How can you get out of debt

Most Filipino are fond of using debt to acquire the things they want fast. I know you want to have the things you desire fast too? But, should debt be the only viable way of achieving it?

Most of us do not know how to save money that’s why we relied on debt to get the things we want in life.

Want a new phone? Home credit is the answer.

Want a motorcycle? Finance it through a loan.

Want to travel? Go travel and pay later.

Having the thing you desire is a good thing and yet bad when you acquire them through bad debt.

What is a bad debt anyways?

Robert explains it best.

Bad debt is debt that makes you poorer. I count the mortgage on my home as bad debt, because I’m the one paying on it. Other forms of bad debt are car payments, credit card balances, or other consumer loans.

Robert Kiyosaki

Interest kills your money purchasing power, Interest is working against you. You are paying more interest-bearing debt. Those loans that you have should be paid off as soon as you can. Work with your finances now.

Let’s start with a…

A story

Meet our fictional friend name Deth. Deth has a lot of debt, she likes to own a lot of things, she keeps up with the trends. Deth buys the latest dress, the latest phone, she likes to travel a lot, in everything she does credit is her buddy.

One day, as she was looking for good deals online, she received an email informing her about her credit. She was shocked, seeing her debt is now amounting to 1 million pesos. She falls rock bottom.

She’s contemplating, how does this happen? Her lifestyle ruins her finances.

How Deth will overcome this mess?

Commitment To Pay Obligations

Deth is now on her quest of paying off all of her obligations. Deth is looking for ways on how can she pay off all of her debt.

Her credit card debt gives an interest of 3 percent per month of the current principal amount which is 1 million pesos. Deth’s salary is worth 50 thousand pesos each month.

Deth decided to plan how she would pay off her debt. She commits herself to pay all her debt in 2 years’ time.

Her plan goes like this.


She now lives her life with a budget of 20,000 pesos, and she uses the other 30,000 pesos to pay off her debt. He looks for extra income while she was on her budget.

She makes sure to pay 50,000 pesos each month. Each excess money from the interest adds up to her payment.

As the time table shows. Deth will be debt-free on December 2021.

Paying more than you intended will make you pay off your debt a lot faster. Deth pays more than 50,000 pesos like in December 2020 she had extra money because of her 13th-month pay.

Final Note

This strategy only consists of two things, budgeting, and extra income.

When you know how to budget your debt will surely be taken care of in due time, you want to speed up paying your debt? Make extra money on the side.

Paying off debt is never easy especially when you yourself are struggling to meet ends meet. Growing your financial knowledge will help you spot on a lot of good deals that can help you in your quest of paying off your debt and it will even level up your financial life.

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