What do debts do?
Most people here in the philippines have more debt such as house, loan, cash, gadgets, in store and many more.
But do you know that credit is not good especially if we are poor and do not have a clear source of payment. But that's what the debt poor cling to.
Especially if a family is eating meal once a day so they really adhere to the debt, this is pitiful but we can't blame them if they are full of loan especially if it is for their food and for their child.
But debt adds to our burden and thoughts, because you work to earn but end up to pay your debt. So the ending you dont have money to held anymore, so your way is just have to borrow again. So it is so hard in that kind of circulation of life. Even those wealthy people have loans at the bank, companies and to their suppliers. How much more those beggar/poor.
But a financial expert says Sir Chinkee Tan is borrowing is not good especially to the poor. So he's advice, if possible dont get any credit unless if it is an emergency. So use your cash for your needs not for wants. I mean you can use your money to your wants but prior your needs before some material things that isnt an important.
Because me, base on my experience debt is not good at all, long ago i tried to get a collateral loan although the payment for it is low, but its weekly payment. so it still hard for me, particular i dont have a stable job but only my online selling. So instead that i earn, i pay it for my loan. It is so difficult when the day comes to your weekly payment, i reach to the point that i need to use my money for some important things that need to pay as soon as possible. So my stress is getting twice to where i can find a money again to pay for my loan.
My weekly payment before is 7$ a week, yeah it is small amount but for me as a poverty its a huge amount. So i only tried it once and after those experience and stress, i never renewed any loan.
So once you have a job now and when you get your salary, do pay your needs in cash and as much possible dont do any debt/credit to avoid stress and burden.
Its so hard when you know that you have loan to pay every week or monthly. So don't ever tried many loans
just to say you're rich or youre wealthy, and then when the time of due, you won't be able to pay. Let's not be too ambitious especially that we know you cant afford to pay your all debts.
Do some savings even 10% of your salary just in case in emergency, you wouldnt worry or afraid to where you can find some money to buy some emergency needs or any bills to pay of. Even how poor you are if you have a willingness to save for the future or for good purpose, then you can do what is impossible without worrying about money matters.
Dont you know that philippines is the top of among contry you have a lots of loans, debt or credit? Yes apparantly it is because most people here in the philippines are full of credit side by side people has a huge amount of loans/dues.