Photo by LendingMemo

Photo by LendingMemo

By Chinkee Tan

Ang sagot ko ay, “HINDI!”

Wow, kung hindi, eh di mangutang na lang tayo ng mangutang.

But before you jump into any conclusion, allow me to explain.

Yan ay depende sa klase ng pangungutang. There are two types of debt, one is good debt and the other is bad debt.

Ano nga ba ang pagkakaiba ng good debt at bad debt?

GOOD DEBT
Eto yung para sa KAILANGAN mo na hindi mo kayang bayaran ng isang bagsakan pero may babalik na income on top of it in the future gaya ng …

  • Properties na papa-rentahan
  • Products na pwede i-resell
  • Capital for the services you’ll offer based on your skills

Normally, a good debt helps you generate positive cash flow. This will also help in creating long-term income. And the things bought from a good debt CAN “pay for themselves”.

In other words, POSITIVE ang impact ng ganitong klase ng utang.

BAD DEBT
Eto naman yung para sa mga HINDI MO KAILANGAN na hindi mo kayang bayaran.

Purchased things from this kind of debt have lost their value pagkabili pa lang and they CANNOT “pay for themselves”. Some examples of this are…

  • Signature bags
  • Travel around the world
  • Gadgets
  • Luxury cars that you don’t need
  • Unnecessary toys for the children

Ito ay parang vacuum na humihigop sa mga resources mo. Inuubos yung existing mong pera, sisimutin pa pati yung future income mo!

In short, NEGATIVE ang influence ng ganitong debt sa buhay mo.

Here are some of the possible consequences for the type of debt you’ll make that you need to consider before borrowing money:

GOOD DEBT…

  • LEADS you to a happier and stress free life.
  • ASSISTS you towards financial stability.
  • HELPS you in reaching your financial destination.

BAD DEBT…

  • LEADS you to live a life of worry.
  • CAUSES you to live in debt.
  • STOPS you in achieving your financial goals.

Now that you know the big difference between the two types of debt, doble ingat na sa pangungutang. Dapat before umutang, kailangan ma-identify mong mabuti kung para saan ang hihiramin mo na pera. Walang masama sa GOOD DEBT, kapag ito ay kikita. Nagiging masama lang ang utang kung ito ay BAD DEBT.

THINK. REFLECT. APPLY.

What type of debt do you have right now? Good or bad?

If it’s bad debt, are you ready to be debt-free?

If you’re ready, what are the steps that you’re planning to do to achieve it?

Born and raised in Tondo, Manila, I have Chinese parents and the eldest among my siblings. As a kid, I have witnessed my father’s great loss in business so at a very young age of 12, I was exposed and trained to do business. I even invested summer breaks of my 4 years in high school in my own video rental shop. Visit his website at www.chinkeetan.com