I visited several banks last week here in the Philippines because I wanted to open a remittance account for my husband who’s now working in UAE.  I have not opened any account for the meantime since I am still waiting for the Certificate of Employment  which  is one of the documents required.   While waiting for my turn to ask all of my queries to the BDO bank teller, I read their Personal Loan leaflet for those OFW (overseas Filipino workers) wanting to apply for a loan.   Here are the basic application requirements.

1.  Must be 25 years old upon application to 65 years old upon loan maturity.

2.  Gross Monthly Income of P20,000 or its USDollar equivalent.

3.  Filipinos; OR Former Filipinos with or without dual citizenship; OR Filipinos married to foreigners; OR Foreign based Filipinos/OFW and their Beneficiaries.  (For Secured Personal Loan)

4.  At least 2 years continuous employment contract; 3 years to other employment.

5.  Must have at least one (1) landline phone at either local or foreign residence or employment location.

6.  Beneficiary must be living or working within BSO serviceable areas & must have landline.

7.  Should have a Banco De Oro Current Account, Savings Account or Time Deposit with a minimum placement of P15, 000 or its US Dollar equivalent.  (For Secured Personal Loan)

8.  With good credit history

For the Document Requirements, both Secured and Unsecured Personal Loan, applicant shall be the OFW only.  For nore details just visit the BDO website.  www.bdo.com.ph

When time’s getting tough and unavoidable circumstances happen like natural calamities, you would be finding ways how to keep your life survivable. Such disasters do not only affect USA like the hurricane (Katrina etc.) but also in the Philippines in our case typhoons (Hagupit, Frank etc.) or storms, flood and landslide.

Well, I have good news for Pag-ibig members and SSS members since they can avail Calamity Loan. Some may have avail of their benefits already but for those who haven’t applied yet, here are the details that you should be aware of;

Pag- Ibig Calamity Loan Program (HDMF Circular No. 195)

This program provides financial assistance to Pag-Ibig member victims in calamity-stricken areas. The following are the ones who are eligible to borrow:

1. When a member has made at least 24 monthly contributions

2. An actively paying contributor at the time when he applies for a loan, and commits to continuously remit contributions for the term of the loans

3. A resident of the area which is declared calamity-stricken

The loanable amount of which a member is entitled to is up to 80% of the Total Accumulated Value (TAV) OF his savings. And for members with existing MPL’s, outstanding loan balance shall be deducted from the proceeds of the calamity loan…

For more details visit this site…www.pagibigfund.gov.ph

With regards to SSS Calamity Loan, from the Philippine Social Security System website, you can qualify for a calamity loan if: http://www.sss.gov.ph/loans/cal0001.htm

Who may qualify for a calamity loan?

A currently employed, self-employed or voluntary member who is a resident of a calamity area as covered by Presidential Proclamation or as declared by the National Disaster Coordinating Council (NDCC) or the concerned Local Government Unit (LGU).

He must have paid at least a total of 24 monthly contributions throughout his membership, including two monthly contributions within the one-year period prior to filing date.

He has not yet been granted a refund of contributions, retirement or total permanent disability benefits.

He must be up-to-date in the payment of all member loan obligations, including the following:
» salary loan
» calamity loan
» emergency loan
» stock investment loan
» privatization fund loan
» special educational loan for vocational and technical students
» special educational loan for Y2K conversion training
» member assistance for the development of entrepreneurship (MADE), and
» housing loan granted through the SSS, National Home Mortgage Finance Corporation (NHMFC) and Home Development Mutual Fund (Pag-IBIG).

The amount of calamity loan shall be granted only to the extent that the loan being applied for plus the member’s total outstanding loan balance at the time of application shall not exceed P50,000, except those of member assistance for the development of entrepreneurship (MADE) and housing loans.

I believe that it doesn’t matter if your earning like a company president or a clerk as long as you know how to handle your money wisely. As the saying goes, live within your means.

I have come across an article which is all about time-tested principles of how to Stick To A Budget from financially-savvy couple Vic and Avelynn Garcia of Unleash International.

STEP #1 LIST DOWN YOUR MONTHLY INCOME AND EXPENSES.

According to Vic, the top skill in financial management is identifying where your money comes from and where it goes. List down all your sources of income every month so that you can plan your savings and expenses properly.
Next, note down all your expenses for the month. It doesn’t matter how big or small the amounts are, just write it all down. Keeping track of all your spending will show you if are on the right track budget-wise or if you are spending too much on things that you don’t really need.

STEP #2 ANALYZE EACH ITEM IN YOUR EXPENSE LIST.

Ask yourself; Is there an item you can quit spending so much on? Is there a cheaper alternative you can tap? For example, do you really need to buy that leading brand of jeans or is there a more budget-friendly option?

STEP#3 STICK TO THE 70-20 -10 FORMULA.

THE Garcias teach that you should live within just 70 percent of your income. The remaining 20 percent should go to a savings or emergency fund. “This is important so that whatever happens, if there is sickness or an emergency in the family, you don’t have to borrow”,explains Vic.
The last 10 percent, Vic and Avelynn say, belongs to God and should be given to your church. “If you invest your money in a bank, you get two to five percent interest, but if you give to God, He promises a hundred-fold blessing.” The Garcias set aside this donation first thing every month, and even go beyond ten percent when they can manage it.

STEP#4 OPEN AT LEAST TWO BANK ACCOUNTS.

Money kept on hand is easily spent so better to stash it at the bank. Get a regular account for your revolving fund, the money alloted for your daily expenses. Get another account to hold your contingency or emergency fund. Vic says this second account should contain three times the amount of your monthly expenses. If you lose your job for example, at least you have three months to look for one before you run out of cash.

Once the contingency fund reaches that minimum amount, it is time to open another account for your short-term and long-term savings. Use this third account to save up for major purchases, such as household appliances, furniture, or car.

This is such an awakening call for me, and also to everyone who’s having a hard time sticking to their budget. So let’s start practicing these principles and enjoy financial freedom soon!!!

What is an ADA? ADA which means automatic debit arrangement happens when you authorize your bank to debit the bill amount from your account on the due date and remit the payment to your service providers namely Meralco, Smart Broadaband, Maynilad etc. Of course you should visit your bank of account to enroll in this option or at least use the power of surfing through the net the different bank websites who offer this service. Like in the case of Meralco, bill payments are accepted through these accredited ADA partners.
1. Allied Banking Corporation
2. Banco de Oro Universal Bank
3. Bank of th Philippine Islands
4. Citibank
5. Union Bank of the Philippines
6. United Coconut Planters Bank

Credit cards are still not as common in the Philippines as they are in the United States, but more and more Filipinos own one. And those who have plastic money use them more often, too. Most credit card companies report growth rates of about 20 % every year. A higher spending pattern among cardholders has also been observed. Cardholders usually use their credit cards for day-to-day expenses; groceries, dining out, and shopping.

Despite the occasional big spender that gets in debt trouble, most Filipino cardholders are now more judicious users of plastic. They don’t splurge although they take advantage of card offers to get the best value. Most cardholders know that it’s not OK to just swipe and swipe to get whatever they desire.

When used properly, credit cards can actually help shoppers get what they need and want. Some banks offer zero interest rates or installments purchases for up to 12 months. This is particularly helpful to homemakers and working mothers as it allows them to stretch their budget.

Indeed, credit card companies are cooking up ways to ease the financial burdens and worries of cardholders. Here are some ways to swipe smart;

• CHOOSE THE BEST CARD FOR YOU. There are over 50 credit card products in the market today ( and the number keeps growing) so choose wisely.
• SET A BUDGET AND WORK WITHIN IT. Don’t fall into the trap of buying things just because they’re on sale. Schedule when best to use your credit card without going over your personal limit. Use your card responsibly. Budgeting helps you organize your spending.
• CHECK OUT OFFERS MADE TO YOU. Read your statement of account for ongoing deals and promotions that may give you better value for your money.
• NEVER SKIP A PAYMENT to avoid late payment fees and finance charges.
• PAY AT LEAST THE MINIMUM PAYMENT DUE on time every month. But don’t make it a habit. The minimum payment is not the only amount you owe. You will be charged interest on th portion of the balance that you don’t pay by the due date.
• SPEND AS YOU EARN. Don’t spend more than what you can repay. Don’t borrow in anticipation of future earnings.

I have read this must-read article from Good Housekeeping GET MONEY WISE! Don’t you think it’s worth posting!!!