Getting Out of Debt...

"Money is worth nothing to the man who has more than enough" - George Bernard Shaw

This is a heavy and serious subject that affects a lot of people....and yes, that includes financial planning students like me...
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I remember when we were kids, my dad got into trouble with numerous credit card companies....."nasunog na daw" sya sa mga utang...gladly, he was able to get out of it....but the hard part was, he needed to sacrifice a huge chunk of his retirement pay...
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I'm trying to assess what are the root causes of this debt problem....kase nga daw, once you identify the root cause, then maybe you can cure the main problem.....btw, these are personal opinions and observations, not necessarily "expert" opinion...

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FAMILY.  Everything daw starts with the family.....good thing is I'm now a family man so I can relate....
- pag weekend, san ang favorite na pasyalan ng pamilya???....sa malls di ba?....sa Jollibee??...
- what are the first words that kids or toddlers learn to speak aside from Mama and Papa???....of course, SM, McDo, Jollibee, Toy Kingdom, ....=)
- san si Mommy and Daddy pag suweldo time....siempre kung saan may SALE!!!
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SCHOOL.  In school naman, the kids learn from other kids....so medyo nageexpand na yun vocabulary ng bata...like Dora the Explorer bag, Nike shoes, Playstation, iPads, iPods, etc....then as early as pre-school, whenever students celebrate their birthdays, the usual custom is they have to prepare something in school...like a mini-Jollibee party complete with giveaways....
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 CHURCH.  In church naman, we like to make "porma"...so kids or even adults wear their "Angry Bird" or "Green Lantern" shirts plus their cool shorts and sneakers or flipflops (reminder po, bawal ang shorts at tsinelas sa simbahan)....the Daddys are wearing their Lacoste or Burberry shirts plus their blingblings....the Mommies have their signature bags and jewelries....
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COMMUNITY/NEIGHBOR.  Wow, si Pare has a new Hyundai Tucson or Mitsubishi Montero sports....bili din tayo nun mommy!!!...Teka, si kapitbahay, nagpaparenovate or nagpapagawa ng second floor....oops, si BigTime neighbor may bagong nabiling condo or apartment na naman....
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MALLS...Laging may SALE pag suweldo time!!!..0% interest on installment!!!...Buy Now, Pay Later....pag uwi mo naman galing trabaho, wala kang choice kundi bumaba sa MRT station na connected sa Mall....can you count how many malls will you passby from QC to Makati???....di ko binilang, pero super dami....
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OFFICE...Sa opis naman....siempre pagandahan ng cellphone, bags, laptops, watches, jewelries, shirts, dresses, shoes, cars, even belts (dapat daw yun may malaking H like si Manny Pacquiao)....
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TV....how many hours do Pinoys watch TV?....what do we watch?...who do we follow?...for the artistas that we like, what companies or products do they endorse???...for the kids naman, siempre, nandyan si Barney, Mickey, Dora, Disney Jr., ...these cartoon characters sell a whole lot of products too.....
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BANKS
banks encourage us to save (at very low interest rates)....but they also entice us to borrow (at very HIGH rates)...well this is there business in a nutshell...banks also give you convenience, by having ATMs everywhere, so you can withdraw, withdraw, withdraw, withdraw and once more, withdraw.....
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I could go on and on....I just want to say that there is EXTREME PRESSURE for us to SPEND, SPEND and SPEND.....not enough people telling us to DISCIPLINE ourselves to BUDGET, AVOID DEBT, INVEST AND SAVE FOR OUR FUTURE.....
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Our vulnerable kids are also exposed early in life....not enough people teaching about GOOD PARENTING as well....
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I'd like to end with some DEBT quotes:

• Rather go to bed with out dinner than to rise in debt. - Benjamin Franklin
• If one wants to get out and stay out of debt he should act his WAGE. - Unknown source
• Running into debt isn't so bad. It's running into creditors that hurts. - Unknown source
• Debt is the worst poverty. - Thomas Fuller
• A creditor is worse than a slave-owner; for the master owns only your person, but a creditor owns your dignity, and can command it. - Victor Hugo

Hope this helps.

Ge

Gerald Cantor is a Registered Financial Planner graduate, a Certified Public Accountant and a Certified Internal Auditor.  He is also a Financial Consultant of Pru Life UK.  Ge is proud to be an ex-OFW, a "career-shifter", a "high-leaping" baller, a newby entrepreneur and most importantly, a "dedicated" dad of Gia (4yo) and Clarie (2yo).