MANILA, Philippines – Getting out of huge debt is a long and difficult process because as of now, there is no easy way to consolidate debt in the country, financial adviser Salve Duplito said.
Duplito said since there is no centralized loan database, banks have no way to accurately gauge just how indebted a person is, making it hard for them to consolidate debt.
The Credit Information Corporation is in the process of setting up a database, but it will be up not until two years from now.
In the absence of a consolidation process, Duplito said these are some ways to get out of debt without resorting to taking out loans:
Talk to each bank and ask for a loan restructuring
“However, it’s highly likely that you will not get lower interest payment terms, just some breathing room to a longer payment schedule. But do negotiate, you won’t lost anything by trying,” Duplito said.
List down all assets that the family can sell, from land to watches
“Every little thing counts. Think of it as a way of de-cluttering,” said Duplito.
Create a mindset that debt can be conquered
"As long as you are not defeated in your mind, the finances will follow," said Duplito.
“Don’t let debt take your life away. The way out of it is painful and will take a lot of time, but remember that the first battle you have to win is within your mind. The happy thought is that that battlefield is something you can control,” she added.