Credit card applications have skyrocketed among Filipino consumers, buoyed by a healthy digital economy and a wider market trend toward cashless payments. Though credit cards have been available in the Philippines for several decades, the recent rise of e-commerce, digital services, and international travel, as well as an overall stronger consumer culture has found more Filipinos reaching out for plastic. Neobanks like Maya are now offering even more simplified credit card online application processes to meet the surging demand, introducing innovative products like the Landers Cashback Everywhere Credit Card, which gives cardholders up to 5% cashback at Landers, 2% on dining spends, and 1% on all other qualified transactions.*
That said, Filipinos have long been wary of the challenges of managing debt, especially during times of financial uncertainty. Even though more people are busting out their credit cards for fancy dinners and online purchases, Filipinos' financial prudence tends to kick in when it matters most.
Still, no matter how responsible you are, unexpected financial challenges can arise. If these happen while you’re in the middle of managing credit card debt, things can get discouraging. Fortunately, regaining control of your financial stability is always possible. Below are some practical tips for coming out of credit card debt when life becomes hectic and uncertain.
1. Take an Honest Look at Your Financial Situation
Kick things off by taking a comprehensive look at your finances. On a notebook or spreadsheet app, list all your credit card debts, including the balances, interest rates, and due dates. Next, you’ll want to list down your sources of income. This will give you a real understanding of how serious your debt is and when you can expect to get out of it.
2. Seek Professional Financial Advice
Even though it probably means paying a one-off service fee, consulting a real financial advisor for personalized guidance can simplify your predicament. These professionals will have access to tools, experience, and industry knowledge that can make your debt more manageable. The clarity that an expert brings to the situation is usually worth your while, as it can mean getting out of debt faster.
3. Create and Commit to a Tailored Repayment Plan
Based on what you’ve learned, write up a structured but realistic repayment plan that fits your income. Allocate a comfortable portion of your monthly income to settle your debts while covering the most critical essential expenses. Define clear milestones in your path towards debt freedom so that you have doable goals and small wins to look forward to.
4. Cut Back on Non-Essential Expenses
Unfortunately, once you become accustomed to a certain standard of living, it becomes very difficult to tone down your regular spending. Nevertheless, consider reducing luxuries like food deliveries, dining out, online subscriptions, and impulse purchases related to luxury or entertainment. Instead, redirect the savings from those areas toward your credit card payments to accelerate debt reduction. Putting up with small lifestyle changes today may speed up your journey to financial stability.
5. Pay Off High-Interest Debts First
If you have debts on multiple cards, focus on paying off credit cards with the highest interest rates first. This approach prevents compounding interest on the card you’re paying off, getting you out of debt faster. However, if the interest rates of the different debts are similar, you can consider paying off the card with the lowest total amount due first to free up income and build momentum for your next repayments.
6. Talk to Your Credit Card Providers
Reach out to your credit card providers to explore possible solutions like payment relief programs, consolidation, lower interest rates, or installment options. Though you may get a temporary hit to your credit standing, being proactive and transparent can result in favorable terms that make your ordeal manageable.
7. Set Payment Reminders
Avoid missed due dates by setting early reminders on your phone and enabling notifications from your card providers. Make it a habit to pay within the day of the reminder to avoid accumulating even more debt. With the Landers Everywhere Cashback Credit Card, you’ll get timely notifications from Maya regarding your billing statements and payment due dates.
Take Control of Your Finances with Maya’s Landers Cashback Everywhere Credit Card
As you work yourself back to financial stability, there’s no need to give up on credit cards altogether. However, your next credit card should be something that stretches your budget and offers you more value for money. This is where the The Landers Cashback Everywhere Credit Card by Maya excels. This exceptional Maya card comes with no annual fees for the first year (waivable for succeeding years), while offering, as mentioned above, up to 5% cashback at Landers, 2% on dining, and 1% on all other transactions*.
This card is perfect if you’re a Landers member and a frequent shopper at the superstore. When you shop at Landers, you’ll start with a base cashback rate of 3% if your total credit card spending is below PHP 20,000. This rate increases to 4% when you spend a minimum of PHP 20,000, wherever you use your card, and then it increases further to 5% when you accumulate a total qualified credit card spending of at least PHP 50,000 during the month. Collect enough points to get discount vouchers that you can also use at Landers. Beyond the generous cashback, the Landers Cashback Everywhere Credit Card also offers a hassle-free app and easy access to online assistance, making it a practical choice for responsible financial management.
Once you’re ready for a Maya credit card, look up the requirements and complete your online credit card application via the Maya app. If you’re not yet a Landers member, sign up online today or visit your nearest Landers Superstore.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
