repayment terms or hidden fees.
- Promise quick money for small tasks, which may be scams.
Tip: Always read the loan agreement thoroughly, ask questions, and keep a copy for your records.
4. Protect your personal information
Scammers can steal your identity if you share personal details such as:
- Passport number
- Bank account details
- Passwords or OTPs
Tip: Never share your personal information online or over the phone unless you are certain of the person’s legitimacy.
5. Seek help from trusted sources
If you’re unsure about a loan or offer, seek advice:
- Ministry of Helpers: We provide guidance on safe financial practices.
- Official agencies like the Ministry of Manpower (MOM) for work-related issues.
- Friends, family, or community groups you trust.
Tip: It’s always better to double-check than to risk falling into debt traps.
6. Build a debt-free future
Being cautious with your finances now will pay off in the long run. Some smart steps include:
- Open a savings account and save regularly.
- Use legal and low-interest loan options if needed.
- Learn about budgeting to manage your earnings effectively.
- Take advantage of Ministry of Helpers’ financial resources and training to build skills for a stable future.
Your hard work deserves protection. By staying alert, verifying information, and making informed financial choices, you can avoid scams and bad loans and secure a bright, debt-free future.
At Ministry of Helpers, we’re committed to helping you navigate your financial journey safely. Remember, if it sounds too good to be true, it probably is. Always seek help, and take steps today to safeguard your tomorrow.
You might be interested in:
How to Create a Monthly Budget as a Domestic Helper
How to Apply as a Helper Online
What to Do If You're Struggling to Understand Instructions as a Helper in Singapore
How to Handle Different Parenting Styles as a Nanny or Helper
Laundry 101: Pro Tips for Handling Different Fabrics, Stains, and Machines