Asteria Lending Inc. Unit 305 3/F 6762 National Life Insurance Bldg. San Lorenzo, Ayala Ave. Makati City
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Office Hours:
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If you are living in the Philippines, you can enjoy lower retail prices on many everyday items and also a much cheaper cost of everyday living. This doesn’t mean that overspending isn’t a problem, though. For those with personal loans and credit card debt, overspending on frivolous items can have seriously negative consequences. Salary loans in the Philippines are frequently issued to people who have forgotten to pay attention to their finances and consequently, run out of money for essentials like food, fuel and bills. Asteria want to make sure none of their customers end up in this situation, so here are some of the more serious consequences of spending more than you can afford to.
It may sound farfetched and even a little dramatic, but those with significant amounts of debt are three times more likely to suffer from poor mental health than those who are financially stable. The constant stress and worry of not having enough money to pay your everyday expenses can lead to a multitude of know on effects. In the Philippines, mental health is generally of a good standard, but those who suffer with debt and insolvency can often find themselves in serious situations. Many people in debt find it difficult to accept the reality of their situation and can turn to unhealthy coping mechanisms such as excessive alcohol to try and distract themselves from the unpleasant feelings. This is never a positive step and will only cause more issues in the long term. Avoid damaging your mental health by taking care of what you’re spending on daily, weekly and monthly basis.
A poor credit score takes a while to recover from and the consequences of being blacklisted or flagged as an irresponsible customer can be quite severe. In the Philippines, loans are issued based on the borrower’s perceived capacity to repay the money comfortably. A low credit score will mean you are susceptible to much higher interest rates and you will generally be precluded from applying for certain types of credit. Not paying on time, missing payments entirely or forgetting to set up regular bank transfers can all contribute to this, so ensure that you make an effort to stay on top of anything you already owe. If you’re considering buying property in the Philippines, a bad credit score can be serious stumbling block. Similarly hiring vehicles or renting accommodation can also be problematic.
As we suggested earlier, being in debt because of overspending can have serious consequences on a person’s mental wellbeing. The knock on effect of this can be seen in their ability to maintain relationships with partners and family members. Arguments over money, lack of basic resources such as food and hot water can all put an intolerable strain on romantic relationships and in worst case scenarios, they can even cause them to break down entirely. As with many of these situations, its easy to think “it will never happen to me” but unfortunately, the reality can be very different. No matter how stable you think your home or family life is, never compromise it by overspending without thinking.
Companies frequently carry out credit checks on new employees and some of occupations automatically exclude people who have had serious financial problems. Similarly, those with severe debt are unlikely to have the monetary resources for things like continued professional development or training. Though career development loans in the Philippines can be an option, you won’t be able to take advantage of any good value rates of interest if you have a reputation for spending recklessly without thinking about the consequences.
In the most extreme cases of reckless overspending, individuals and families have been known to experience serious physical health problems. Nutritious food and medicines can all cost money and if overspending has left you without the means to pay for them, this can result in an extremely serious situation. Always consider food and essential medication as an absolute priority and never be tempted to splurge your paycheque on things you could conceivably live without. In less extreme cases, physical health problems can still arise due to overspending. Having to cancel gym memberships and take less exercise is just one example of how reckless financial behaviour can directly impact on your body.
Reckless overspending can leave people in positions where they have no option but to ask friends and family for money. Though you may have a loving and supportive set of relatives and selection of generous and understanding friends, having to borrow from them too often will soon takes it’s toll on their patience. Before splashing out on something you don’t really need or applying for a salary loan you can’t really afford, always consider how your actions can potentially affect the people who are closest to you. Overspending doesn’t just effect you alone.
Socialising costs money, whether it’s a couple of drinks at a local bar or a cup of nice coffee with a friend. Overspending on pointless things means that you will have less money available to invest in spending time with people you care about. Over time, this can lead to loneliness, isolation and a feeling of being “left out” of society in general. When you can only afford to pay for the basics such as food and health costs, life can suddenly seem like a very lonely place indeed.
Overspending doesn’t have to be a problem, even if you’ve got a history of making poor financial decisions. It’s never too late to change and with the right approach to budgeting and money management, you can avoid all of the problems we have outlined above. If you are struggling with overspending, take some real, practical steps to change the way you deal with your cash. Your friends and family will thank you for it.
