Ways To Manage Debt

Saturday, July 17, 2021 Philippines


Working as a nurse in the Philippines may have its perks but the sad reality is most of us also rely on loans, credit cards, borrowing money from our family that makes us in debt. At least in my case (I usually borrow extra money from my mother) and most of the nurses that I personally know have their own financial difficulties. This is because our low salary cannot keep up with the cost of living as well as the expenses we need to study for more experience and knowledge or even the expenses to apply abroad. Application processes for job application abroad and examination fees are a pain in our budget. Not only that, there are other expenses required for nurses like seminars, membership to Philippine Nurses Association, Professional Tax, and so much more that should be included in how you plan to spend your salary. 

As I now move to another country, I want to be wiser and manage my finances to avoid debts or at least manage the loan I borrowed from my mother. So for today, I am sharing with you some of my tips to manage debts. 

1. Compute the total of how much you owe

First, you have to know the total debt you need to pay. Compare it with your current salary. Also, you should know the interest, due dates and required monthly payments. This way, you can set how much percentage of your salary should be saved in reserve for your debts. 

2. Pay in time

Avoid extra charges as much as possible. Imagine the penalties and interests that adds to your debt for not paying in time. If you can enroll your bills into online banking, it will make paying in time easier. 

3. Consider consolidating your debts

If you have too much bills piling up or debts, consider paying it off through consolidation. Debt consolidation is a way wherein you will loan an amount that can pay all of your debts so that you will just pay one bill monthly with computed interests. 

It may make you shy away from it since you will have another loan but you can save more interests because you will be able to pay off everything and just pay your monthly bill from the consolidated debt loan.

However, just make sure that you read the terms and conditions on each loans and study if it will make it easier in your case or not. 

4. Reserve money for emergency fund

Even though you are already in a tight budget, not saving money for emergency fund may put you in a more complicated position in case of emegency. 

There are several banks that you can use to start saving for your emergency fund that also offers free life insurance like in Security Bank and Maybank. There are several offers from each bank, you can search it online or visit branches near you. Look and compare what fits your  budget. 

5. Cut your expenses

I know it is easier said than done but this is really the main way to be able to pay off all your debts in time. A friend of mine once shared to me that you need to live below your means - not within your means if you are in debt. 

Just spend your money only at necessities and if you are going to purchase other than necessity, make sure that you already saved up for the emergency fund and your bills aside.

6. Find other source of income

Last, try to find a small way to earn more on top of your regular salary. For example, doing business or turn your hobbies into income. Any additional money will be a relief. 

I hope that some of these tips can help you and enlighten you of what should  be your priorities in life. I learned my lesson here in the Philippines that I was not able to spend my salary in investments and insurances and I wanted to be wiser in my new adventure abroad. The tips that I shared are what I personally learned and I will keep this in mind wherever I go now. 

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