The Light of Opportunities: How Can OFWs Avoid the Deadly Route to Debt?

Despite the fact that OFWs earn a higher income than most of the locals who stay in the Philippines, many of them still fail to manage their finances well, or manage them in any way at all. As a result they may go home without any income and even having mounted piles of debt.

Why does it happen like this? The first and most common reason is that there is a "culture" of borrowing among Filipinos. Actually, 8 in 10 Filipinos have borrowed money for expenses like food, utilities or education.

OFWs are no exception, but in order to not have to extend their stay abroad, they need to be cautious and manage their income in a way that doesn't take them to loads of debt. So, we at #WorldCom Finance offer you too look at the times when borrowing money is okay

When is borrowing okay?

1. Borrowing for real needs
No, a new iPhone isn't one of them. Only borrow money when you have no way of not doing so: e.g. paying for your kids' education. Never borrow money for leisurely activities or outings. You may fail to notice how these debts add up.

2. Borrowing for business
If your borrowing is going to result in you earning more money, you may go for it. However, make sure that you never borrow from sources with interest rates higher than 20%.

3. Borrowing from legit sources
Whenever you borrow money, it's mandatory that you do so from legitimate financial institutions. Never borrow from unknown sources.

What to do with existing debt? 

If you don't wanna end up in a bad situation, start paying off your debt as soon as soon as possible. Remember that getting rid of it is your number one priority, therefore, your needs and wants can wait a little. Strictly manage your money (You can do so using worldcomfinance.com products) and don't allow extra expenses to your family.

Once you've got rid of debt, start saving up to 20% from your paychecks, this way, you will be in the position of a lender, not the borrower pretty soon!