How much money do you need?
10 000
Min: ₱ 1 000
Max: ₱ 10 000
You return: 10 000
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Good Debt vs. Bad Debt

The Filipino culture pushes every Filipino to avail cash loans. Most Filipinos have experienced borrowing from family members, friends, banks, lending institutions, and informal lenders like “Bumbay 5-6”. It might sound strange but not all debt is bad. Even business owners borrow money, for many start-ups, borrowing money ensures the company has sufficient capital to open the doors and stay afloat until they realize a profit.

So there are 2 types of debt: good debt and bad debt. Good debt gives you an opportunity to earn and improve your financial future and bad debt drowns you financially.

Here are a few examples of bad debt:

1. Credit card debt- this is often considered bad debt because of its high interest rates and low minimum payments. It’s great to use credit cards for the rewards and other benefits, but pay the balance in full each month. Don’t let it tempt you to spend more that you can afford to pay.

2. Luxuries- vacations, jewelries, and expensive clothes. If you cannot comfortably pay for these in cash, don’t do it.  These are not needs but wants. Getting into debt just to pay for a trip or a handbag is definitely a terrible use of borrowed money.

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Robocash only wants you to make smart decisions so here are some examples of good debt:

1. Mortgage- particularly buying a home, is a good reason to borrow money. Home ownership is one of the main assets for any family to have. Interest rates are low compared to other types of consumer debt, and owning your own home can improve your quality of life. It could shorten your commute or allow you to move into a better neighborhood. You may live in it for thirty years and then sell it and use the money for your retirement.

2. Student Loan Programs -You are financing an education so benefits include enhanced career opportunities which may increase your earning potential in the long run.

3. Paying off existing debt-This strategy can save you money if you qualify for a lower interest rate on the new loan.

4. Business Capital- Right now many people are unemployed so as long as you have a sensible and realistic business plan, it may be the best time to take the leap of faith.

Knowing your goals and priorities in life can help you gain control over your finances. Because even good debt can also go bad if you take on more than you can afford, but having good debt with Robocash and managing it wisely can always be a smart financial move.

How much money do you need?
10 000
Min: ₱ 1 000
Max: ₱ 10 000
You return: 10 000
All your data is under secure protection!