I scoured my archives for a solo pic of myself and found out I didn't have much. This one is courtesy of my 3yo Jake and taken in our condo. Ganda ng background... mga labada!
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If you are NOT easily offended about money-related issues, then feel free to read on.
Do you know of anybody who does not have any financial obligation? I don't. Most people I know have some form of loan, be it personal or for business. Nothing wrong with it right? Otherwise, there's no business for banks and lending institutions.
Well, if people only settle obligations in full as they fall due, then yes, everything's okay. If it couldn't be helped and one settles on installment or a special arrangement, to me, it is still okay. If finances are really tight and there's difficulty making both ends meet, one could just be upfront about it. That is still understandable.
The problem lies when one simply RENEGES and REFUSES to pay. It destroys business partnerships, friendships and one's financial credibility. The troubling part is, tongues start to wag. Pinag-uusapan na in inner circles and even out...Nakakahiya...
Pretend for a moment there's a friend seeking your financial advice. What tip/s would you share?
hi linnor. agree with you, sa sobrang hirap ng buhay ngayon, i rarely know of a person who doesn't have debts.
ReplyDeletethere's a saying: wala naman nakukulong sa utang. sounds a sensible and smart financial philosophy right? but really, wala naman masama if one cannot pay right on time, it's just a matter of informing the creditor that he/she can't before the due date. but refusing to pay for debt na napakinabangan na is something else. that's definitely unfair for the creditor naman.
HI FENG!
ReplyDeleteIf there's a pressing reason why one couldn't settle her obligation on time or fully, then that's not so bad.
Somebody I know is rumored to just walk away from her debts even if she could very well afford to pay (she runs a successful business). If this were true, then it's sickening. You're right, it's definitely unfair to the creditor. :(
kami, walang utang... er, yata (hehe, hindi counted yung utang sa parents, di ba? ;) )... the downside, is, wala rin kaming big acquisitions.
ReplyDeletemy advice? live according to your means. kung ano lang ang kayang mong bayaran, be satisfied with that. of course, ok lang ang may utang, but you have to have a concrete plan on how to pay off your debts as soon as you can... para pwedeng umutang ulit, hehe ;)
its good to have some form of loan and credit...it builds up character and of course credit history.
ReplyDeletecharacter - since it allows you to be more disciplined and you get to know how react in certain situations, especially due dates...do you scream? are you composed? etc.
here in Canada, its important to have some form of credit, kundi when you really need it, you dont get much or you cant borrow much kasi di ka pa tested borrower....
so borrow within your means - is what i will say...and yes, world peace
It's a big penalty here in the US if you can't pay your debts on time. Your credit gets flagged, your interst rates go up, when you need it everyone can see your bad credit history and won't extend you any money. You can even get possessions taken back.
ReplyDeleteMy advice, pay on time. If it's a personal loan? Say bye-bye to your money. There's an old saying, only loan money to people if you're prepared never to see that money again.
i agree. marami talagang relationships ang nasisira dahil sa pambabalasubas. and i agree also that we have to borrow within our means, kahit pa credit card yan or business loan or palista sa sari-sari store. ang advice ko lang: magbayad! kahit pa it takes 50 years, kahit papiso-piso lang, sikapin pa rin magbayad. sa creditor, malaking bagay yung makita nila na may effort tayong tuparin ang ating mga pagkakautang kesa wala. also, if there's one thing i've learned from working in a bank, its: not to use your family's home as collateral for any utang. kahit lubog kayo sa utang, at least secure ang titirahan ng pamilya. yun lang po :)
ReplyDeleteit's a fact that between the ages of 20-30 is struggling financially. it's nothing to be ashamed or embarrased about, it happens! that's life.
ReplyDeletei gotta agree with "BORROW OR SPEND W/IN YOUR MEANS" talaga.
HI RUTH!
ReplyDeleteKorek! Without a concrete plan to pay off debts, paano pa pahihiramin ulit di ba? When I borrow (usually for business expansion), it's usually from my parents or Tita. Tapos I make it a point to pay the principal in PDC's for 6 months with a 1% interest/mo.
Daig ko pa ang interest ng time deposit. Hehehe.
HI JUNNIE!
Yes it's actually easier to borrow in North America if you are able to establish a good financial credibility. Pero kung walang discipline to settle promptly, mabilis din ma-blacklist. :)
HI PINAYHEKMI!
That's the problem if it's a personal loan, the borrower could easily take advantage and just abscond or "disappear".
I heard of one who will befriend a prospective business partner and then leave the hapless "partner-friend" waiting for payment (for some loan or profit share) that will never come. Parang feeling na-swindle tuloy ang "partner-friend".
HI MEEYAGIRL!
Uy that's a valuable tip about not using the family home as collateral. It's common in Pinas to attach agad the real estate as form of collateral vs. loans. That way, walang katalo-talo ang bangko. :(
Eto kakaiba, meron naman akong kilala na pati gift/s na binigay ng kanyang asawa sa kapatid, binibilang pa nya as pautang! Hahaha!
HI SHERY!
ReplyDeleteAko din, agree dyan. And one more tip, if using the credit card, it is best to pay it in full everytime. Nakakabaon ang 3-3.5% interest/mo.
I'm proud to say (God willing), I'm clean with my credit cards. :D
Generally speaking, a person in his right mind would only spend what he can afford. But many a times, people overspend beyond their means and that's when they get in trouble. Take credit cards for example. So many have been "victimized" by its fast/instant access of funds only to realize later that they've gone beyond the limit. Next thing they know, they're in a bind and can't get out.
ReplyDeleteI can cite many other circumstances how people ruin their lives because of money; bottom line is, we just have to be more sensible dealing with money matters.
HI BEBOT!
ReplyDeleteThat's the operative word - "sensible" in dealing with money matters. To add, one must be responsible enough to settle incurred obligations.
I will impress upon him this adage: "Don't give him fish; teach him how to fish!"
ReplyDeleteMoreover, if he has already exhausted all means, then give him or lend him the funds or the help he needs.
That's a recognition that we extend Christ's unconditional love to one anoter. Even if we feel that the other person does not deserve our love, we must go through our own passion, death and resurrection to love the unlovoable because of God's unconditional love for us! Amen?
Pautang naman dyan, please! :-)
HI PAPARAZZI!
ReplyDeleteHahaha! Inumpisahan sa seryoso sabay banat ng biro... Nagbibiro ka lang diba? Or ayaw ko lang seryosohin yung last line? :)
Ako nga dapat ang umutang sa inyo ni Mama eh. Nyeheheh. Joke lang.
Seriously, kasi nga di ba, parents and siblings (in a normal family), are the ones who readily assist their kin in times of need? May mga family kasi na hindi ganoon. Yung iba, ang alam lang gawin eh magbilang, magselos sa good fortune (not necessarily financial) ng iba or manlait at manirang-puri. Masama yun. Buti sana kung hindi sila edukado. Hehehe.
See you in Cebu next week! :D
hi Linnor. "running away for debts even if one can afford to pay" --- nakakapang-init naman ng ulo yan. grrr..!
ReplyDeleteby the way, i'm dropping by here to greet you a very Happy Mothers Day in advance. Sunday will be quite hectic, pampering day for us so I thought it's best to advance my greeting. let's all be proud to be Moms, right?
HI FENG!
ReplyDeleteAkala ko nga yung walang pambayad lang ang tumatakbo sa utang, pero pati pala yung ibang "can afford" marunong din mambalasubas. Ngeks!
TGIF! Happy mothers' day to you as well, in advance! ;)