MANILA - Used for a variety of financial needs, a personal loan typically comes with a low interest rate.
In fact, personal loan interest rates in the Philippines (ranging from 1.2 percent to 1.94 percent) are even lower than credit card rates (2 percent to 3.54 percent).
This is why it can be tempting for some Filipinos to apply for a personal loan.
Borrowing money from a bank is actually a good idea to meet your financial goals -- as long as you’re doing it for the right reason.
But if you’re thinking of getting a loan for any of the reasons listed below, you may be setting yourself up for a debt trap. For more personal finance tips, visit MoneyMax.ph.