Many Filipinos consider borrowing money a practical option to help them achieve important financial goals, such as renovating their home, financing their education, or expanding a business. Indeed, loans can provide the financial flexibility you need to move forward in life—provided that you manage the borrowed money responsibly.
In recent years, digital banks have also made it easier to access personal loans. Maya, for instance, lets users apply for instant loans through the mobile app. They also offer fast loan approval processes and ask for fewer requirements compared to traditional lenders. Credit products like Maya Easy Credit and Maya Personal Loan are practical and accessible solutions for first-time loan applicants who need immediate access to funds but have not yet established a credit history. But before taking on any loan, it’s important to assess your financial readiness. If you borrow money without proper consideration, it can lead to undue financial strain and unnecessary stress.
With this in mind, here are the key signs that indicate you’re now in a strong position to borrow money responsibly:
1. You Have the Ability to Pay Your Loan
When you’re considering borrowing money, it’s essential to evaluate whether you can comfortably handle monthly loan repayments within your existing budget. This means calculating whether your monthly loan obligations (including interest) fit within your monthly income without sacrificing essential expenses like rent, utility payments, or food.
To estimate monthly repayments and assess how much you can comfortably borrow, consider using an online loan calculator. When you visit the Maya Easy Credit page on our website, you can access our loan calculator and input the loan amount you plan to borrow. The calculator will then provide you with a detailed breakdown of how much you need to pay on your next due date, which is up to 30 days after you use your credit. Similarly, the Maya Personal Loan calculator lets you compute your monthly installment amount based on the loan amount and the repayment schedule you select.
2. You Have Legitimate Reasons for Borrowing
You should only borrow money for legitimate and necessary reasons. For example, borrowing for education, medical emergencies, or business expansion can be an investment in your long-term well-being or future growth. However, borrowing for luxury items or non-essential purchases can lead to unnecessary debt and financial stress.
So, ask yourself if applying for quick loans will help you achieve something meaningful in the long term. Remember that responsible borrowing means ensuring the loan has a clear purpose and contributes to your future financial growth.
3. You’re Able to Approach Informal Debt with Caution and Accountability
In the past, you may have found the process of getting credit from traditional banks cumbersome due to the lengthy and time-consuming application processes. Given the hassle of borrowing from traditional banks, borrowing money from friends or family may have then seemed like a convenient solution. But while getting money from loved ones may have given you quicker access to cash, this informal form of loan often lacks the structure and transparency necessary for a healthy financial arrangement. Often, misunderstandings about repayment terms or delays can lead to strained relationships, which can create more stress in the long run. As such, you may have made it a point to pay back the borrowed money promptly and in full to preserve trust and avoid conflicts.
When you recognize the importance of setting clear terms and the need to avoid such risks by opting for formal credit products instead, this may be a sign you’re financially ready to borrow money from financial institutions. Borrowing from reputable digital banks, like Maya, ensures structured repayment plans, clear terms, and fixed rates. Particularly, Maya Easy Credit offers quick access to funds with minimal requirements. You can also conveniently activate this credit product through the Maya app and then transfer the funds directly to your Maya Wallet. Moreover, choosing formal credit allows you to build a positive credit history, which will reflect on your credit score and expand your future borrowing opportunities.
4. You’ve Established Healthy Spending Habits
Another sign that you’re financially ready to borrow money responsibly is having healthy spending habits. When you consistently manage your expenses and avoid impulsive purchases, it demonstrates that you have control over your finances.
Healthy spending habits involve budgeting, prioritizing needs over wants, and avoiding unnecessary expenses that don’t align with your financial goals. For instance, if you track your income and expenditures regularly and ensure that your discretionary spending remains within reasonable limits, it shows that you can allocate funds responsibly. This discipline is essential when taking on a loan, as you’ll need to manage regular repayments while still covering your other financial obligations.
Before borrowing, take a close look at your spending patterns. If you’re confident that you won’t overspend or misuse the borrowed funds, it’s a clear indicator that you’re ready to handle the responsibility of a loan.
5. You Have Emergency Savings or a Financial Safety Net
Before borrowing money, it's also critical to have an emergency fund in place. An emergency fund acts as a financial safety net during unexpected situations like medical emergencies or income loss. If you don’t have sufficient savings to cover unforeseen costs, borrowing can quickly become difficult to manage, and it can lead to defaulting on your loan.
If you don’t have an emergency fund yet, aim to set aside a portion of your income each month until you have a solid buffer. As a recommendation, save at least three to six months' worth of living expenses to ensure you can meet loan payments even if your income is temporarily interrupted.
Being financially ready to borrow money goes beyond simply having the funds to make repayments. It involves demonstrating responsible financial management while ensuring timely loan repayments. Take the time to evaluate the signs outlined here to make informed decisions that support your financial goals. Additionally, review your overall financial situation and develop a clear, detailed repayment plan before applying for a loan. With careful preparation, you can borrow confidently, manage your loan responsibly, and pave the way for future financial success.
