An Insider‘s Guide to Recovering from Financial Hardship

Poverty incidence among Filipino individuals has decreased from 27.6 percent in 2015 to 21.0 percent in 2018 according to the Philippines Statistics Authority. One of the reasons why more Filipinos are emerging out of poverty is the steady economic growth that the country has experienced for the last three years according to an article on BusinessMirror. However, there are still a significant number of people that are struggling financially. While it is possible to get out of financial hardship, it’s not easy to do so. Seeking out strategies to make the process a bit less challenging, though, can help you through the worst of situations.

Start saving money

If you are just an emergency away from financial disaster or are living from hand to mouth, you are definitely struggling financially. Financial struggles can be mitigated but you must first learn how to manage your finances. Managing your finances even when you are facing financial hardship is what will make it easier to save. You can save money if you start prioritising your savings instead of working only to pay bills.

Start by cutting your monthly spending if you want to save. For example, you may save money by buying television services from companies that offer full package bundles with TV, internet and phone. Or you could just buy a digital antenna to get all the television you need without relying on satellite or cable Television. If most of your money is going into paying your debts, there is a way you can find debt relief.

Getting out of debt

If you are trapped in debt, then you may benefit from the Financial Rehabilitation and Insolvency act. Under this act you can file a petition seeking for suspension of payments or voluntary liquidation. If the court finds you eligible for suspension of payments, it will issue an order accompanied by an automatic stay that will stop the enforcement of claims of creditors. Under voluntary liquidation, your assets are liquidated and the proceeds handed over to your creditors. After this, you will be discharged from your debts giving you a chance to start afresh.

For people who are not about to default on their loan, you can start by paying the smaller loans first and then proceeding to the bigger loans. You do this by making bigger monthly repayments for the smaller loans while keeping the repayments for the other loans to the minimum required. You could also clear your debt faster by making more frequent payments instead of one large deduction every month.

Financial hardships are probably a sign that it’s time to take control of your finances and stop relying on luck or debt. Taking control of your finances should be a permanent lifestyle change not just actions to stop financial disaster.