Financial Blog

Debts and loans can either be good or devastating depending on how you use it. Always make sure that you get the best out of your borrowed money.

Fitz Villafuerte, founder of Ready To Be Rich financial blog wrote five tips on how to manage debts and monetary commitment.

When you borrow money, you should use it to buy an asset that increases value over time and has a potential to make your money — this is what he calls the good debt.

If you need P200,000 to start a business, then borrow only that amount, even if you’re eligible for a loan with a higher amount.

Remember that the bigger the amount you borrow, then the more interests fees you pay, the larger your monthly payments are, and the longer you most likely have to pay.

Check your budget and see how much you can actually afford to pay every month. According to him, you should never assume you’ll have more money in the future, and just work within your current income.

Banks and most financial institutions can definitely offer much lower rates. And when it comes to borrowing money, getting the lowest interest rate should be your priority.

In his article, Fitz highlighted various Security Bank products such as SALAD (Salary Advance) for personal use or for lower loan amount, and SME Business Express Loan for big ticket loans — which is perfect for business owners/starters.

After getting the money, keeping track of your spending should now be your priority. Be sure that you’re not splurging your borrowed cash on unnecessary or unplanned purchases. Another thing, make sure to always pay on time to avoid extra charges.

Entrepreneurs who have access to Security Bank’s online platform, Digibanker, should check out the Corporate Utility ePayment (UEP) system to manage bills and check payments.

On the other hand, there’s also Instapay that can help you settle payments with an instant transfer of funds between accounts of participating, BSP-supervised banks. This is a feature within Security Bank’s Mobile Banking App.

Read Villafuerte’s full article here.