Tips to Become Debt-Free
Jon Carlos Rodriguez, ABS-CBN News
Posted at 01/30/16 8:46 AM
MANILA – “It’s all in the mindset.”
Jayson Lo, a financial coach and inspirational speaker, said this is one of the steps to becoming debt-free.
Lo said it all starts with how we as individuals perceive debt that will allow us to avoid it.
“Kasi kung hindi ka galit sa utang, uutang ka ng uutang. It’s all in the mindset, dun nag-uumpisa lahat,” he told dzMM.
“Ang importante para makawala sa utang, determined tayong makawala sa utang,” he added.
Lo also said controlling spending habits is key in getting finances in order, especially for those who use credit cards.
Having a credit card does not mean having extra money, and it is still necessary to stay within budget to avoid going on a “swiping spree.”
“If you cannot afford it in cash, don’t buy it,” advised Lo, adding that consumers should be wary of purchasing items with “zero percent interest.”
“Wala namang kumpanya na charity, lahat ‘yan kailangan kumita,” he said.
Lo also advised against borrowing money from loan sharks because of the high interest rates. Some loan sharks lend money with interest rates of 5 to 10 percent per month.
“You will be a slave to debt kapag ganyan ang ginawa natin,” he said.
He noted that having an emergency fund is also important as it will help during times of need. The emergency fund should be equivalent to living expenses per month.
“Pinakamaganda, at least anim na buwan,” said Lo.
Lo reiterated, “Dapat maging galit sa utang. That is the only way para makawala kayo sa utang.”