Loans: Are not really BAD to Your Financial Health!

By looking around the neighborhood today, we can find different forms of LOANS available to the masses.  Some are like "goods for Arawan", "ATM Collateral Loans", and many others. 

One in "HOT List" lately was the 5-6 which have been dominated by our Indian friends. And that our government under Duterte's administration is paying attention to. It says "5-6 brings NO GOOD to the Filipino people".

Indeed a lot of people out are shouting "Be DEBT FREE" if you want to be financially independent. However, many have been patronizing DEBT! That is why the industry is flourishing - Credit Coops, Thrift Banks, Individuals engaging in lending, and so on... 

Is taking CASH LOANS really bad to our finances? 

Well, to some extent - NOT exactly! (peace bro +Bong Bungalan Jr. ) I may seemed in contradiction here.

What I'd like to drive in here is - depende sa nature, purpose, and the scheme ng LOAN availed. 

For example  there are institutions offering loans that bears an astonishing interest of up to 27% per annum plus charges. while some are as low as 6.0% per annum, charges inclusive. 

For this particular comparison, the lender can loose an amount for the use of money (as they say) of as high as Php 79,200 per 100K loan over the 3-year term compared to Php 12,300 per 100K loan of the same terms.

You see, sa pag-choose pa lang kung saan tayo mag-avail ng LOAN - there are opportunities na that we can take advantage of. 

Another area would be - Saan ba madalas ginagamit or gagamitin ang LOAN?

Well, I'd like to borrow the idea from +Robert Kiyosaki here that something goes like this: If the DEBT that we are accumulating are BAD DEBTS, instead of GOOD DEBTS - then we are in a BIG trouble!! I am absolutely SOLD OUT to this.

So, logically if we do the opposite, then we are in a BIG ___?____. 

But the BIG question now is: How to figure out which are GOOD debts and which are BAD debts, hmmm...??

Well, this does not require a rocket science actually to figure out. We only need a basic and suitable Financial Education. 

In order to get an ample financial education, we need to invest in our selves - get EDUCATED. Oops!! this is not about getting a bachelors degree or enrolling to any school either. Financial education cannot be found in educational institutions, period! 

We need to get our hands dirty here. READ a lot, LISTEN often, EVALUATE them and PRACTICE what we learn.

So, for your Financial FREEDOM? First, you got to have financial education.

_______________

PS: Please share and like our FB Page if you find this article helpful. Comments and suggestions are very welcome too. We @beFreePinoy will greatly appreciate it.