In today’s fast-paced world, managing finances can be daunting, and unexpected expenses can lead to rising debts.

Most Filipinos, according to the BSP, are or were in debt. According to their Financial Inclusion Report, 47.1% of adult Filipinos have debt. Merely 19% of adult Filipinos do not borrow money at all.

Loans play a significant role in our lives, helping us realize our goals, whether starting a business, buying a dream home, or handling unexpected bills. However, there will be times that we will face challenges, so, if you manage many loans and struggle to make ends meet, consolidating your debts with a salary loan could be a game-changer. 

We will look at eight strategies in this blog article to help you effectively manage your debts and open the door to a future with greater financial security.

Loan Statistics in the Philippines

The lending sector expanded by an astounding P1 trillion in April 2023 as compared to the same month the previous year! This indicates that the Philippines has a total of P11.67 trillion in loans. 

Furthermore, more than 30% of the households surveyed on consumer expectations conducted in the fourth quarter of 2022 said they had borrowed money from friends or family. Conversely, 20% of the participants said they had requested loans from lending companies, which makes them the second most common source of loans in the country.

The reasons why Filipinos took out loans are to purchase basic goods and services, as well as to expand their businesses. 

However, there are still bad loans, loans in default, and loans that have been past due for more than ninety days. In April 2023, bad loans totaled P427 billion in the Philippines.

Smart Ways To Consolidate Your Debts

To guarantee that you will not struggle with your debt repayments, we provide some tips for you: 

Perform an Extensive Debt Evaluation

Make a list of all the debts you have. Include a list of them with the interest rates, balances owed, and due dates each month. This thorough summary will act as the cornerstone of your debt consolidation plan.

Look up Reliable Lenders

Salary loans come with different terms and conditions from different lenders. Find trustworthy lenders with a track record of open and honest business transactions by conducting in-depth research. Seek out loans with favorable customer feedback, adjustable payback plans, and competitive interest rates.

Carefully Calculate The Total Debt

Find out exactly how much you need to pay off your debts. All of your current obligations’ outstanding sums, as well as any additional expenses like late fees or penalties, should be included in this computation.

Recognize the Loan Terms in Detail

Make sure you carefully study and comprehend the terms and conditions of any salary loan before committing. Keep an eye out for any hidden costs, payback schedules, and interest rates. This clarity will enable you to select a loan that fits your financial objectives and make well-informed selections.

Strike a Deal for Advantageous Terms

Never be afraid to haggle with possible lenders. Look for longer repayment terms or reduced interest rates that better fit your budget. Reasonable requests are often granted by lenders, particularly when doing so helps to ensure that the borrower is responsible.

Create a Reasonable Repayment Schedule

Create a reasonable repayment schedule that fits into your spending limit. Take into account elements like your monthly income, necessary spending, and the total amount of your loans that need to be repaid. Finding a balance between regular living expenses and debt repayment is essential for long-term financial success.

Give High-Interest Debts Priority

Make smart use of the money from your combined loan to settle high-interest bills first. By doing this, you can hasten the process of becoming financially independent by reducing the total amount of interest you pay over time.

Vidalia Lending- Salary Loans

Using a salary loan to consolidate your debts can be a game-changer for taking back control of your financial situation. You may make well-informed judgments, negotiate advantageous conditions, and start your journey toward financial freedom and a debt-free future. Recall that strategic preparation and dedication to prudent financial management are necessary to achieve financial freedom.

If you are looking for a loan to consolidate your debts, pay your bills, fund your medical treatments, and other purposes, Vidalia Lending Corp. is here for you. We offer a low, fixed-rate salary loan to assist you with your planned expenses and emergencies. Contact us now.