There is a common misconception among many people that all debt is bad, which makes some individuals reluctant to borrow money even if doing so could be beneficial to their current financial situation. The truth of the matter is that there is bad debt and good debt, with the former referring to debt that doesn't bring value or income while the latter is debt that is used to improve one’s financial stability and to build wealth. By using borrowed money strategically, you actually stand to gain more, which is why it’s important to understand the difference and make informed borrowing decisions.
Thanks to digital banks that offer flexible credit options, it’s now easier than ever to borrow money online in the Philippines. If you’re looking to borrow money online quickly without the hassle of submitting tons of documents and waiting a long time, then Maya’s lending options will suit your needs perfectly. There’s Maya Easy Credit, which lets you borrow up to PHP 30,000 payable up to 30 days—a potential lifesaver for urgent expenses such as paying bills that are due soon. Meanwhile, if you need more funds for larger goals such as starting a small business, renovating your home, or buying a new laptop for work, then Maya Personal Loan is the ideal option as it can give you up to PHP 250,000 payable in up to 48 monthly installments.
What makes borrowing from Maya more convenient than other online lenders is that you can complete the application process in just a few taps and receive the funds right away. Within seconds of your Maya Personal Loan application getting approved, the funds get deposited immediately to your Maya Wallet, allowing you to use it right away to settle payments, make purchases, or transfer money to a family member in need. In the case of Maya Easy Credit, transferring funds to your Maya Wallet is not your only option to access your funds. When you purchase from the Maya Shop, scan a QR code to pay in your favorite store, or pay with your Maya-registered mobile number online, you can select Maya Easy Credit as the payment option when checking out.
Indeed, while debt is often seen as a financial burden, it can also be a powerful tool when used wisely. Let’s explore how strategic borrowing can contribute to long-term financial stability and security.
1. Starting or Expanding a Business
The best way to make your borrowed money work for you is to use it as capital for a new business or to expand your current one. For instance, you can use the quick cash from Maya Easy Credit to help you set up a food stall, buy initial inventory, and cover a few weeks of operating expenses
By investing your borrowed money in a business, you give yourself the means to generate income. This not only helps you repay the loan but also builds long-term financial stability and growth. Indeed, when managed wisely, business investments funded by borrowed capital can create amazing opportunities.
2. Buying Income-Generating Assets
Not all purchases made with borrowed money are detrimental; some can also be assets that generate ongoing income. You may allocate a portion of your Maya Personal Loan funds toward investments that generate additional income. For instance, acquiring a motorcycle that you can use for food or parcel delivery services can create a sustainable revenue stream. Alternatively, investing in coin-operated water vending or laundry machines, which you can set up within your property or a small rented space for a water refilling or laundromat business, can provide you with substantial passive income. Making well-planned financial decisions allows you to leverage your loan as a tool for income generation. The income can offset your repayment obligations while also yielding wealth for your future.
3. Skills Development
Investing in skills development can significantly boost your earning potential and career prospects. In some cases, borrowing money to enroll in training programs or obtain valuable certifications can be a smart move, as these credentials enhance your resume and increase your chances of securing a stable, well-paying job. Additionally, specialized certifications—such as those that may be offered by vocational schools, the Department of Labor and Employment, and the Technical Education and Skills Development Authority—may open doors to lucrative opportunities, including overseas employment. While the financial returns may not be immediate, equipping yourself with in-demand skills can accelerate your path to financial stability, whether through higher-paying jobs or freelance work.
4. Debt Consolidation and Credit Building
Borrowing money to pay off another debt may seem counterintuitive, but doing this can actually help improve your financial health so long as it's done correctly. The key here is to use funds from a low-interest loan to pay off a high-interest debt or to consolidate several debts. This strategy prevents your debts from snowballing and growing larger due to accumulating interest charges. And because you will be able to focus on paying off just one loan instead of minding multiple ones with higher interest rates, your financial strain will be reduced and your repayment plan will be more simple. Moreover, if you borrowed money via Maya Easy Credit or Maya Personal Loan, then repayment is made even more convenient as you can pay directly using your Maya Wallet and Maya Savings funds.
Debt consolidation can also contribute to improving your credit score by allowing you to eliminate multiple outstanding debts and focus on repaying a single, more manageable loan. You’ll also reduce your risk of missed or late payments. Additionally, this approach encourages responsible borrowing habits and better financial discipline, both of which are essential for creating long-term financial stability.
5. Emergency and Medical Expenses
Lacking the funds to cover unexpected expenses—such as hospitalization or medical fees—can lead to even greater financial trouble. In such cases, borrowing money can help you manage emergency costs without depleting your savings all at once. Choosing a personal loan with manageable terms, like Maya Personal Loan, can ease your financial strain while allowing you to address urgent health needs. On the other hand, everyday emergencies, like running out of groceries before payday or unexpected car repairs, can be managed with an accessible credit line like Maya Easy Credit. This flexible solution can help you cover these short-term expenses without the need for extensive documentation, making it a convenient option when you need quick access to funds
Debt itself is neither good nor bad; it’s how you use it that matters. When financial resources are limited, strategic borrowing can be a valuable tool for improving your financial situation and reaching your goals. Use the points above as a guide to ensure your borrowed money adds value rather than becoming a burden.
