5 Financial Health Habits for Frequent Borrowers – Manila Report Card

Tala Tips: 5 Good Habits When Borrowing Digitally.

Loans can work against you rather than for you if you’re not careful. It’s easier to rack up debt if you’re not financially responsible. Digitization has made it easier to release money anytime and anywhere, but it still takes moderation to be properly used. It can be liberating to have all that access, but before you just spend, there are a few habits you should keep in mind:

  1. The PoT principle (Pay on Time)

One truth about loans is that they must be repaid on time. Late payments will not only mean that you will incur penalties, but they will also negatively impact your credit score and negatively affect your future finances. For example, credit scores indicate how often you pay on time. The more you pay on time, the higher your credit score. Lenders lend easily to borrowers with good credit ratings. Tala makes it easier for borrowers to repay by offering flexible payment options. Tala’s Loans Your Way was designed to allow clients to choose their repayment date to better align with their income cycles.

  1. Stop capricious purchases

One type of loan that can be difficult to repay is when it’s done on a whim. If a loan is taken out in the heat of the moment, it can cause buyer’s remorse if you’re not careful. Always check if you have enough funds to pay this loan and where the money will come from. Tala microloans are designed to be affordable and not intimidating to borrowers.

  1. Track your expenses

Trying to remember what you spent at the end of the month can be difficult. But when you have a loan to repay, it’s a must. Making a list of the loans you’ve taken, along with the rest of your expenses, can help you stay on track. This will be a guide for you as to when you should borrow again. Tala’s app helps you track the microloans you’ve borrowed on your smartphone.

  1. Save

No matter how hard it seems right now, learn to save. Start with a hundred pesos each day and then gradually increase the amount. The amount that financial coaches generally advise is 10% of your total income each month. For example, if you earn ₱40,000 per month, set a goal to save ₱4,000 per month.

Now, while borrowers don’t normally save on their loan, it would be a good idea to optimize it. Maximize every peso. See if you can keep a small amount to save after using the loan for its original purpose.

  1. Combing through T&Cs

One habit you really need to practice is reading the fine print of your loan agreement. Unscrupulous actors may try to scam you, or you may find out too late what the consequences of the terms are. Keep an eye out for interest rates, payment dates, and hidden fees you may not have noticed.

Tala is very transparent. It has no surprise fees and complies with the Truth in Lending Act (Republic Act No. 3765). Think of it as a guide that makes loans empowering, not a burden.

Old habits are hard for most people to break, and creating new, healthier ones is increasingly difficult, but ultimately more rewarding. Having more access to financial options means more responsibility for you to use them wisely. If you continue to spend wisely and manage your loans wisely, it will strengthen your financial future.

About Tala

Tala is a global technology company that develops the most accessible financial services in the world. Their financial services offer customers flexible and convenient online microloans to help support the unbanked and underserved population. Tala has granted over 41 million loans totaling over $3 billion to over 7 million people on three different continents. Clients have used Tala products to start and grow small businesses, manage day-to-day needs, and pursue financial goals with confidence. Start your journey to financial freedom: https://tala.ph/borrow/

Tala is operated by Tala Financing Philippines Inc., a licensed finance company with SEC Registration Number CS201710582 and Certificate of Authority No. 1132. Always review the Terms and Conditions and Disclosure Statement before proceeding with any transaction loan.



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