So you’ve got bills lined up for the month, and then, out of nowhere, a medical expense comes up or you lose your source of livelihood. In moments like these, borrowing money can feel like a lifeline, giving you the extra funds you need to manage life’s unexpected twists and turns. Thankfully, with many convenient options to borrow money online in the Philippines, such as Maya Easy Credit and Maya Personal Loan, you can have the funds you need within minutes. When done thoughtfully, taking out a loan or using a virtual credit line can be an effective way to keep your finances afloat without sacrificing your immediate needs.
But as helpful as borrowing can be, it also comes with risks if not handled carefully. Without a solid plan and responsible borrowing habits, debt can snowball and put you under even more financial strain. If you’re planning to borrow money anytime soon, here are some common mistakes to watch out for so you can manage your debt more wisely and avoid unnecessary financial stress.
1. Borrowing without a Clear Purpose
One common mistake many people make is borrowing money without a clear reason. Sometimes, it may be tempting to take out a loan simply because it's available or easy to get without fully considering whether it’s necessary. This can lead to unnecessary debt, where you end up paying interest on money you didn’t actually need in the first place.
Before applying for any loan, always make sure you have a specific goal for the money, whether it’s to cover an unexpected expense or fund something important. For small, short-term needs like emergencies or sudden bills, options like Maya Easy Credit let you borrow up to PHP 30,000 instantly, payable up to 30 days, with no paperwork required, making it a great option if you want to access quick funds while still keeping your borrowing targeted and controlled.
2. Not Comparing Loan Options
In a rush to get funds, many borrowers accept the first loan offer they receive without shopping around. They might overlook lower interest rates, better repayment terms, or more flexible options that could save them a lot of money in the long run. Every lender offers something different, and failing to compare can leave you stuck with a more expensive loan.
Always take the time to explore different lenders and loan products that fit your needs. For instance, if you need a larger amount for major expenses like home repairs or tuition, Maya Personal Loan allows you to borrow up to PHP 250,000 with flexible repayment terms of 6 up to 24 months. Its low monthly add-on rates and easy application through the Maya app make it a strong option compared to many traditional lenders.
3. Ignoring the Fine Print
Another mistake is rushing through the loan agreement without fully reading the terms. Important details like hidden fees, penalties, or fluctuating interest rates can easily be overlooked, leading to unpleasant surprises down the line. Many borrowers only realize these issues when they’re already struggling with repayment.
Before accepting any loan, make sure to read every detail carefully. Fortunately, many digital lenders like Maya make loan terms transparent and easy to understand right inside the app, so you know exactly what you’re agreeing to before proceeding.
4. Not Considering the Total Cost of Borrowing
People often focus only on the monthly payments and forget to calculate the total cost of the loan over time. While small monthly payments may seem affordable, high interest rates or longer loan terms can result in paying much more than expected by the end of the term.
When evaluating a loan, make sure you calculate the full amount you’ll repay. To make this easier, Maya offers a convenient loan calculator for both Maya Easy Credit and Maya Personal Loan options, allowing you to input your desired loan amount and view your estimated monthly installment, fees, and total repayment. This helps you make a more informed decision and ensures you fully understand the real cost of borrowing before proceeding.
5. Borrowing More Than They Can Afford to Repay
It’s easy to overestimate how much you can handle, especially when lenders offer larger amounts or when monthly payments seem manageable at first glance. But keep in mind that taking on a loan that stretches your budget too thin can also lead to late payments, financial stress, and even long-term debt problems.
To avoid this pitfall, always borrow within your means. Consider your existing expenses, savings goals, and emergency fund before committing to a loan. Digital lenders like Maya offer different borrowing levels—whether it’s the smaller, short-term Maya Easy Credit or the higher-limit Maya Personal Loan—so you can choose an amount and repayment term that fit your actual capacity to pay.
6. Missing Payments or Making Late Payments
Missing or delaying loan payments often happens due to poor planning, forgetfulness, or unexpected financial setbacks. Unfortunately, even a single late payment can result in penalties, higher interest rates, or a negative mark on your credit history.
The best way to avoid this is by staying organized and using tools that make repayment simple. With both Maya Easy Credit and Maya Personal Loan, repayments can be made in just a few taps directly through the Maya app, offering convenience and helpful reminders to keep you on track with your payment schedule.
When used responsibly, borrowing can help you cover important expenses and manage your finances more smoothly. However, it’s also important to approach borrowing with care to avoid unnecessary financial strain. By being aware of common pitfalls and exploring flexible lending options like those offered by Maya, you can stay in control of your financial health while confidently handling both planned and unexpected expenses.
