'May PERAan' is SBS Filipino's new podcast series which features financial experts seeking to answer the most common questions about money and finances.
Does it seem like you'll never get to know what it feels to be debt-free?
According to Finance broker Maria Papa, debt is an inevitability especially during unfortunate events such as a pandemic or job loss. However, while everyone will go through one form of debt or another, there are ways to negotiate interests and loans so you can manage paying off your credit card.
Highlights
- Ask for a lower interest rate
- Consider balance transfer
- Consolidate your credit card bills into a personal loan
1. Ask for a lower interest rate
It won't hurt to ask. Asking your bank about lower interest rates informs you of the support available to you.
Remember that the majority of what you may be paying off on your credit card is the interest fee. This accumulates over time, putting you worse off and affecting your credit report.
2. Balance transfer
Maria suggests transferring your credit card balance into a new credit card which does not charge interest until around 24-30 months. Be vigilant about paying off the new credit card every month.
The best outcome you can hope for with this strategy is to be able to fully pay off your debt on your old card before your new one starts charging you interest.
3. Consolidate your credit card bills into a personal loan
This forces you to work within the terms of your loan and meet the monthly repayments required. If you keep your debt within your credit card, it will more likely take you years to pay it off because only minimum repayments need to be made.
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For free and confidential financial and legal advice, contact the National Debt Helpline on 1800 007 007.
You can access your chosen service provider with the assistance of an interpreter by dialling the translating and interpreting service on 13 14 50.
Disclaimer: This article is for general information only. For specific financial advice, you should consider seeking independent legal, financial, taxation or other advice to check how the information here relates to your unique circumstances.
