A long term advise to teachers upon availment of the five years loan term
Teachers are now going to banks and are availing the five years loan term offered to them. Although I can’t seem to see the positive side of this new loan term, many teachers appear to be happy on the other side.
It is as if this five years loan term offered to teachers is heaven sent to them in times like this. To be exact, the cost of living at present is too high and the salary is the same. In this view, teachers are desperate to make ends meet every month.
For those teachers who are very eager to avail of the five years loan term, here is my long term advice:
1. It’s okay to avail of the loans but make sure that you will not suffer in the long run.
If availing of the loan is the only answer to your problem, then be it but make sure you think twice first.
2. I advise you to finish first the previous loan so you may not be have any loss.
It is better to finish the previous loan first so that you can use the net amount in a proper way. The possibility if you still have an outstanding balance is that they will deduct your balance. Only the net amount will be brought by you.
3. If you ATM cards are already pawn, I recommend buying it back first.
Lending institutions who accepts ATM cards as collateral has the highest interest rate. Most of them range from 5 years to 10 years before you can get your ATM back. The interest is much higher compared to the principal amount. It may be better to find solutions to get your ATM card first.
4. Since the loan term is too long, it is better not to avail of re-loans first.
Do not rush for re-loans. Five years is too long to wait. Remember to spare a little amount for yourself.
5. Weigh everything first before you dive into the five years loan term.
If the money is still not that needed, make ends meet by finding other solutions. Weigh all your options to avoid regrets. Think first to avoid regret later on. Most of the time, teachers regret what they have done later on. The realization always comes last. – Clea | Helpline PH