Having to deal with debt can be frustrating and challenging. A study conducted by Manulife
revealed that approximately 41% of Filipinos carry debt and are having trouble getting out of it.
No matter how stressful it feels like, being debt-free is possible. Here are some practical ways
you can do to start getting out of the debt-trap.
Be financially literate
The Bangko Sentral ng Pilipinas (BSP) stated last year that a typical Filipino adult can only answer
three out of seven questions pertaining to finances correctly.
Those who’ve had some form of money management exposure during childhood are more likely
to make better financial decisions in the future.
But it still isn’t too late to boost your financial literacy. From attending financial seminars to
checking out several online resources, you can start as early as today to make a difference when
it comes to matters dealing with money. And when it comes to debt, you’d want to make sure you
have the right financial resources or tools in addressing it properly.
Change your unhealthy spending habits
You can start from knowing how much of your money goes to expenses. After you’ve recognized
your expenses, shift your perspective towards saving opportunities. From there, you’ll get a
clearer view on how you can pay off those debts of yours!
Filipinos tend to just “give”. This rings true especially during the holidays. From splurging on gifts
for friends and family to giving in to the temptation on buying something for yourself, there just
seems to have so many expenses to consider! Sure, it’s a time to celebrate. But is it really worth
it when it results to forcing you to borrow more money in the end?
Dedicate earnings to pay off debt
Once you’ve recognized and acknowledged that you need to change your unhealthy spending
habits, you can now prioritize on dedicating a specific amount to pay off your debt. After creating
a budget that considers your typical expenses, include an entry that will solely be put to use for
Additionally, the budget that you’re working with will also give you a good idea on how long it’ll
take for you to get out of debt. Use this as a motivating force for you to stick to the plan.
Start looking for other alternative source of income
Your income from your day job may not be enough to pay all of your debt. But this doesn’t mean
you can’t get out of this trap. Sure, it can be a struggle, but you can start doing your side-hustle
or part-time job to help you augment various expenses. You can sell online or monetize your skills
and talents. There are also online jobs available where you can apply as a freelancer.
Opportunities are out there; you just need to be on the lookout so you won’t miss what’s for you.
Start getting out of debt today!
Paying debt can be a struggle, and trying to escape from your financial responsibilities can get
you into a huge trouble. Stay driven, stick to your plan to get out of debt, and focus towards the
end goal of financial freedom.