Practical advice and strategies on paying off debts minus the stress

For many Filipinos, debt is a fact of life and a never-ending cycle of borrowing money to pay off loans to borrow more money. You may have felt that paying off your debt is an impossible task, but there are simple strategies you can do today to break the chains of debt bondage.

Here are three that all financial professionals recommend:

1. Stick to a Budget. With a budget, you know exactly where your money is going. A good budget plan includes how much you make each month and the essential things you need to pay for, such as rent, utilities, food, and loans. Following this plan will prevent you from missing out on loan payments and being charged high interest rates.
2. Reduce Monthly Bills. Consider ways to reduce your monthly bills. The best way to do this is to separate what you need from what you want. It’s a good idea to reduce spending on things you want (or things that are nice to have but not essential to your life), such as a new phone or a new bag. Doing so will lower your monthly expenses so that you have more money that can be used to pay off your debt.
3. Keep saving. A big misconception is that you should stop saving while paying off your debt. However, saving should be considered essential in your monthly budget – you should always allocate a part of your monthly income to saving. This helps build an emergency savings account for unexpected events.

Most importantly, keep moving forward even when it seems difficult. Paying off your debts is an important step in improving your financial health and ensuring a better life for you and your family.