As the country suffers an increasing number of COVID-19 cases each day, Filipinos still look forward to celebrating the holiday season. Oh yes, we are a nation of gatherings and fun moments with families and friends despite the odds. We might have lost our jobs, but we certainly would never lose our hope and desire to provide only the best for our loved ones during the greatest time of the year.
But most of us are still faced with the bitter reality that this year’s holidays won’t be as colorful as it was celebrated last year. The biggest question now is where to get the funds to buy food and gifts. Will you be spending your most priced savings or will you be borrowing from legit online loans for the money?
When should you borrow?
There is no doubt cash loans are helpful when it comes to funding the celebrations you’re planning for the holidays. You can always apply for a loan in the following situations:
1. When the interest is lower compared to other options
When in need of money, there will be a lot of options for you – personal loans from the bank, using your balance from your credit cards, borrowing money from friends and relatives, and getting quick cash from pautang services. Most of the time, loans from friends and relatives do not entail interest charges but will take a great deal of lakas ng loob and humility to ask for help. Filipinos sometimes would rather endure the cost of a commercial loan than to show their relatives how needy they are at present. So, if you still haven’t gotten the drive to ask a friend for money, then you can apply for a loan with low interest.
2. When you already set a budget
The difference between spending using a credit card and using a quick cash loan is the limit. A credit card usually triggers you to spend more than the budget you set. For as long as the credit limit allows, you swipe even for unplanned purchases. On the other hand, money from loans lets you hold the lump sum and would set your limit preventing you from spending more than the cash you’re holding. Borrowing what you need from cash loans sets the limit and saves you from incurring unnecessary debts.
3. When you’ve got the money to pay for it
Before borrowing from any pautang services, it is best to plan and decide where to get the repayment. Did you lose your job recently? Are you into a business that earns you regular monthly income? If you have a consistent source of funds, then you can always apply for an online loan to address your holiday spending. A little cost may never compensate for the precious moments you spend with loved ones after enduring the crisis due to the pandemic.
When you shouldn’t take out a loan
As there is a long list of reasons to celebrate, there should also be a list of reasons to stop you from borrowing. Financial decisions are difficult to make so when in doubt, check on the following to see if borrowing is the right path to take:
1. When your finances are uncertain
Borrowing is expensive. Regardless of your lender, there are different costs entailed with a loan. Aside from interests, you should also consider the fees and penalties imposed for missed payments. You should also see to it that repayment is easy because the lender is partnered with several payment channels near you. If you’re not sure about where to get the money to pay for the loan, then it might be best not to borrow at all.
2. When you have other existing debts
Borrowing on top of existing debt is a form of financial suicide. Most experts will advise you to take one debt at a time to make sure you can keep up with the payments. Of course, debt consolidation is a different thing because you’re borrowing money to pay off all other existing debts. However, if you intend to grab a quick cash loan to fund your Noche Buena, then it is best to settle your current debt first. This will prevent you from getting into a situation when interests begin to pile up on top of other charges.
3. When you look forward to a more worthy expense
As many businesses suffer and more Filipinos face financial hurdles, we all intend to face the year 2021 with more hope and more worthwhile plans. If you’re looking forward to establishing a small business or jumpstarting a savings fund next year, then you should not borrow money to spend on the holidays. You should, instead, apply for legit online loans to pay off more important things and manage your cash flow.
We can never deny the fact that Filipinos are fun-loving people who are willing to do everything it takes just to make each moment memorable and fun. Holiday spending involves funds for food, gifts, decorations, and gatherings. Most of us may be tempted to borrow with a mindset that fate will provide something to pay it off later. With what we all experienced this year, it is high time to secure our finances, make intelligent financial evaluations, and become smarter borrowers who benefit from the money loaned. Assessing your situation is key in helping you decide whether to click on the “apply for a loan” button for holiday money or to look for cheaper and more creative ways to celebrate instead.