Why Filipinos are Always in the Market for a Loan

The new generation Filipinos, referred to as millennial citizens (born between the years 1980 to lat 199) are considered to be one of the youngest generations in the world. Financial analysts believe that because of this the Philippines should be in an ideal situation to gain and profit from any economic situation it’s in. Analysts believe this new generation Filipinos can be considered exceptional and should have no problem solving any financial problems. However, BORROWING money in the Philippines is at present quite common and rampant. Most of them (even if earning a good sum of money) still live on a paycheck to paycheck lifestyle and this is perhaps due to the following reasons.

 

Financial Literacy

Most Filipinos have been known to have an above average intelligent quotient (I.Q.) but they are not as literate when it comes to the subject of money and CREDIT. The Philippines according to statistics is one of the least knowledgeable when it comes to handling their finances. Among its population less than 1% are financially intelligent when it comes to investing in stocks, bonds, mutual funds and other profitable ventures. Second, Filipino workers today are ill prepared for any financial emergency. This is one of the major reasons why they end up borrowing money from traditional and alternative lenders. Desperate ones even go to the length of borrowing from loan sharks, pawning their hard earned assets and even selling or pawning valuable properties just to ease their financial dilemmas.

 

There is a Solution

 

No matter how serious the problem is, (as they say) there is always a solution. Financial problem is quite common not only in the Philippines but all over the world. Knowing how to face and tackle a problem (financial or otherwise) is how you overcome it. Like any other financial problem taking hold efficiently of your expenses is one of the solutions. Another is to start and find other source of income. Go into sales on your spare time. There is always a way out of a financial dilemma and putting your finances in order is your best solution.