Ways To Use A Personal Loan

The Right & Wrong Ways To Use A Personal Loan

If you are like many other Filipinos, you probably have a credit card or two, so the thought of applying for a personal loan may not have crossed your mind. Before you pay for your next major expense on a credit card, you can also consider getting a personal loan.


A personal loan holds many advantages such as:

  • Lower interest rates: Personal loans traditionally have lower interest rates than credit cards, making them a great option to help you consolidate your debt.
  • Flexibility: There are endless possibilities of how you could use your personal loan, keep in mind that you could get discounts on products by using cash.
  • Fixed rate and term: Most personal loans have a fixed interest rate for the entire term of the loan, so your monthly installment remains the same.
  • Easy online application: Most financial institutions provide you with an opportunity to apply for a personal loan online, making it easier than ever to get financing.

When Should I Consider A Personal Loan?
Here are the top five scenarios where using a personal loan makes a lot of sense.

  • Consolidate Debt
    One of the top reasons many Filipinos use a personal loan is to consolidate debt. A personal loan can help you reduce your revolving credit card debt at a lower interest rate. Consolidating your debt can also help reduce the stress associated with managing multiple credit accounts, and help you become debt-free faster!
  • Pay for Your Wedding
    Consider using a personal loan to finance your wedding-related costs before you charge these expenses on your credit card. Depending on the interest rate on your credit card, you could save a ton of money with a personal loan.
  • Finance Home Remodeling
    Another scenario where a personal loan would be appropriate is to help you finance a home remodeling project. Before you start charging home remodeling related expenses on a high-rate credit card, consider applying for a personal loan first. A personal loan is perfect for an individual who does not have a lot of equity built up in his or her home.
  • Pay for Health-related Expenses and Emergencies
    If you are going to be facing an expensive medical procedure, consider taking out a personal loan to help you finance it. Before you empty out your bank account or max out your credit card on a hospital visit, see if a personal loan could help you save money.
  • Take a Vacation
    A personal loan could help make your dream vacation a reality. Paying for vacation-related expenses such as airfare or hotel accommodations with a personal loan could help you save a ton of money in credit card interest, and make your vacation more affordable with fixed monthly payments.

When Shouldn’t I Get a Personal Loan?
Here are some instances where getting a personal loan may not be the best option.

  • Take a Lavish Vacation
    We just stated that a personal loan can be a great option to help make your dream vacation a reality, but be reasonable and don’t go overboard. Taking out a personal loan for a vacation that you know you cannot afford to pay for on a monthly basis will result in additional debt and stress.
  • Shopping
    Avoid taking out a personal loan to fund a shopping trip. If you can’t afford to pay for the items now, you probably don’t need them.
  • Can’t Afford Monthly Payments
    If you have multiple financial obligations that would hinder you from making monthly payments on your personal loan, you should not apply for one. You will need to make all your monthly payments on time to avoid hurting your credit score.
  • Gambling
    This may seem like a no-brainer, but don’t take out a personal loan to go gambling. This could form a bad habit, and could easily lead you down a path of high-debt.

Where Should I Consider Applying For a Personal Loan?

There are many options when it comes to personal loans. One great option is getting a no collateral personal loan. With it, you can enjoy flexible payment terms of 12, 18, 24, or 36 months, making your installments very affordable. You can get a monthly interest rate of as low as 1.49% for a 12-month tenor if you have a credit card. You can get your financing in as little as five banking days if you opt to pick up your loan proceeds at the head office.

Before you apply for a personal loan, make sure you can make the monthly payments to avoid falling deeper into debt. It’s essential to always be responsible with the debt you take on.

Find the best Personal Loan in Philippines at http://www.imoney.ph/personal-loan

Do you have any personal experience or valuable knowledge about personal loans? Share it in the comment box below.


Image credits: .nashfs.com.au, moneysavingexpert.com

Financially Literate OFWs


According to a study conducted by SEDPI in 2011, 1 out of 10 overseas Filipino workers (OFWs) ends up broke even after years of working abroad to provide a better life for their families and 8 out of 10 do not have savings and are unable to prepare for their retirement or return to the country and are caught in a cycle of debt and poverty.

Another study conducted by Taylor Nelson Sofres in 2015 showed that 82% of the OFW survey respondents said they are not ready to stay home for good for two main reasons: they do not have enough savings; and their goals have not yet been realized.

It was in 2012 since our group started an advocacy in financial literacy and started organizing Financial Literacy seminars for OFWs here in Singapore (check the past and upcoming seminars here). Since then, we have already covered a lot of different topics in personal finance, insurance, real estate, investments in securities, entrepreneurship, and a lot more.

On Saturdays, we conduct “Newbies Session” for newbies sharing about: personal finance, insurance, investing in pooled funds, and basics in entrepreneurship. Another one is “Get Rich Series” covering topics in government savings programs, investing in agriculture, etc.


Financial Literacy Seminars Schedule:
bit.ly/tgfisingapore


To help us in our advocacy we have invited and engaged a lot of highly respected resource persons in the world of finance and even government agencies like Department of Agriculture and Philippine Trade and Investment Centre Singapore (of Department of Trade and Industry and Board of Investments).

And last year, 2015, to spread further our advocacy to more OFWs here in Singapore, we have partnered with Pinoy WISE (Worldwide Initiative for Investment Savings and Entrepreneurship), a financial education program of ATIKHA, to volunteer in teaching the Financial Education Course on Sundays among migrant workers (majority are household helpers).


Financial Education Course (8 Modules):
1 – Benefits and Negative Impacts of Migration
2 – Achieving Migration Goal
3 – Managing Family Income
4 – Saving and Investing
5 – Protection (importance of insurance and healthcare)
6 – Borrowing and Getting Out of Debt
7 – Addressing Family Issues
8 – Returning Home

Update: Modules 1 and 8 have been combined to form another course session i.e. called Reintegration Planning and Counseling Session


With all these programs/seminars, we hope to engender more financially literate OFWs. So they can now make clearer financial goals, so they can now make wiser financial decisions, so they can now reach their financial goals in the near future and soon go back homefor good…financially healthy.

Modern OFWs are financially literate OFWs. Here’s a revolution to more financially literate Filipinos, to #FinanciallyLiteratePH.


We have conducted a Financial IQ Test recently, check out its latest result showing that those who are more exposed to right financial information obviously have scored fairly well.

Are you an OFW? Here are some helpful articles for you:
Top Money Mistakes That OFWs Make

Are you an OFW? Here are bad spending habits you need to break

OFWs on money spending: Learn to say ‘no’ to extended family

Don’t want to be an OFW forever? Manage your money right

#OFWTips: Want to return to PH earlier? Here’s what you should do

#OFWTips: Getting out of bad debt

#OFWTips: Are you financially literate? Take this quiz!


Image credit: wallpaperawesome.com