Highlights
- In Australia, people don't really borrow money from friends.
- You can opt for a payday loan, but interest rates are high.
- The best option to afford what you need is to save.
'May PERAan' is SBS Filipino's podcast series which features financial experts seeking to answer the most common questions about money and finances.
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Okay lang ba na mangutang ng pera sa kaibigan dito sa Australia?
SBS Filipino
08/02/202209:20
"Your mindset should always be about finding extra income," finance journalist Michelle Baltazar shares.
Michelle emphasises that earning more entails having that mindset and putting the mindset into action.
"As much as possible negotiate for a raise every year. It doesn't mean that you will get it, but always have the mindset that you want a better wage."
When a better wage doesn't come your way, here are some options available to you:
Borrowing from friends
While borrowing money from friends is commonplace in the Philippines, it isn't a practice often done in Australia.
"In Australian culture, borrowing money from friends is not the norm. We know all of us have our own financial commitments.
"In my entire 25 years in Australia, I haven't witnessed friends borrowing with collateral. In the Philippines that's common. There's even the so-called paluwagan which puts an acceptable interest on the loan.
"If you have a friend you think will be ok with lending money, typically, there will be no interest on the loan."
Payday loans
Michelle says that payday loans should be your last option due to the penalties and high interest.
"They're like pawn shops you can turn to for emergency money. You pay them when you get paid your salary.
"Unlike banks that check your credit and ability to pay, these are open to everybody; but take note that you have to pay penalties if you are unable to pay on time and interest rates are high. Research this option properly, but I don't suggest it."
Saving
"My advise is to always manage your risks. Always choose the option that is low risk. In this case, it's having patience and saving the money you need - even bit by bit."
Disclaimer: The information in this article serves only as a guide. For additional information regarding your particular issue or situation, consult with legal, financial and/or tax experts.
