Jefanie Genilla
A Quick and Easy Debt Management Guide for Teachers
Teachers are known for their job stability. But this doesn’t always equate to financial wellness considering that many educators here in the Philippines are low-waged. Many also complain about their salaries being delayed. Yes, their job stability grants them more loan options. But this may only lead them to debt if they’re not that keen on managing their finances.
As much as we’d like to help educators get the teachers loan they need, it’s also our goal here at LoansolutionsPH to help them manage their credit.
Here’s a list of to-dos for educators to be on top of their budget and loans:
1. Learn to spot a loan shark
In a recent report published in Manila Bulletin, teachers are easy prospects for loan sharks. Educators should be more vigilant about who they borrow money from. No one else can get you deeper into debt than a loan shark. Check the business registration of the provider you’re planning to reach out. Ask them if you can visit them in their office. Loan sharks usually don’t have a physical office to show because they’re illegal.
2. Use online tools to track your expenses
You can start using one of these top 7 free, easy-to-use budgeting tools to keep track of your expenses. This will allow you to adjust your budget and cut down on some of your expenditures if you found out you’re spending more money than you’ve earned.
3. Get over the “loan is norm” notion
The main principle to financial wellness is to live below your means. Taking out a loan should only be a solution if you’re really in emergency situations or if you’re planning for a home or auto purchase.
4. Opt for good debts
These include student, home and business loan. These types of credit allow you to increase your net worth and expand your asset list. Bad debt includes credit cards and auto loan because these don’t create value. Yes, a car can be considered one of your assets, but it will depreciate over time. Plus, the maintenance cost you have to pay to keep it in top shape.
5. Pay off your bad debts fast
If you really have existing bad debts, better pay these off as fast as possible. This is to direct your incoming money the right way. The basic principle for debt reduction is to minimize your spending and direct the money you’ve saved to your credit payments. However, the crucial task you need to do first is to identify your expenses and find low-cost, if not free, alternatives to it.
Like the rest of us, educators can go a long way with their salary if they only avoid getting into bad debts and unnecessary expenses. The financial hacks above can help a lot in managing debts. But if you like more expert tips, get in touch with our financial consultants here at LoansolutionsPH. They can facilitate your loan application, if you need any, or refinance your existing high-cost loan to take advantage of a low-rate offer.
