The Philippines has just hit a record P15.69 trillion in debt as of July, sending shockwaves throughout the nation. The shocking news has many asking, is this massive debt truly the biggest threat to Filipinos today?
When the news broke out, people began talking about how each Filipino would have to pay an astounding P140,000 to pay off this debt. And that’s more than three times the average annual salary of many Filipino workers.
But those claiming that the increase in Philippines’ national debt spells immediate doom for the economy might be missing a crucial part of the bigger picture. Because there is another kind of debt that affects far more Filipinos and seems rather alarming in its complexity: personal debt.
The most urgent financial burden affecting many Filipinos is private debt. Every day, people struggle to pay off balances to formal and informal lenders. When you add these sums to all household members, the household’s overall income shrinks to a very low level. Meanwhile, Filipinos who lack access to banking services have to borrow from informal money lenders, such as the five-six system. This debt situation isn't as visible because it doesn't pop up into bold headlines, right up front.
Here's another reality Filipinos have to reckon with: how much every household earns annually would instead decrease because of the growing burden of payables by so many consumers. Not to mention payment for utility bills.
Raise awareness on what we could make out of household income, as well as how most big financial burdens can just disappear even without letting go of a single peso from these given payables.
So if your nation remains embossed over record high debt levels and would love to just alleviate that long-anguished anxiously excited pain now if that single peso can make a change then feel relieved with each such family change we encounter.
The Philippines is always striving to rise from its ongoing and unpredictable plight caused by higher amounts with further change promised even sooner expected.