Published: June 12, 2016 | Updated: November 7, 2019 | Posted by: Bea Bongat | Personal Finance
4 in 10 Filipino investors carry debt with 7% of the survey respondents having debts higher than Php 500,000. This is according to the Manulife Investor Sentiment Index (MISI). People go into debt for numerous reasons. Some go into debt for investment purposes, such as taking out a home loan to buy real estate. However, most people incur debt out of a ‘perceived’ necessity wherein expenses are higher than their incomes. The word ‘perceived’ is important because there’s no need to take out debt out of necessity if you can manage your money properly wherein your expenses are less than your income.
If you do this, there’s no need to take on debt, except for house, car, or business loans which can be used as an investment and to improve your future. The infographic below shows the benefits of being debt-free and how you can pay down your debt: